FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
SENATE 
Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
Health research is vital in the improvement of the blueprint and strategies 
for health interventions, policies and service delivery. It encompasses all different 
types of research including basic, fundamental, laboratory, biomedical, clinical, 
applied, epidemiology, psychosocial, population health, health promotion, policy 
development, health economics, health systems and health delivery systems. 
Many of the components of a successful research environment include, among 
others, the need for training, skilled researchers, protection of time, a supportive 
environment, peer review, dissemination and implementation of research results, 
effective alliances and partnerships, and, of course, the financial resources to 
support the activity. 
The health research landscape is composed mainly of national agencies 
such as the Department of Health (DOH) and Department of Science and 
Technology (DOST), the academe, people's organizations, medical societies and 
policy- makers. The implementation of researches is accomplished through a 
health research network composed of public and private research institutions 
working in unison or independently to respond to the national health needs. 
In Republic Act No. 8503, also known as the "Health Research and 
Development Act of 1998" the National Institutes of Health was established as a 
center for excellence for health research and development, mandated to (1) 
promote science and technology research arid development in the field of health: 
(2) promote the, development of study groups and research programs; 
(3)establish mechanism for the dissemination and utilization of research outputs; 
and (4) ensure that the results of health research and development activities are 
utilized to Improve the health of the people. 
Executive order No. 102 mandates the Department of Health to provide 
assistance to local government units. People's organizations, and other members 
of the civic society in effectively implementing programs, projects and services 
that will promote the health and wellbeing of every Filipino, prevent and control 
diseases among populations at risk, protect individuals, families and communities 
exposed to hazards and risks that could affect their health, and treat, manage 
and rehabilitate individuals affected by disease and disability. 
By virtue of Executive Order No. 128, the Department of Science and 
Technology, is mandated to (1) provide central direction, leadership and 
coordination of scientific and technological efforts; (2) formulate and implement 
policies, plans, programs and projects for the development of scientific and 
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technological activities in the public and private, sectors; and (3) ensure that the 
results of scientific and technological activities are properly applied and utilized 
to accelerate economic and social development. 
In the 1999 Center for Economic Policy Research study on the flow of 
funds for health research: and development it was reported that the 
government's budget in 1996 allocated less than 1% for research and 
development resources, only 17% of which was allotted for health research. 
Respondents to the survey claimed that a large chunk of health R & D funds 
came from the private sector (45%) led by private hospitals. However, despite 
increasing support from the private sector, the total health R & D expenditures 
are still far below the World Health Organization recommended level of 5% of 
total health expenditures. 
Our country's ability to ensure optimum health for every Filipino hinges on 
the degree of priority we grant to health research and development (R & D) 
activities, This bill, therefore, seeks to oblige a number of government institutions 
to allocate a particular portion of their gross annual revenue or charge additional 
fees for health research and development activities. 
1 


FOURTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
SENATE 
Introduced by Senator Manny Villar 
AN ACT ESTABLISHING A PHILIPPINE NATIONAL HEALTH RESEARCH 
SYSTEM 
MANDATING 
SELECTED 
GOVERNMENT 
AGENCIES 
TO 
ALLOCATE PERCENTAGES OF THEIR GROSS ANNUAL INCOME OR 
CHARGE 
ADDITIONAL 
FEES 
FOR 
HEALTH 
RESEARCH 
AND 
DEVELOPMENT (R&D) ACTIVITIES 
Be it enacted by the Senate and the House of Representatives in 
Congress assembled: 
SECTION 1. Short Title. This Act shall be known as the "Philippine 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the 
National Health Research System Act of 2008." 
State to: 
(A) protect and promote the right of health of the people and instill health 
consciousness among them; and 
(B) improve the quality of life of every Filipino through health research and 
development initiatives. 
SECTION 3. Definitions. For purposes of this Act, the term: 
(A)"Health" is defined as a state of optimal physical, mental and social 
well-being and ability to function at the individual level, and not merely 
the absence of disease or infirmity. 
(B)"Research and development (R & D) for health" is a global term to 
describe research and development activities undertaken to identify, 
resolve and prevent health problems and improve well-being. This 
encompasses all different types of research including basic, 
fundamental, laboratory, biomedical, clinical, applied, epidemiology, 
psychosocial, population health, health promotion, policy development, 
health economics, health systems and health delivery systems. 
(C)"Philippine National Health Research System (PNHRS) is a framework 
anchored on the principles of Essential National Health Research on 
inclusiveness, 
participation, 
quality, 
equity, 
efficiency 
and 
effectiveness, for the development of a coherent research agenda 
which connect to, and converge with, the wider health, economic, 
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political, educational and science and technology (S & T) systems of 
the country. 
(D)“Health research agenda” describes the overall directions and the 
important general principles, issues and priorities which should be 
addressed in the national plan for health R and D under the National 
Health Research System. The research will be based on a unified 
national health research agenda for the local and national levels. 
(E) “Core agencies” refer to the main national health and health related 
agencies namely: the Department of Health (DOH), the Department of 
Science and Technology-Philippine Council for Health Research and 
Development (DOST-PCHRD), the National Institutes of Health 
(NIH),and the Commission on Higher Education (CHED). 
(F) “Coordinating Agencies” refer to PCHRD-DOST and DOH with PCHRD 
as lead coordinator and DOH as co-coordinator. 
(G)”Philippine National Health Research Fund (PNHRF)” means any 
funds made available by appropriations to the partner institutions for 
attainment of the purposes of the PNHRS. 
(H) “Health research stakeholders” include the national and the local 
private and public health agencies, policy makers, the academe, 
medical societies, people’s organizations, and others which may have 
the roles of health researchers, program administrators and 
beneficiaries. 
( I )  “Management of Fund”-involves the generation, allocation and 
utilization of the Philippine National Health Research Fund, including 
government and non-government sources both domestic and 
international sources. 
Title I 
Philippine National Health Research System 
SECTION 4. Creation of the Philippine National Health Research System.- 
The Philippine National Health Research System (PNHRS) is hereby constituted. 
It shall be made up of all research stakeholders as defined under section 3 (H). 
SECTION 5. Purposes of the PNHRS. The PNHRS aims to improve the 
health status, productivity, and the quality of life of Filipinos by: 
(1) producing new knowledge through research; 
(2) developing a national and global network of researchers, research 
organizations, and other members of the health research community; 
(3) deepening the involvement of stakeholders; 
(4) securing sustainable financing for health research and development; 
(5) building capabilities for health research and development activities; 
(6) encouraging individuals to pursue research as a career; 


