By Vanessa B. Hidalgo
It is no secret that despite the enactment of the Universal Health Care Act in 2019, Filipinos continue to struggle with unequal and unaffordable access to medical care.
The World Health Organization has described the Philippine healthcare system as “fragmented,” pointing to stark disparities in quality and access between urban and rural areas, as well as across socio-economic groups.
The shortage of hospitals and surgical equipment remains one of the primary barriers to quality healthcare. The last government-owned hospitals were built nearly 50 years ago, when the Philippine population was just about 60 million. Today, the population has grown to 112 million, yet no new national facilities have been added.
AC Health recently held its fifth Health Leadership Summit, where an expert panel agreed that expanding medical infrastructure hinges on public-private partnerships (PPPs).
The panel—composed of leaders from the academe, government, and the private sector—emphasized that meaningful collaboration between public and private institutions is key to improving the country’s healthcare system.
Bridging the gaps
“[PPPs] have become a powerful instrument to bridge gaps, not only in health care service delivery, but also in other sectors such as roads, airports, water, electricity,” Health Secretary Teodoro Herbosa said.
“We have seen how the private sector through its innovation, through its resources, efficiency and good governance can complement government's stewardship to deliver better health care outcomes and better outcomes for all.”
Pointing to successful healthcare PPPs—from dialysis centers at the National Kidney and Transplant Institute to hospitals in Spain and India—Herbosa stressed that fair risk allocation, stable regulations, and transparent contracts are essential for lasting success.
He urges the private sector to work with the Department of Health to strengthen primary care—covering health education, disease prevention, treatment, maternal and child services and chronic care—and to shift healthcare’s focus from illness to overall wellness.
Balancing the system
“I mentioned before that I wanted to change the Department of Health's name to the Department of Health and Wellness. Because that's the key. If we put people to wellness, avoid them from getting into the hospital, the government will spend less. And spending for primary care is actually cheaper,” Herbosa shared.
Across all these models, he added, the focus remains the same: strengthening service delivery. The private sector is beginning to view the health sector differently.
As head of the country’s largest hospital conglomerate, he recognizes that the government alone cannot sustain such a massive system. Private sector collaboration, he said, is needed to achieve a resilient healthcare system.
“I am willing to share the management of some hospitals and outsource maintenance and operational contracts. This approach will ensure that hospitals remain fully functional—providing doctors with the resources and equipment they need to deliver quality care,” he said.
Herbosa noted that PPPs need early, sustained stakeholder engagement and strong legal frameworks. Each partnership must be carefully designed, with clear goals, agreed standards, and open dialogue for ongoing reforms.
But, at the end of the day, the private sector also needs to profit. While the private sector fuels innovation and efficiency, Herbosa shared, profits must be balanced to ensure that health care remains affordable. The challenge lies in moderating profit without compromising access and affordability.
Investment in health
Dr. Eduardo Banzon of the Asian Development Bank underscored the bank’s push for a more prosperous, inclusive, and sustainable Asia, stressing both the private sector’s role in driving economic growth and the need for private funding to support healthcare development.
He added that PPPs are a key tool to address the lack of healthcare infrastructure and services in many countries, including the Philippines, which has not built a new public hospital since 1979
Banzon stressed that PPPs are a key tool for addressing the lack of healthcare infrastructure and services in many countries, including the Philippines, which he stated has not built a new public hospital since 1979.
He also pointed to challenges such as ensuring equitable revenue models, citing user fees in tollways and airports as examples. Drawing on cases from Europe, Australia, and Malaysia, he emphasized that successful PPPs require mutual commitment and a clear understanding of risk allocation.
Leading by example
AC Health is taking the lead in partnering with the public sector to strengthen the healthcare system. The Ayala Group’s health arm already has three such collaborations, including a hemodialysis center at the Valenzuela City Emergency Hospital. The facility is equipped with 12 hemodialysis machines and provides treatment to eligible patients under the PhilHealth Dialysis Package.
AC Health has likewise entered into a management contract with the local government of Valenzuela for its upcoming ambulatory surgical center.
It also oversees the Faculty Medical Arts Building of the Philippine General Hospital. On top of these, the company is poised to secure a P235-million deal to establish hemodialysis centers in 13 hospitals across Iloilo
“Across AC Health's hospitals, clinics, and pharmacies, we believe that health care is strongest when we move in lockstep, across private institutions, with our public sector colleagues, and with the communities that we serve,” Fernando Zobel de Ayala, chair of AC Health, said in his speech.
Building for tomorrow
Dr. Beverly Ho, chief health officer of AC Health, says Ayala has spent the past decade building businesses that help people thrive—especially in health and education—committing to affordable, quality care and partnering with progressive, values-aligned local governments.
Paolo Borromeo, president and CEO of AC Health, elaborates that during the pandemic, AC Health’s partnership with the public sector deepened. It aims to reduce medicine costs, lower out-of-pocket expenses, build a more connected and equitable healthcare system, and deliver better care for all Filipinos—progress that hinges on strong, sustainable public-private alignment.
“The future of healthcare cannot be built in silos; it requires partnerships—not only between the public and private sectors, but among all who believe Filipinos deserve quality care. The true measure of these partnerships is in creating systems where care is delivered seamlessly, affordably, and equitably,” he adds.
