Philippine Health Insurance Corp.

vs COA
G.R. No. 222710
July 24, 2018

FACTS: On March 26, 1992, R.A. No. 7305 (“The Magna Carta of Public Health Workers”)
was signed into law. Under Section 23 of said law, it provided for public health workers
longevity pay. Pursuant to such law, former DOH Secretary Romualdez, Jr. issued a
Certification declaring PhilHealth officers and employees as public health workers,
which was further concurred with the Office of the Government Corporate Counsel
(“OGCC”) in its Opinion and, thus, entitled them to longevity pay.

However, COA Supervising Auditor Agustin issued an Audit Observation

Memorandum stating the grant of longevity pay to PhilHealth officers and employees
was devoid of legal basis and, thus, recommended its discontinuance.

PhilHealth, through its then President, Dr. Banzon, asserted that PhilHealth officers and
employees were indeed public health workers. He anchored his claims on the February
20, 2000 Certification of the DOH and the April 26, 2001 Opinion of the OGCC.

However, COA Supervising Auditor Agustin found unsatisfactory the justifications for
the grant of longevity pay, and issued ND No. H.O. 12-005 (11) dated July 23, 2012.

ISSUE/S: Whether or not PhilHealth officers and employees are “public health
workers”?

HELD: NO. PhilHealth personnel are not public health workers. Under Section 3 of
R.A. 7305, the term “health workers” means:

“All persons who are engaged in health and health related work, and all
persons employed in all hospitals, sanitaria, health infirmaries, health centers,
rural health units, barangay health stations, clinics and other health-related
establishments owned and operated by the Government or its political
subdivisions with original charters and shall include medical, allied health
professionals, administrative and support personnel employed regardless of
their employment status.”

Based on the aforequoted provisions of RA No. 7305, it readily shows that to be

included within the coverage, an employee must be principally tasked to render health
or health-related services, such as in hospitals, sanitaria, health infirmaries, health
centers, clinical laboratories and facilities and other similar activities which involved
health services to the public; medical professionals, allied health professionals,
administrative and support personnel in the aforementioned agencies or offices;
employees of the health-related establishments, that is, facilities or units engaged in the
delivery of health services, although the agencies to which such facilities or units are
attached are not primarily involved in health or health-related services. Otherwise
stated, an employee performing functions not primarily connected with the delivery of
health services to the public is not a public health worker within the contemplation of
the law.
PhilHealth personnel perform functions which pertain to the effective administration of
the National Health Insurance Program or facilitating the availability of funds of health
services to its covered employees, and, among others involve the: determination of
requirements and issue guidelines in relation to insurance program; inspection of health
care institutions; inspection of medical, financial, and other records relevant to the
claims, accreditation, premium contribution of employees covered by the program; and,
to keep records of the operations of the Corporation and investments of the National
Health Insurance Fund. These functions are not similar to those of persons rendering
health or health-related services, or those employees working in health-related
establishments, as discussed above. Undoubtedly, the PhilHealth personnel cannot be
considered public health workers under RA No. 7305