NINETEENTH CONGRESS 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
EXPLANATORY NOTE 
Section 15 of Article II of the Constitution states that it is the policy of the State to 
protect and promote the right to health of the people and instill health consciousness among 
them. 
Further, Section 11 of Article XIII states: 
“The State shall adopt an integrated and comprehensive approach to 
health development which shall endeavor to make essential goods, health and 
other social services available to all the people at affordable cost.  There shall 
be priority for the needs of the underprivileged sick, elderly, disabled, women, 
and children.  The state shall endeavor to provide free medical care to 
paupers.” 
The government, through the Department of Health, has already established 
numerous programs to meet the health needs of the people.  However, most of these 
programs remain in paper only due to lack of finance to support their implementation. The 
people continue to suffer from diseases which can be prevented and cured if proper and 
immediate medical attention has been given.  Many children die helplessly even in hospital 
beds due to lack of medicines and other treatment procedures primarily due to poverty.   
This bill aims to address this problem by allowing government hospitals to utilize their 
income for their maintenance and other operating expenses instead of remitting their income 
back to the national treasury. 
In view of the foregoing, the passage of this bill is earnestly sought. 
 RUFUS B. RODRIGUEZ 
April 11, 2023
8:00 am
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NINETEENTH CONGRESS   
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session  
 
) 
HOUSE OF REPRESENTATIVES 
Introduced by Representative Rufus B. Rodriguez 
House Bill No.  _____ 
AN ACT 
AUTHORIZING GOVERNMENT HOSPITALS UNDER THE DEPARTMENT OF HEALTH 
(DOH) TO RETAIN AND UTILIZE ALL THEIR INCOME AND INTEREST DERIVED FROM 
DEPOSITS, FOR MAINTENANCE AND OTHER OPERATING EXPENSES, CAPITAL 
OUTLAYS AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Utilization of Hospital Income - All government hospitals under the Department 
of Health (DOH) are hereby authorized to retain and utilize one hundred percent (100%) of 
their income, which include hospital fees from in-house services and facilities, income derived 
from 
nonpatient-related 
services 
such 
as 
rental 
fees, 
parking 
fees, 
affiliation/medical/professional fees, interview and tour fees, and income derived from interest 
on account deposits, without necessarily remitting the same to the Bureau of Treasury. 
SEC. 2. Trust Fund - A trust fund constituting the income collected shall be established for 
the maintenance and other operating expenses, capital outlays for the purpose of equipment 
and infrastructure projects including construction, improvement and/or renovation of hospital 
facility and for other purposes recommended by the Board of the said hospital: Provided, That 
pharmacy income or proceeds from the sale of drugs and medicines and laboratory income 
shall be considered as a revolving fund and shall be specifically utilized by the hospital 
pharmacy and laboratory for purposes as may be determined by the DOH: Provided, further, 
That no amount of the said income shall be used for payment of salaries and other allowances 
of employees. 
The trust fund shall be deposited in an authorized government depository banks 
recommended by the DOH, the Department of Finance (DOF) and the Department of Budget 
and Management (DBM). 
SEC. 3. Hospital Board - There shall be established a board in each national hospital retained 
under the DOH with the chief or head of the hospital concerned as chairman and the following 
as members: 
(1) A senator;
(2) A congressman of the congressional district where the hospital is located;
(3) A representative of the Philippine Hospital Association (PHA);
(4) A representative of the Philippine Medical Association (PMA);
(5) A representative of nongovernment organizations (NGOs) involved in health
services;
(6) A representative of the religious sector;
(7) A representative of the private sector; and
(8) A representative of the rank and file employees.
The Chairman of the Senate Committee on Health shall choose from among the 
senators who shall represent the Senate as a member of each of the retained national hospital 
health board. 
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The representatives from the PHA, the PMA and NGOs involved in health services, 
religious sector and private sector in the hospital health boards shall be appointed by the 
chairman of the respective health hoards. The representative of the rank and file employees 
shall be voted upon by the entire members of the rank and file. 
The hospital health board shall monitor the collection and determine the utilization of 
the hospital income, and perform such other functions as may be deemed necessary for the 
effective management of the said income. 
The Board shall meet at least once a week or as often as may be necessary. 
A majority of the members of the board shall be present during meetings when income 
utilization proposals are prepared and considered. 
Members thereof who are not government officials or employees shall be entitled to 
necessary traveling expenses and allowances chargeable against the funds. 
 
SEC. 4. Audit and Reports. - Expenditures under this Act shall be subject to existing auditing 
rules and regulations. In addition, the retained hospitals shall submit quarterly reports of 
income and utilization thereof to the DBM and the Committee on Health of both Houses of 
Congress. 
 
SEC. 5. Implementing Rules and Regulations - The DOH, in coordination with the DOF, the 
DBM and the Commission on Audit (COA), shall formulate the necessary rules and regulations 
for the effective implementation of this Act within sixty (60) days from its approval. 
 
SEC. 6. Separability Clause - If any provision of this Act is held invalid by a competent court, 
any other provision not affected thereby shall continue to be valid and effective. 
 
SEC. 7. Repealing Clause - Any laws, presidential decree, executive orders and letters of 
instruction which are inconsistent with any of the provisions of this Act are hereby repealed or 
amended accordingly. 
 
SEC. 8. Effectivity - This Act shall take effect fifteen (15) days after its publication in any 
newspaper of general circulation 
 
Approved,