(7) inculcating internationally and culturally accepted ethical standards and 
principles especially in researches involving human subjects and 
participants; 
(8) ensuring public access to the information and other outputs generated by 
(9) encouraging the utilization of research results in the form of products, 
the health research systems; and 
technologies, programs and services. 
SECTION 6. Structure and Organization of the PNHRS. The Philippine National 
Health Research System shall have a Governing Council made up of the 
following: 
(1) The Secretary of the Department of Science and Technology; 
(2) The Secretary of the Department of Health; 
(3) The Chair of the Commission on Higher Education; 
(4) The Executive Director of the Philippine Council for Health Research and 
Development; 
(5) The Director of the Health Policy Division and Planning Bureau; 
(6) The Chancellor, UP Manila 
(7) The Executive Director, national Nutrition Council 
(8) The Director, National Institutes of Health 
(9) The Director, Social Services Director-NEDA 
(IO) Industry Representative 
(1 1) NGO Representative 
(12) Representative from Academe 
(13) LGU representative 
(14) The Visayas regional health research system representative; 
(1 5) The Mindanao regional health research system representative; each of 
whom shall serve for a term of two years. 
SECTION 7. Functions of the Governing Council. 
The Governing Council shall: 
(1) set policies and directions for the Philippine National Health 
' (2) periodically review and approve the long-term plans and programs 
Research System. 
of the Philippine National Health Research System. 
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(3) evaluate and approve the National Health Research Agenda that 
(4) identify areas that will serve as the foci of the National Health 
(5) review grants and/or donations from domestic and international 
funding 
agencies. 
It 
shall 
consider 
the 
terms 
of 
the 
grantsldonations; assess the benefits from the grantddonations; 
and evaluate the relevance of the grants terms on over-all health 
research plans and objectives. 
(6) review and approve research projects or programs that have an 
estimated cost of equal to or more than one (1) million pesos. 
(7) approve investments to be made from the Philippine National 
Health Research Fund created under Section 9 of this Act, after 
studying recommendations made by the lnvesfmenf Advisory 
Group, established under Section 15. 
shall be developed and drafted by the Core Agencies. 
Research Agenda. 
SECTION 8. Functions of the Advisory Board. A nine member Advisory 
Board shall provide advice to the PNHRS Governing Council. The Advisory 
Board composed of individuals with broad knowledge and experience in areas 
affecting health and health research. 
SECTION 9. Functions of the Philippine National Health Research 
Committees. The PNHRS shall be composed of six (6) committees namely the 
Committees 
on 
Research 
Management, 
Capacity 
Building, 
Ethics, 
StructurelOrganization, Monitoring and Evaluation, Research Utilization, and 
Resource Mobilization. The Committees shall: 
(1) provide technical and policy advice in setting health research agenda, 
formulating policies and addressing matters related to priority setting, 
proposal review and fundinglfund management, and project monitoring 
and evaluation; 
(2) ensure adherence to universal ethical principles and values on the dignity 
of health research participants; 
(3) provide technical and policy advice in the development and continuous 
supply of quality human and institutional resources for health research; 
(4) provide technical and policy advice in the development and continuous 
supply of quality human and institutional resources for health research; 
(5) provide technical and policy advice to ensure the stewardship and 
leadership of the PNHRS espoused health research that connects to 
health needs and outcomes, policy and action; 
(6) provide technical and policy advice to develop and sustain knowledge 
management systems, communication and advocacy strategies to 
connect research to health needs and outcomes, policy and action; 
5 


