SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Tntroduced by Representative Rufus B. Rodriguez and \“
Representative Maximo B. Rodriguez, Jr. &

3994

House Bill No.
EXPLANATORY NOTE

‘As part of the government's effort to reform the health sector, privatization of
government hospitals has been endorsed ostensibly due to the rising cost of maintenance
and operational expenses. One argument in favor of privatization is that it will allow investors
to infuse additional capital to modernize and upgrade the facilities and equipment of these
government hospitals, more particularly the specialized hospitals such as the Philippine
Heart Center and the National Kidney and Transplant Institute

While it is true that the government is experiencing difficulty in infusing the much-
needed funds to continually upgrade and acquire sophisticated and advanced medical
equipment, it is a reality that majority of the people rely on these government hospitals for
their medical and health needs.

itis almost certain that corresponding increase in medical costs will ensue once the
privatization of government hospitals is pursued. Some people cannot even afford adequate
shelter, food, clothing, and education. Worst, accessible and affordable health care services
will be beyond their reach.

The Constitution mandates that health services shall be available to all people at
affordable cost, It is in this light that this measure seeks to prohibit the privatization of
government hospitals to ensure and guarantee that health care services are affordable and
accessible to all Filipino people

The early passage of this proposed measure is highly recommended.

RUFUS'B. RODRI

<7
he
MAXIMO B. RODRIGUEZ, JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES. )
First Regular Session )

HOUSE OF REPRESENTATIVES

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

House Bill No. 38994

AN ACT
PROHIBITING THE PRIVATIZATION OF GOVERNMENT HOSPITALS

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

SECTION 1. Short Title. — This Act shall be known as the “Government Hospitals’
Privatization Prohibition Act’.

SEC 2. Declaration of Policy. - itis hereby declared the policy of the State to guarantee that
health care services are available, accessible and affordable to all the people by prohibiting
the privatization of government hospitals.

SEC 3. Definition of Terms. — For purposes of this Act, the term
(a) “Secretary” shall refer to the Secretary of the Department of Health; and,
(b) “Government Hospital” shalll refer to a hospital operated and maintained
either partially or wholly by the national, provincial, municipal, or city
government or other political subdivision, or by any department, division,
board or other agency thereof.

SEC 4. Prohibition on privatization of government hospitals. - The Secretary is hereby
prohibited to privatize, sell, or offer for sale all government hospitals.

SEC 5. Implementing Rules and Regulations. - The Secretary shall promulgate the
necessary rules and regulations to implement the provisions of this Act.

SEC 6. Appropriations. — In order to achieve the objectives of this Act, such amount as may
be necessary is hereby authorized to be appropriated from the National Treasury.
Thereafter, the amount necessary for the continuous operation of the hospitals shall be
included in the annual appropriations of the Department of Health,

SEC 7. Separability Clause. - Any portion or provision of this Act that may be declared
unconstitutional or invalid shall not have the effect of nullfying other portions and provisions
hereof as long as such remaining portion or provision can still subsist and be given effect in
their entirety.

SEC 8. 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

SEC 9. Effectivity. - This Act shall take effect fifteen (16) days after its publication in at least
two (2) newspapers of general circulation.

Approved,