FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

House Bill No__ 1634

EXPLANATORY NOTE

Section 1, Article || (Declaration of Principles and State Policies) of the
Constitution provides that “The State shall protect and promote the right to health of
the people and instill health consciousness among them.”

This bill seeks to establish a special health fund for the improvement of health
care services in the belief that every individual's health is the concern of society.
The uncertainty which attends most health problems further justifies the intervention
of the State in the provision of adequate health services to every individual.

It has been more than a decade since the enactment of Republic Act (RA) No.
7160, otherwise known as the Local Government Code of 1991, which devolved
health services to local government units. Many problems have been encountered in
the devolution of health functions, however, because local government units were
not prepared and lacked the necessary resources to exercise the new powers
granted them under RA 7160. Local health boards were established without the
corresponding operating resources which have resulted in an unbalanced and
lopsided delivery of quality health care services. There is therefore a need to
establish a special health fund which will provide each local government unit the
resources necessary to support their local quality health care services.

The special health fund shall be apart from the appropriations allotted to
health services by the respective local government units and remittances by the
Philippine Health Insurance Corporation to the local health institutions and shall be
used exclusively for the acquisition of equipment, upgrading of facilities and services,
additional allowances for health workers, training and continuing education of health
workers. The local health boards are likewise mandated to manage the special
health fund.

In view of the foregoing, approval of this bill is highly and earnestly

recommended.
We

MAXIMO B. RODRIGUEZ, JR.
\
RUFUS B. Rt iz


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Maximo B. Rodriguez, Jr. and
Representative Rufus B. Rodriguez

1634

House Bill No.

AN ACT
ESTABLISHING THE SPECIAL HEALTH FUND FOR THE IMPROVEMENT OF
HEALTH CARE SERVICES IN THE LOCAL GOVERNMENT UNITS AND
APPROPRIATING FUNDS THEREFOR.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled,

SECTION. 1. Declaration of Policy. — It is hereby declared the policy of the
State to guarantee that total quality health care is available to the people at
affordable costs by providing additional resources to local government units for the
health needs of their respective constituencies. It is also the policy of the State to
see to it that all citizens be afforded optimum health care services and make the
local governments accountable for the development and improvement of health
services in their respective localities.

SEC. 2. Special Health Fund. — There is hereby established a Special
Health Fund which shall be used exclusively for the following:

a) Upgrading of facilities and equipment of local hospitals, rural health
clinics, lying-in clinics, emergency hospitals, puericulture centers, nursing homes,
hospices and such other health institutions found in cities and municipalities;

b) Hiring, training and continuing education of health workers, caregivers,
volunteer health workers and other ancillary personnel employed by the local
governments in their health institutions;

c) Building of new health institutions such as secondary hospitals,
specialty clinics or care centers in cities and municipalities;

d) Purchase of needed medicines and medical supplies at the lowest
costs in accordance with law; and

e) Establishment of mobile emergency lifelines or quick-response
medical and paramedical teams to respond to disasters, emergencies and other
life-threatening situations in the community.

SEC. 3. Role of the Local Health Boards. — \n addition to the functions
of the Local Health Board as provided for in Section 102 (b) of Republic Act No.
7160, otherwise known as the Local Government Code of 1991, the Local Health
Board shall manage the local special health fund, which shall be remitted to them by
the agencies mentioned in Section 2 of this Act. The special health fund levy shall


Board shall manage the local special health fund, which shall be remitted to them by
the agencies mentioned in Section 2 of this Act. The special health fund levy shall
be automatically retained by the local health board as well as the proceeds from
fines due to violations of health and safety laws collected by the local government
units.

SEC. 4. Funding. — The Special Health Fund shall come from the
following sources:
a) Proceeds from a special levy of 1% from all sales in all local public

and private markets which shall be collected by the local governments and allocated
by the health boards;

b) Proceeds from fines collected for violations of health and safety
regulations from all establishments in cities and municipalities;

c) 5% of revenues derived by the Philippine Charity Sweepstakes Office
(PCSO) from lotto which shall be divided equally among all cities and municipalities;

d) 5% of the net revenues of the Philippine Amusement and Gaming
Corporation (PAGCOR) which shall be allotted equally among all cities and
municipalities;

e) Grants or donations and endowments to cities and municipalities from
private and foreign individuals, as well as, local and international, private and public
associations or foundations.

SEC. 5. Implementing Rules and Regulations. — The Secretary of
Health shall, in coordination with the Secretary of Interior and Local Government,

issue the necessary rules and regulations for the effective implementation of this
Act.

SEC.6. Repealing Clause. - All laws, decrees, orders, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or
modified accordingly.

SEC. 7. Effectivity. - This Act shall take effect fifteen (15) days
following its publication in at least two (2) newspapers of general circulation.

Approved,