Title
Tiong Bi, Inc. vs. Philippine Health Insurance Corp.
Case
G.R. No. 229106
Decision Date
Feb 20, 2019
Tiong Bi, Inc. challenged PhilHealth's suspension of its accreditation, alleging wrongful charges and public health risks. The Supreme Court denied the petition, ruling the remedy improper and finding no irreparable injury or grave abuse of discretion.

Case Summary (G.R. No. 229106)

Background and Initial Findings

The complaints against Tiong Bi, Inc. included "Padding of Claims" and "Misrepresentation by Furnishing False and Incorrect Information." These allegations were indirectly based on similar charges against two accredited doctors who, after an investigation by PhilHealth's Arbitration Department, were exonerated on August 1, 2008. Subsequently, a different resolution from PhilHealth on February 24, 2016, found Tiong Bi, Inc. guilty of the same offenses, resulting in penalties including a six-month suspension of its accreditation and monetary fines amounting to P170,000.00.

Petitioner’s Appeals and Claims

Aggrieved by the PhilHealth's punitive actions, Tiong Bi, Inc. sought redress from the Court of Appeals (CA) through a petition for certiorari under Rule 43 of the Rules of Court and filed an Extremely Urgent Motion for Immediate Issuance of a Temporary Restraining Order (TRO). The petitioner argued that the PhilHealth resolution was fundamentally flawed and based on an erroneous case. Moreover, Tiong Bi, Inc. claimed that the potential closure of its hospital would jeopardize public health in the region, and thus constituted grounds for urgent relief.

Denial of the TRO by the Court of Appeals

The CA denied Tiong Bi's motion for a TRO on August 10, 2016, asserting that there was no actual right to be protected nor the likelihood of irreparable harm ensuing from the PhilHealth penalties. This denial was reaffirmed in a subsequent ruling on January 12, 2017, rejecting the petitioner’s motion for reconsideration. Notably, the CA indicated that the primary case remained unresolved.

Legal Basis and Procedural Errors

In its current petition for review under Rule 45, Tiong Bi contended that the CA erred in its refusal to grant the TRO, alleging that public safety was at risk. The Supreme Court pointed out that Tiong Bi had chosen an improper remedy by appealing via a certiorari petition when the proper procedure would have been to file under Rule 65. It was clarified that the denial of a TRO is considered an interlocutory order and thus unappealable.

Issues of Factual Nature

Upon assessing the arguments presented, the Supreme Court identified that the arguments raised by Tiong Bi were factual rather than legal. The petitioner’s claims relied on disputing evidence pertaining to the PhilHealth Resolution, a matter already under consideration by the CA. As such, it was improper for the Supreme Court to entertain these matters at this stage since its jurisdiction under Rule 45 permits only questions of law to be examined.

Absence of Grave Abuse of Discretion

The Supreme Court also concluded that even if treated as a petition under Rule 65, it lacked merit. The discretion to grant or deny a TRO lies with the reviewing court, which must evaluate the evidential foundation supporting the request for injunctive relief. In this instance, the Supreme Court found no evidence of grave abuse of discretion in the CA’s denial of Tiong Bi's TRO petition.

Assessment of

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