The Department of Health (DOH) will prioritize Level 3 local government unit (LGU) hospitals for the ₱1 billion allocation under the zero-balance billing (ZBB) program in the 2026 national budget.
In a press conference at the Jose R. Reyes Memorial Medical Center, Health Secretary Ted Herbosa said guidelines are still being finalized but confirmed he will select the 17 Level 3 LGU hospitals nationwide.
“Pag LGU [hospital] ka at Level 3, ibig sabihin mataas ang level ng services mo pag Level 3 ka kasi may operations, may ICU, may residency clinics. Talagang very similar to the services given DOH hospitals. There are 17 LGU hospitals [at Level 3],” Herbosa explained.
He added that Level 2 hospitals aiming for Level 3 and LGU hospitals accepting spillover patients from DOH facilities will be next in line.
“Yung LGU hospitals, e-enganyuhin natin mag zero-balance through funds from this ₱1 billion… This is my way of trying to push the LGU hospitals to make their hospitals better,” he said.
President Ferdinand “Bongbong” Marcos Jr. signed the ₱6.793-trillion 2026 General Appropriations Act on Monday, which includes ₱448.125 billion for health programs—the largest in Philippine history.
Of this, ₱1 billion is earmarked for ZBB to cover in-patient services, basic accommodation, disease surveillance, rapid response, and sustainable health financing.
Herbosa admitted the ₱1 billion allocation may not be sufficient but said other program funds such as the Medical Assistance to Indigent and Financially Incapacitated Patients (MAIFIP) could supplement it.
“We will create the correct guidelines para di naman maubos agad, matipid natin the whole year at mag-benefit ang mas maraming Filipino sa zero balance sa ating LGU hospitals,” he added.