(7) provide technical and policy advicelsupport to secure sustainable 
financing, and ensure equity, effective and efficient use of resources for 
health research and development. 
SECTION 10. Roles of the Core Agencies. The Philippine Council on 
Health Research and Development, the National Institutes of Health, the 
Department of Health, and CHED shall serve as the core agencies in the 
implementation of the purposes of this Act: 
(1)The DOST-PCHRD, DOH, NIH and CHED, in accordance with the 
purposes set in Section 4, shall develop through consultation with 
stakeholders the research agenda for the Philippine National Health 
Research System, subject to the Governing Council’s approval. 
(2)The DOST-PCHRD shall approve and if necessary partake in specific 
projects and programs proposed by health research stakeholders defined 
in Sec. 3 (G), provided the cost of each project or program is estimated 
below one (1) million pesos and that they are in accordance with the 
PNHRS research agenda. 
(3) The NIH, CHED and the DOH shall also approve research projects and 
programs proposed by their internal organizations, provided that the 
projectslprograms are in accordance with the PNHRS research agenda. 
(4) DOST-PCHRD, DOH, NIH, and CHED can utilize the sum allotted for 
research projects and programs from the Philippine National Health 
Research Fund stipulated in Title II. 
(5) The four agencies, collectively, shall establish the criteria for stakeholders 
that can apply for the grants. They shall collectively establish the criteria 
for the approval of projects and programs. These criteria shall be 
reflected in the implementing rules and regulation of this Act. 
Title II 
Philippine Health Research Fund 
SECTION 11. Creation of the Philippine National Health Research Fund. 
To pursue the objectives of the PNHRS, a Philippine National Health Research 
Fund is hereby created. 
SECTION 12. Fund Uses. The main objective of this fund is to provide 
sustained financial support for knowledge management and its translation into 
efficient and effective health policies and service delivery; a strengthened health 
care system; and improved health for all Filipinos. It shall ensure that the 
Government invests in health research as part of its commitment to secure the 
well-being of its citizens. Specifically, it shall: 
(1) support quality ethical research and the application of ethical principles to 
(2) create a robust health research environment in the Philippines that will 
attract, develop and keep excellent researchers and provide them with 
the opportunity to contribute to the improvement of people’s health in the 
country and the world; 
health research and development activities; 
6 


(3) fulfill an integrated health research agenda across disciplines, sectors 
and regions that reflects the emerging health needs of Filipinos and the 
evolution of the health system, and supports health policy decision- 
making; 
(4) ensure the promotion research undertakings that meet the highest 
international scientific standards of excellence and ethics and that 
pertains to all aspects of health, including bio-medical research, clinical 
research and research on health systems, health services, the health of 
populations, societal and cultural dimensions of health of populations, 
societal and cultural dimensions of health and environmental influences 
on health; 
(5) address emerging health opportunities, threats and challenges (e.g. avian 
flu, SARS) and accelerate the discovery of cures and treatments and 
improvements to health care, prevention and wellness strategies; 
(6) promote then dissemination of research-based knowledge, technologies, 
and innovations and the application of health research to improve the 
health of Filipinos and, provide support for the participation of Filipino 
health scientists in international collaboration and partnerships in health 
research. 
SECTION 13. Sources of Fund and Method of Collection. 
(1) The Philippine National Health Research Fund will be sourced out from 
a. One percent (1%) of the Philippine Health Insurance Corporation 
gross annual revenue until the PNHRF reaches the sum of 10 
billion pesos; 
b. Five percent @%)of the National Statistics Office's annual revenue 
from birth certificate issuances; 
c. Additional PhpSO for driver's license issuance and renewal fees 
charged by the Land Transportation Office; 
d. Additional PhplOO health research fee charged for license 
application and renewal of all health professional (i.e. physicians, 
nurses, dentists, pharmacists, medical technologists, midwives, 
dieticians, veterinarians, etc.); 
e. One percent (1%) total revenues generated by the Department of 
Environment and Natural Resources from the motor vehicle user's 
charge, and fines and penalties collected under the Clean Air Act 
and the Clear Water Act: 
the following: 
f. Any other appropriations from government when reflected in the 
General Appropriations Act; and 
g. Donations and grants from domestic and international sources 
provided that the receipt thereof does not constitute a breech of 
Philippine law and recognized international treaties. 
(2) All agencies covered under Section 13 Paragraph 1 are hereby directed 
to automatically transfer the amount prescribed by this act to the 
specified account t established by PCHRD as the fund manager. Except 
7 


