economics of nursing & health care

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Prof. Neriza G. Mamasabulod

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Health Economics: Nursing & Health Care

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Page 1: Economics of Nursing & Health Care

Prof. Neriza G. Mamasabulod

Page 2: Economics of Nursing & Health Care

UNEMPLOYMENT AMONG FILIPINO NURSES

Several months ago, news of unemployment among Filipino nurses remained afloat with the number reaching up to about 400,000. Statistics from the Department of Labor and Employment (DoLE), particularly on its “Market Trend” analysis.

Page 3: Economics of Nursing & Health Care

The DOLE and the Board of Nursing (BON) acted with dispatch to review available data which revealed that from 1952 to 2008 the country has registered or licensed 480,992 Filipino nurses out of 523,272 who actually passed the Philippine Nurse Licensure Examinations.  

Page 4: Economics of Nursing & Health Care

According to DOLE data the total number of Filipino nurses employed between October 2001 & 2007 was 58,000 (fifty eight which represented 3.86% of the total employed professional workers (1.5 million) reflected in the National Statistics Office, Labor Force Survey  as source of data.

Page 5: Economics of Nursing & Health Care

There  is actually a market slowdown starting 2006, when the demand for Filipino nurses started to plateau as a result of the retrogression in the US market and a change of nursing employment policy in the UK. 

The previous high demand for Filipino nurse has kept our nursing pool in the country relatively large. 

Despite the number of nurses reportedly deployed/employed there still is a slow-down in the hiring of newly passed nurses. 

Page 6: Economics of Nursing & Health Care

The actual unemployment and underemployment figures would only range to about 80,000 and the developments in the international job markets remain to be bright and still promising.

Page 7: Economics of Nursing & Health Care

Other data on nursing in the Philippines that are worthy to note are:

1. From 27,833 nursing enrollees recorded in academic year 2000-2001, there was a record high of 453,896 enrollees in academic year 2006-2007 or an annual average growth rate of 62%. (Source of data: CHED)

2. The number of nursing graduates showed an increasing trend for the period 2000– 2005, with 140.5% increase in the number of graduates in SY 2004 - 2005 (Source of data: CHED)

Page 8: Economics of Nursing & Health Care

3. From 2001-2008, the number of board examinees was on the rise. The passing rate exhibited a declining trend from a high of 55.8% in 1998 to a low of 45.2% in 2006 or an annual average of 49.5%. In June 2008, the passing rate (43.1%) was lower than the average registered for the period 1998-2007. In addition, 1 out of every 5 colleges of nursing registers a “zero” passing mark, which is indicative of the questionable quality of education and/or decreasing quality of students admitted for the nursing profession. Source of data: PRC

4. From 1998 to June 2008, 224,961 did not pass the Philippines Nurse Licensure Examination. This figure is 32% higher than the 169,766 combined local and foreign demand for nurses.  What could  be done with this human resources in the country?

Page 9: Economics of Nursing & Health Care

5. The migration of “experienced” nurses who are highly skilled (5-15 years) and specialists in their fields of expertise actually creates a vacuum in the local health care delivery system.  Most nurses locally employed are new graduates who lack experience and skills which pose serious implications on the quality of health care provided our own countrymen. One of the push factors for migration is the wide discrepancy in the salaries of our nurses employed One of the push factors for migration is the wide discrepancy in the salaries of our nurses employed locally and overseas (US$4,000- US; $700-1,500 in KSA; and US$180-220 in the Philippines)

Page 10: Economics of Nursing & Health Care

Economics of Nursing EducationEconomics of Nursing Education Before the 1950s, there were only 17 nursing schools in the Philippines

which graduated 7,179 qualified nurses per year. The number of schools and nursing graduates increased consistently. A peak of 14,112 qualified nurses was reached in 1976. The increase in nursing graduates was mostly due to a response to the demand of Philippine nurses abroad during those times.

During the late 70s however, US and West Germany (two countries where Philippine nurses were in demand), closed its doors temporarily to foreign nurses. Because nursing schools were created as a response to world market demand, there was an oversupply of nurses who could not find work in the Philippines. Nursing began to lose its attraction as a profession. By the early 1980s, there was an insignificant number of applicants to nursing schools. The Philippine Regulation Commission registered 5,859 enrollees in 1983 compared to a peak of 14,563 in 1980.

In order to off set the decreasing enrollment of nurses in the early 1980s, nursing schools adopted a policy of 'open admission' which basically meant anybody could enroll. Since then, according to the PNA, the quality of nursing education has started to go on a downhill trend.

Page 11: Economics of Nursing & Health Care

Supply & Demand for Nurses

As of year 2000 Number of RN• Supply • 306,110• Demand • 178,045• Surplus • 128,065

* Demand is much higher from other countries.

Page 12: Economics of Nursing & Health Care

Philippine Nurses Salary The provision on salary increase is specially

crucial given that the present average pay of nurses in tertiary government hospitals at basic pay of 12,026 under Salary Grade 10 is way below the P27,100 monthly or P911.00 daily living allowance for a family of 5 (Source: National Wages and Productivity Commission).

Page 13: Economics of Nursing & Health Care

ARTICLE VIIHealth Human Resources Production, Utilization and Development

Section 32. Salary. - In order to enhance the general welfare, commitment to service and professionalism of nurses the minimum base pay of nurses working in the public health institutions shall not be lower than salary grade 15 prescribes under Republic Act No. 6758, otherwise known as the "Compensation and Classification Act of 1989": Provided, That for nurses working in local government units, adjustments to their salaries shall be in accordance with Section 10 of the said law.

Republic Act No. 9173RA9173

AN ACT PROVIDING FOR A MORE RESPONSIVE NURSING PROFESSION,REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 7164, OTHERWISEKNOWN AS "THE PHILIPPINE NURSING ACT OF 1991" AND FOR OTHER

PURPOSES

Page 14: Economics of Nursing & Health Care

Nurses Salary• Salary Grade 10 • 12,000 Php

• Salary Grade 11 • additional 6,000 Php from above

• Salary Grade 15 • 24,000 Php

Page 15: Economics of Nursing & Health Care

Now is the time for all Filipino nurses to close ranks and consider  contingency measures for the collective good of the nursing sector to cushion the effects of the said global economic crisis which will definitely impact  the Filipino nurses, their families, and the country as a whole.

Page 16: Economics of Nursing & Health Care