This report reviews the current providerpayment arrangements and policies of the Philippines, andthe extent to which they have contributed to the achievementof the HFS goals. It focuses on the pillars of the HFS thatcenter on provider payment issues, including what is paidfor and by whom (pillar 3) and how it is paid for (pillar4). Because the HFS envisages that pooled sources of healthfunding, such as payments by the Philippines HealthInsurance Corporation (PHIC or PhilHealth) and thegovernment budget, should progressively replace OOP spendingas the source of financing for health care, the extent towhich this shift has occurred is a recurring theme. Inaddition, the assessment looks at how the purchasingarrangements improve allocative and technical efficiency,equity, and quality. It takes a sectoral approach topurchasing, looking not only at the purchasing arrangementsof PhilHealth, but also purchasing of health services by theDOH and local government units (LGUs). The assessmentconcludes with concrete recommendations for the next fiveyears and beyond.