Technical Reports

Reform Areas

 

CONVERGENCE STRATEGY

When the Health Sector Reform Agenda (HSRA) was planned in early 1999, the DOH aimed to achieve nationwide implementation of the health reform program by 2004.  As designed, the program would require a massive public investment of around 111 B pesos.  It would also require sustained political commitment and support in order to neutralize the many controversial aspects of the program. However, it was only in early 2000 that the DOH was able to decide on an implementation strategy and develop an overall implementation plan.  A unique implementation strategy had to be adopted because the major assumptions that formed the bases for planning HSRA in 1999 were no longer valid in 2000.  For example, it was no longer realistic to expect that the huge capital outlay required to implement the program was forthcoming because of the increasing budget deficit faced by government, the dwindling external donor support, and the reluctance of government to resort to deficit spending.  Furthermore, the political disturbance that began in late 1999 and which eventually led to the downfall of the Estrada administration (which by the way, authored and championed the reform program as part of its pro-poor strategy), made it unlikely that the sustained political commitment and support needed for the long-term implementation of the program would continue.  Because of these, the DOH decided that instead of aiming for a nationwide implementation of HSRA by 2004, it would design the implementation of the reform program in such a way as to achieve by 2004 a momentum for health reform that will be difficult to reverse.  The strategy that was adopted is to implement the reform package in selected strategic LGU sites, and the intention is to generate substantial improvements in health services provision and financing which the residents in these strategically located LGUs can readily appreciate.  It is being theorized that if the residents and political leaders in these sites are happy and satisfied with these improvements, they will form a strong support base that will make HSRA implementation in that locality irreversible.  Residents of neighboring provinces and cities, after seeing the health service improvements and financing benefits enjoyed by their neighbors, will pressure their own local governments to grant them the same package of benefits.  Thus, through the so-called rippling effect, it can be reasonably expected that the adoption of the health reforms will gradually spread throughout the country.

Sixty four LGUs, or two provinces and two cities in each of the 16 administrative regions were selected and targeted by the DOH for HSRA implementation by the year 2004.  These LGUs are called convergence sites not only because all the five major health reform components are being implemented in an integrated fashion, but also because all the major stakeholders such as the DOH, PhilHealth, the local government, civil society groups, and the beneficiaries themselves come together and pool their efforts and resources to make the health reforms succeed.

It was originally planned that HSRTAP would directly assist HSRA implementation in 16 of the 64 sites, but the number was later reduced to eight after recognizing the enormity of the effort and resources needed to launch a convergence site. HSRTAP developed the methodology, processes, procedures, and tools for implementing the convergence strategy, which are being applied in the eight LGU sites that it is directly assisting. These are constantly refined as experiential knowledge accumulates, and are being shared with the central and regional DOH offices, which will be responsible for attaining the target of establishing 64 HSRA convergence sites by 2004.

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