REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 1971

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN Iii

EXPLANATORY NOTE

‘The Constitution mandates that the State shall adopt an integrated and comprehensive
approach to health development which would enable all the citizens to afford basic social
services such as health. Even with the passage of the Quality Affordable Medicine Law,
however, other costs of commodities continue to increase; thus, limiting people's access to
medical care.

Moreover, the devolution of the health services to the local government units via the Local
Government Code of 1991 was a welcome development to the LGUs. However, the function
of delivering health care services to their people met several setbacks such as financial and
budgetary constraints.

This bill, thus, seeks to introduce a cost sharing scheme between LGUs and their residents,
and the Department of Health to institutionalize local health delivery system and solve the
problem with regard to access to medical services. The bill also seeks to establish a Board of
Trustees that shall manage the proposed system. With this proposed measure, it is hoped that
no Filipino will then be denied access to quality and affordable health care.

In view of the foregoing, the immediate passage of this bill is earnestly requested.

HO

MANU! CHAN HiT
Representati
Magdalo Para sa Pilipino Party-List



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 2971

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

AN ACT
ESTABLISHING A COST SHARING SCHEME TO PROVIDE FOR A HOSPITAL
CARE PROGRAM IN LOCAL GOVERNMENT UNITS AND FOR OTHER
PURPOSES

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

SECTION 1. Declaration of Policy. - It is the policy of the State to provide for
adequate health services for all its citizens as mandated by the Constitution. As a basic
service, this function is now a responsibility of Local Government Units (LGUs). As such, all
local government units, as mandated in the Local Government Code of 1991 or Republic Act
No. 7160,are required to render health facilities and to provide access to proper medical care
possible. Local government units shall utilize the powers and authority given to them to
fulfill this mandate including consolidating or coordinating their efforts, services and
resources for purposes commonly beneficial among them, and the provision of budgetary
allocations for health programs and services.

SEC. 2. Establishment of a Cost Sharing Scheme for Hospital Care Program -
Every province or city, in cooperation with the municipalities and barangays, shall establish a
Cost Sharing Scheme for a Hospital Care Program. This scheme shall ensure the access of
their residents to affordable quality and accessible medical care from health facilities and
hospitals. The Hospital Care program will cover all residents of the local government units
under their respective jurisdictions.

SEC. 3. The Cost Sharing Scheme. - Every province or city, municipality and
barangay shall appropriate funds for the Hospital Care Program, which shall be placed in
Trust Fund for this purpose. The contribution of each local government shall be as follows:

City Dwellers (per person) Municipal Residents

Resident

Barangay

Municipal Government ~

Dept. of Health

Provincial Government --

Total Department of Health

Total ~~ P240.00



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The contributions to the Cost Sharing Scheme may be adjusted by the Board of
Trustees who will manage the program according to the needs of its beneficiaries and to
improve the quality of health care services:Provided, however, That any adjustment in the
‘National Government contribution shall be decided by the Department of Health according to
the needs of the respective local government units and the availability of funds.

‘The trust fund shall be used solely for the purposes of the Hospital Care Program and
the improvement of the health facilities. The fund shall be deposited into a bank account and
managed by the Board of Trustees:Provided, however, That the fund shall not be invested in
any financial instrument or undertaking that may jeopardize the feasibility and viability of the
Hospital Care Program.

SEC. 4. Identification Card System. - There is hereby established an ID System
which shall require the issuance of an identification card to every citizen as proof of their
qualification to the program, and which shall contain the following information:

a) residence address;
b) date of birth;

c) blood type;

d) thumb mark;

e) civil status; and
1) picture.

The identification card shall be signed by the barangay treasurer, municipal/ city
treasurer and municipal/ city health officer. Every citizen seeking medical attention shall
present said ID upon admission to any hospital. Said ID shall be accepted as proof of identity
in all government sectors including the COMELEC.

SEC. 5. Creation of the Board of Trustees. - There shall be a Board of Trustees in
every province to manage the Hospital Care Program and the Trust Fund.

a) For provinces, the Board of Trustees shall be composed of the Provincial Governor as
Chairman, Provincial Health Officer as President and Chief Executive Officer, and
the following as members:

1. President of the Provincial Mayor's League;
2. Chairman of the Provincial Councilor's League;
3. Chairman of the Provincial Barangay's League;

4. Vice Governor of the Province;

5. Chairman of the Provincial Health Board; and


6. Four (4) Representatives from four (4) Non-Government Organizations.

b) For Highly Urbanized Cities, the Board of Trustees shall be composed of the City

Mayor as Chairman, City Health Officer as President and Chief Executive Officer,
and the following as members:

1. President of Mayors' League;

2. Chairman of the Councilors’ League;

3. Chairman of the Barangays’ League;

4. Vice Mayor of the City;

5. Chairman of the City Health Board; and

6. Four (4) Representatives from four (4) Non-Government Organizations.

The Non-Government Organization representatives shall be selected by the Provincial

Governor or City Mayor, as the case may be, from NGOs involved in providing health and
social services operating in the province or city. The members of the Board shall have a term
of three (3) years and shall receive reasonable allowances as determined by the Board.

