PhilHealth Head Replaced Following Calls for Removal

PhilHealth Chief Replaced Amid Controversies

Manila, Philippines — President Marcos Jr. has appointed Dr. Edwin Mercado as the new president and CEO of the Philippine Health Insurance Corp. (PhilHealth), replacing Emmanuel R. Ledesma Jr., who faced growing calls for his removal due to several controversies. It remains unclear whether Ledesma resigned or was dismissed, as the Presidential Communications Office did not clarify.

Ledesma was criticized for poor management of PhilHealth funds, leading to Congress cutting the agency’s subsidy to zero in the 2025 national budget. Senators also slammed him for his unprofessional behavior during budget hearings, where he struggled to explain the agency’s ₱89.9 billion in excess funds. Public outrage grew when it was revealed that PhilHealth had allocated ₱138 million for its 2025 anniversary celebrations, despite many Filipinos struggling to access basic healthcare.

PhilHealth also faced a major cyberattack in 2023, which exposed millions of members’ personal and medical information.

Meet the New PhilHealth Chief

Dr. Edwin Mercado, a U.S.-trained orthopedic surgeon with 35 years of experience in hospital management, has taken over as PhilHealth’s new leader. Before his appointment, he served as vice chair of Mercado General Hospital/Qualimed Health Network. Under his leadership, the hospital group expanded to include multiple facilities, clinics, and healthcare programs across the country.

Mercado graduated from the University of the Philippines in 1987 and earned a master’s degree in Global Health Delivery from Harvard Medical School in 2023. He is known for promoting equal access to quality healthcare and using technology to improve health systems.

Senators Welcome the Change

Senators praised Ledesma’s replacement, urging Mercado to focus on reforms. Senate President Francis Escudero said the change should’ve happened sooner, while Sen. JV Ejercito stressed the need to fully implement the Universal Health Care (UHC) Act to reduce out-of-pocket expenses for Filipinos.

Sen. Grace Poe hopes the new leadership will make PhilHealth more responsive and efficient, while Sen. Joel Villanueva believes Mercado’s expertise will help improve the agency’s services.

Ledesma’s Achievements and Criticisms

Despite the controversies, Ledesma’s term saw some reforms, including faster processing of claims (from 40 days in 2021 to 25 days in 2024) and increased benefit rates for over 9,000 health packages. PhilHealth also raised coverage for serious illnesses like pneumonia, stroke, asthma, neonatal sepsis, and hemodialysis.

However, Health Secretary Teodoro Herbosa, who sits on PhilHealth’s board, openly criticized Ledesma’s leadership, calling for urgent reforms to fix what he described as a “broken system.”