The Philippine Health Insurance Corporation (PhilHealth) and Thailand’s National Health Security Office (NHSO) on Wednesday signed a memorandum of understanding (MOU) to enhance financial coverage for in-patient cases.

The MOU, signed by PhilHealth president and chief executive officer Emmanuel Ledesma Jr. and NHSO Secretary General Jadej Thammatacharee in Pasig City, focuses on the development of a Diagnosis-Related Groups (DRG) payment system as the state insurer transitions from the current All Case Rates system.

This would ensure more comprehensive and impactful healthcare services, the PhilHealth said in an advisory.

DRG is a case-based payment system that covers all diagnosis and procedure codes related to a specific episode of care.

It noted additional patient characteristics such as complications and length of stay in a facility, among others.

This reflects a more accurate approximation of the costs associated with hospital admissions, the PhilHealth said.

It added that the system would improve health insurance coverage for patients and more appropriate reimbursement for healthcare providers which affect the quality and efficiency of healthcare delivery.

The PhilHealth and NHSO of Thailand participated in the 41st ASEAN Social Security Association (ASSA) Meetings from Nov. 25 to 27 in Parañaque City.

Best practices and challenges concerning social security in the region were discussed during the ASSA meetings.

ASSA is a non-governmental organization promoting collaboration among social security institutions from Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. (PNA)