Stockouts and shortages of essential medicines in hospitals and health facilities are severe and well-known public health issues worldwide, including in the Philippines, with well-known adverse effects for morbidity, mortality, and disease epidemiology. This complicates medicine delivery for healthcare units and makes it challenging to get therapy when medications are unavailable and no substitutes are supplied. The research was conducted in a tertiary government hospital in the Philippines. Respondents included in the survey are personnel involved in the pharmaceutical supply chain for three years. The study assessed the impact of medicine shortages and stockouts on a patient's healthcare and generated policy recommendations for the better supply chain management. The researcher used structured questionnaires for the survey to facilitate data gathering. The statistical analysis was used to develop a policy framework to address the issues. Results showed that changes in the procurement and inventory practices in the hospital must be improved. The hospital is recommended to focus on training and capacity building on the pharmaceutical supply chain stakeholders, strengthen internal pharmacy strategies to make operations more efficient, engineering and administrative support, maximize information technology, maximize available funds, and enhance good governance.