The Philippine Department of Health (DoH) recorded P2.24 billion in unadjusted accounting errors and omissions in its 2025 financial statements, based on findings by the Commission on Audit (CoA), the constitutional body that reviews how government agencies spend public funds. State auditors also flagged P226.16 million worth of expired medicines and medical supplies, along with P242.36 million in idle or undelivered medical equipment.

The CoA said the unadjusted errors exceeded P1.85 billion — equivalent to 1% of the department's total expenditures of P185.38 billion — the threshold at which discrepancies could materially affect the agency's financial statements.

A consolidated audit covering 120 health facilities found unadjusted errors affecting assets by P2.25 billion, liabilities by P1.28 billion, and equity accounts by P2.83 billion.

Auditors additionally flagged P242.36 million worth of medical equipment under 338 contracts in the Health Facilities Enhancement Program (HFEP) that remained idle, unused, or undelivered. The CoA attributed the problem to gaps in planning and monitoring, noting that specialized equipment was procured before officials confirmed whether facilities had suitable sites, sufficient space, adequate electrical capacity, or completed buildings.

"The HFEP encountered challenges in fully meeting its objective of upgrading essential healthcare services due to gaps in strategic planning and monitoring," state auditors said.

The audit also identified P226.16 million worth of expired drugs, medicines, and medical supplies as of Dec. 31, 2025 — publicly funded stock that could no longer be dispensed to patients. The CoA cited weaknesses in procurement planning, demand forecasting, distribution, and warehouse monitoring that prevented medical inventory from being used or distributed on time.

"Operational and administrative challenges in the department's procurement planning, distribution, and warehouse monitoring systems affected the timely utilization of medical inventory," the auditors said.

The CoA further found policy and implementation gaps in healthcare financial assistance programs, including the Medical Assistance to Indigent and Financially-Incapacitated Patients program and the zero-balance billing policy. Findings across three Centers for Health Development and five other operating units included inconsistent financial assistance limits, undisbursed and unliquidated funds, deficits shouldered by health facilities, and inconsistent application of program guidelines.

These shortcomings threatened efforts to reduce out-of-pocket healthcare costs for financially disadvantaged patients, the auditors said.

Separately, 209 of 327 audit recommendations from previous years remained unimplemented at the end of 2025, while outstanding suspensions, disallowances, and charges — CoA accountability measures that can hold officials answerable for questioned public funds — reached P9.57 billion.

DoH officials agreed to tighten procurement protocols, improve project monitoring, and strengthen inventory controls. Under the CoA's audit process, agencies are expected to carry out corrective measures that state auditors verify in succeeding annual reviews, making follow-through on these commitments the next measure of whether the 2025 findings are addressed.

— Pexcel John Bacon, BusinessWorld