SEC. 6. Powers and Functions of the Board of Trustees. - The Board of Trustees

shall have the following powers and functions:

a) To administer the Hospital Care Program and manage the Trust Fund;

b) To formulate and promulgate policies for the sound administration of the program;

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d)

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To set standards necessary to ensure the quality of hospital service, the proper
utilization of services, viability of the Trust fund and other rules that may be needed
for the successful implementation of the Hospital Care Program;

To formulate the rules and guidelines for the proper availment of the services of the
Hospital Care Program including limits to the amount of service and medicine that
can be availed, amendments to the coverage and other relevant aspects or the

Program,
To amend the contributions to the cost sharing scheme to make it more responsive to
the needs of the Hospital Care Program and other external factors;

To set the guidelines for the accreditation of the health facilities;

To negotiate and enter into contracts with health care institutions, health professionals
and their juridical or natural persons regarding the financing, payments, pricing
design and administrative systems and procedures necessary for the delivery of the
services of the Hospital Care Program;


h

To collect, deposit, administer and disburse the Trust fund in accordance with the
provisions of this Act;

To monitor and inspect the delivery of services to ensure the appropriate delivery of
quality hospital service and make certain the satisfaction of the beneficiaries;

To solicit, receive and manage grants, donations and other forms of assistance;

To organize its office, fix the compensation of and appoint personnel as may be
deemed necessary for the successful implementation of the Hospital Care Program;
and

To submit a report on the financial condition and status of operations for the Hospital
Care Program to the Sangguniang Panlalawigan or Sangguniang Bayan of all
municipalities. The reports shall likewise be posted in every municipality and made
available to the beneficiaries.

SEC. 7. The Hospital Care Program. - There shall be created a Hospital Care

Program in every province or city which shall provide the following services to their
residents:

a) In-patient Hospital Care:
1. room and board;
2. services of health care professionals;
3. diagnostic, laboratory and other medical examinations;
4. use of surgical or medical equipment and facilities; and

5. prescription drugs and biologicals, subject to limitations set forth.

3

Outpatient Care:

1. services of health care professionals;

2. diagnostic, laboratory, and other medical examination services;

3. personal preventive services; and

4. prescription drugs and biologicals, subject to limitations set forth,

The following treatments shall be excluded from the coverage of the Outpatient Care:
a) eyeglasses and optometric services;

'b) dental examinations and dentures;

©) expensive and sophisticated procedures such as CT scans, and the Hospital Care
Program;


4) cosmetic procedures and surgery;

e) non-prescription drug and devices;
f) drug and alcohol abuse and dependency; and

g) other ailments as may be declared by the Board of Trustees.

SEC. 8. Accreditation of Health Facilities. -The Board of Trustees shall ensure that
health facilities shall be available for the Hospital Care Program. All government health
facilities shall participate in the program and in addition, private health facilities shall be
accredited to provide services for the program.

SEC. 9. Enrolment Beneficiaries. - Every barangay shall enroll their residents in the
Hospital Care Program. The barangay captain shall -certify that the person to be enrolled is a
resident of the barangay based on official records such as the municipal civil registry,
community tax certificates and others, The municipal local treasurers in coordination with the
barangay treasurers shall collect the contributions of the residents and remit them to the
provincial or city treasurer.

SEC. 10. The Department of Health. - The DOH shall maintain its subsidy for
indigent patients who are for confinement in specialty hospitals as well as the other hospitals
under its jurisdiction. Said hospitals shall be covered by the cost-sharing scheme.

SEC. 11. Separability Cause. - If any section or provision of this Act is declared
unconstitutional, the rest of the provisions not affected thereby shall continue to be valid.

SEC. 12. Repealing Clause. - All laws, as well as pertinent rules and regulations
thereof, which are inconsistent with the provisions of this Code, are hereby repealed or
amended accordingly.

SEC. 13. Effectivity, - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation

Approved,