in cases of force majeure and similar circumstances. The transfer must 
take place during the first quarter of the current fiscal year with the 
previous fiscal year as basis for determining the contribution to the fund. 
This does not preclude they fall within the specifications of this act. 
(3) The rates indicated in Section 13 Paragraph I shall be reviewed and 
updated every five years to accommodate altered economic conditions. 
SECTION 14. Administration of Fund 
(1) All funds under the management and control of the Governing Council 
shall be subject to all regulations covering public funds including auditing 
requirements. 
(2) All official disbursements from the PNHRF shall be managed and 
administered by PCHRD after the approval made by the Governing 
Council as the case may be. 
(3) The Governing Council is authorized to use the interest and returns 
generated by the PNHRF during its first year and 20% of contributions for 
the succeeding years. The balance from the contributions then reverts to 
the PNHRF account. This arrangement shall be in force until such time 
that the PNHRF reaches the ceiling of 10 billion pesos. 
(4) Upon reaching the ceiling of 10 billion pesos, the Governing Council shall 
manage all contributions as they see fit, provided, that such uses fall 
within the purposes of this Act. 
(5) Such sum that shall be deposited in the PNHRF account, following the 
deliberation and concurrence of the Governing Council, can be invested 
in: 
a. Interest-bearing bonds, 
securities, and 
other 
evidence of 
indebtedness of the Republic of the Philippines and other 
evidences to which full faith and credit and unconditional guarantee 
of the Republic of the Philippines is pledged. 
b. In interest-bearing deposits and loans to or securities in any 
domestic bank doing business in the Philippines: Provided, that in 
the case of such deposits, this shall not exceed at any time the 
unimpaired capital and surplus or total private deposits of the 
depository bank, whichever is smaller. Provided, further, that said 
bank shall first have been designated as depository for this purpose 
by the Monetary Board of the Bangko Sentral ng Pilipinas; and 
c. In preferred stocks of any solvent corporation or institution created 
or existing under the laws of the Philippines: Provided, that the 
issuing, assuming, or guaranteeing entity or its predecessor has 
paid regular dividends upon its preferred or guaranteed stocks for a 
period of at least three (3) years immediately preceding the date of 
investment in such preferred or guaranteed stocks. Provided 
further, that if the stocks are guaranteed the amount of stocks so 
guaranteed is not excess of fifty percent (50%) of the amount of the 
preferred common stocks as the case may be of the issuing 
corporation. Provided furthermore, that if the corporation or 
institution has not paid dividends upon its preferred stocks, the 
8 


corporation or institution has sufficient retained earnings to declare 
dividends for at least two years on such preferred stocks and in 
common stocks options. The Board can also invest in common 
stocks of any solvent corporation or institution created or existing, 
under Philippine laws, in the stock exchange with proven track 
record of profitability and payment of dividends over the last three 
(3) years or in the common stocks of a newly organized corporation 
about to be listed in the Philippine stock exchange. Provided, 
finally, that such duly organized corporation shall have been rated 
“A, double “As” or triple “As” by authorized accredited domestic 
rating agencies or in mutual funds including allied investments. 
(6) All investments made with the sue of the PNHRF shall be fully disclosed 
to the public. 
SECTION 15. Creation of the Investment Advisory Group. 
(1) An Investment Advisory Group is hereby established to make 
recommendations on matter of investments from the PNHRF. The group 
shall recommend the method of investment that will yield the highest 
return for the PNHRF. 
(2) The advisory group shall compose of: 
a. A DOH representative to be appointed by the Health Secretary; 
b. A DOST-PCHRD representative to be appointed by the DOST 
Secretary; 
c. A representative from the NIH to be appointed by the NIH Director. 
d. Two reputable economists or market analysts with extensive 
knowledge of the financial and stick markets; 
e. A representative from the Bangko Sentral ng Pilipinas. 
f. Two reputable members of the bar; 
g. A representative from the research community. 
Title 111 
Transitory Provisions 
SECTION 16. Implementing Rules and Regulation. The Coordinating 
Agencies shall draw up the implementing rules and regulations for this Act within 
a year after the effectivity of this Act. 
SECTION 17. Separability Clause. If any provision or part hereof, is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SECTION 18. Repealing Clause. Any law, presidential decree or 
issuance, executive order, letter of instruction, administrative order, rule or 
regulation contrary to or inconsistent with, the provisions of this Act is hereby 
repealed, modified or amended accordingly. 
9 


SECTION 19. Effectivity Clause. This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved. 
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