President Rodrigo Duterte on Monday said he was "grossly disappointed" over the alleged misuse of state health insurance funds on "ghost" dialysis treatments, which he said proves that corruption is pervasive.

A former employee of WellMed Dialysis Center in Quezon City last month bared that the clinic made payment claims for dead patients from PhilHealth from 2016 to 2018 .

"The recent uncovering of the massive fraud perpetrated against the public health insurance system proves that corruption is pervasive," Duterte said in his fourth State of the Nation Address.

"I am grossly disappointed. The government is conned of millions of pesos which could be used to treat illnesses and possibly save the lives of many," he said.

Duterte said he has instructed PhilHealth president Ricardo Morales, a retired army general he appointed last month, to rid the agency of corruption.

The President also commended the National Bureau of Investigation for the arrest and prosecution of those tagged in the supposed scam.

"These culprits will have their day of reckoning in court. I hope it happens during the last 3 years of my term," he said.

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