UST Hospital retrenches workers due to ‘significant losses’ amid COVID-19

MANILA, Philippines — The University of Santo Tomas Hospital (USTH) has reduced its manpower and implemented cost-efficiency measures following “significant losses” inflicted by the coronavirus disease 2019 (COVID-19), the university’s official publication reported Sunday.

“[P]ainful decisions were needed to be made. While the news around significantly highlights the health and medical impact of the pandemic, the huge economic and financial impact brought about by this crisis to all business establishments, most especially to healthcare institutions, is often overlooked,” the hospital’s medical director Dr. Marcellus Francis Ramirez was quoted as saying in the report of The Varsitarian.

In the hospital’s statement, which The Varsitarian attached in its report, Ramirez also said the reimbursement from state-owned Philippine Health Insurance Corp. (PhilHealth) “is delayed by an average of 5-6 months.”

“Currently, the receivable of USTH from PhilHealth stands at more than P180 million and counting,” he added.

According to the hospital medical director, the “huge cost” due to the contingency measures it has implemented to respond to the health crisis “is taking a very serious toll on the hospital’s sustainability.”

These measures include the cancellation of elective procedures and admissions to give way to the intensive care of COVID-19 patients.

“Since the start of the pandemic and the enhanced community quarantine (ECQ) and lockdown that followed, the overall hospital census went significantly down,” Ramirez said.

“Moreover, most of the patients admitted were COVID patients. Ordinary and elective patients stayed away from most hospitals even up to now due to fear of possible (COVID-19) infection,” he added.

Despite this, Ramirez said the hospital continues to operate and pay for utilities, security, and janitorial services, as well as for the salaries of employees, most of whom are on leave.

“Many of the employees also could not come to the hospital because of limited transportation while others filed for unused leaves. There were even some who were not allowed by their parents and family members to report for work,” he said.

Ramirez said the USTH implemented a right-sizing of its non-crucial manpower complement “(i)n view of the enormous impact of the pandemic.”

The hospital also adjusted its operating hours and implemented other cost efficiency measures, he added.

“We first implemented non-renewal of fixed-term contracts and recently, retrenchment, which, based on our collective bargaining agreement (CBA), would be based on the principle of last in first out,” he said.

According to Ramirez, the retrenchment was implemented after it has been reviewed by the hospital’s legal counsel and “after we have complied with all legal requirements for the same, such as the notification to the Department of Labor and Employment (DOLE) and the 30-day notice to the affected employees.”

“Employees affected by the retrenchment measures will receive 150% separation pay based on our CBA, which is 50% higher than what the Labor Code provides,” he said.

“It must also be noted that retrenchment is a recognized valid and legal management measure and it remains as such even during the (COVID-19) crisis,” he added.

‘Uncertain’

Ramirez said it remains uncertain when the operations of the hospital will return to normal.

“We are uncertain if we can actually fully operate within the year,” he said.

“The new normal, as it is called and which we are gradually transitioning into, will not be an assurance that the hospital’s current manpower will still be the number needed to operate it,” he added.

To date, Philippine health officials have confirmed 9,223 COVID-19 cases in the country.

Of the number, 1,214 have recovered while 607 have died.

/MUF