The RDIF aims to provide access to essential quality drugs to clients who are enrolled in PhilHealth's Indigent Program and ensure timely reimbursement of participating pharmacies through a secure cash flow. It also tries to encourage both patients and local government unit (LGU) officials to enroll individuals, especially the poor, into PhilHealth.
The RDIF issues payments to accredited pharmacies for drugs issued to qualified patients. RDIF revenues come form capitation contributions from LGUs, co-payments from the patients, PhilHealth reimbursement for inpatients, as well as a grant from the Department of Health (DOH).
Operations of the RDIF are managed by the LGUs in Sogod Bay ILHZ and are headed by Sogod Bay ILHZ Board. The Memorandum of Agreement for the RDIF creates provisions for the smooth operations of the fund, including a drug benefit ceiling for inpatients and outpatients, standard contributions from the LGUs, and procedures for the collection of co-payment and accreditation of private pharmacies, among others.
The RDIF is implemented through a cooperative agreement between the LGUs within the Sounthern Leyte Inter-local Health Zone and PhilHealth with the assistance of the DOH and GTZ. The DOH provided a seed grant of one million dollars to start the fund's implementation in 2004.