A research-driven initiative by the Unilab Foundation and Ateneo de Manila University is urging local governments to rethink how they spend on health, as the country moves toward implementing the Universal Health Care (UHC) Law.

The collaboration, led by the Unilab Center for Health Policy (UCHP) and Ateneo’s School of Government (ASoG), with technical support from the Department of Budget and Management (DBM), focuses on strengthening the fiscal performance of local government units (LGUs) — a critical but often overlooked component in UHC rollout.

“Today is not just a ceremonial signing but a small step toward transforming local health governance in the country. We are happy and privileged to partner with the Ateneo School of Government and the Ateneo de Manila University,” said Atty. Jose Maria Ochave, executive director of the Unilab Foundation, during the ceremonial launch.

The project is the first of its kind to provide localized, research-backed solutions for LGUs to improve healthcare financing. Its ultimate aim: to empower LGUs to make better spending decisions and maximize their role under the UHC framework through partnerships with private institutions.

UCHP and ASoG are drawing on their respective strengths—public policy training, evidence-based research, and health policy analysis—to address inefficiencies in health budgeting and spark long-term reform.

“This is very important as pointed out about the UHC Law; there’s a lot to do,” said Ateneo Vice President for Higher Education Dr. Maria Luz C. Vilches. “Our noble goal is health insurance, well-being—but we have to attend to the mundane things called budget and money.”

The initiative also highlights the need for stronger accountability in how LGUs manage health budgets. According to UCHP Program Director Ruben “John” Basa, evidence suggests that despite increasing overall health budgets, LGU spending is becoming “irrelevant” due to poor allocation.

“In 1992, the out-of-pocket spending of the Philippines was at 47 percent, Thailand was at 45 percent,” Basa said. “Fast forward to 2023, the Philippines’ out-of-pocket spending went down to 45 percent, Thailand to 9.2 percent. They must be doing something good over there.”

UCHP’s recent studies — including reviews of PhilHealth’s payment reforms, Konsulta rollout, and service delivery models for geographically isolated areas — reinforce the urgency of a more strategic local budgeting approach. The group’s work will soon be pilot-tested in Ormoc City.

ASoG Dean Philip Arnold Tuaño echoed the call for fiscal accountability and industry involvement in health reform.

“Today formalizes a partnership with the common vision of pursuit of equitable, accessible, and effective healthcare for the Philippines,” he said. Tuaño emphasized the role of data in helping both local and national leaders make better policy and budget decisions.