MANILA – Malacañang on Tuesday said local government units (LGUs) must ensure they have sufficient funds before issuing hospital guarantee letters.
In a press briefing, Palace Press Officer Claire Castro stressed that such guarantees should not be charged to the Department of Health (DOH), particularly for hospital services already covered under the government’s Zero Balance Billing (ZBB) program.
Castro made the statement in response to remarks by Baguio City Mayor Benjamin Magalong, who criticized Health Secretary Ted Herbosa for saying that DOH-run hospitals do not rely on guarantee letters, especially for basic accommodations.
Castro defended Herbosa, noting that DOH hospitals, including the Baguio General Hospital (BGH), do not require guarantee letters for basic services under the ZBB policy.
“So, kung magi-issue po ang mayor ng Baguio City ng guarantee letters, siguraduhin po nila na may pondo po sila (if the mayor of Baguio City issues guarantee letters, they must make sure they have funds),” she said.
Castro said guarantee letters issued by the Baguio City government were funded by the city’s own resources and not by the DOH, based on the arrangement with the BGH.
She added that the issuance of such letters implies financial responsibility on the part of the issuing entity, which serves as the guarantor.
She emphasized that the guarantor, not the DOH, assumes responsibility, if the patient is unable to settle the payment.
“Ang sinasabi lamang po kasi ni Sec. Ted Herbosa, kapag binanggit po natin ang guarantee letters, it means may nagga-garantiya. Kapag kayo po ay umutang at mayroon kayong guarantor, iyong guarantor kapag hindi nakapagbayad iyong umutang, iyong guarantor hahabulin (What Secretary Ted Herbosa is saying is that when we talk about guarantee letters, it means there is a guarantor. If you take out a loan and you have a guarantor, and you fail to pay, the guarantor will be held liable),” Castro said.
“So, kung sinuman po ang guarantor nito, nagbigay ng guarantee letter ang nais lamang po sabihin ni Sec. Ted, iyon po ang magbabayad. Hindi po manggagaling dapat ang pondo na iyan sa DOH (whoever issued the guarantee letter as the guarantor is the one who should pay. That funding should not come from the DOH),” she added.
Castro also stressed that the policy against the use of guarantee letters by politicians is part of the proposed “anti-epal” provisions under the 2026 General Appropriations Act (GAA), which was initiated by President Ferdinand R. Marcos Jr. and has yet to be fully implemented.
“Unang-una po, iyong guarantee letter 2026 pa lang po ito ipapa-implement, so dapat malaman po mismo ni Mayor Magalong ‘yung timeline (First of all, the guarantee letter policy will only be implemented in 2026, so Mayor Magalong should be aware of the timeline),” she said.
She said patients seeking basic accommodation in DOH hospitals, such as BGH, do not need guarantee letters, and that LGUs are free to make arrangements with private hospitals, provided they have sufficient funding.
“At kung ano po ang magiging usapan nila sa mga private hospitals hindi po natin hahadlangan (And whatever arrangements they make with private hospitals, we will not interfere),” Castro said. (PNA)