REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7658

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

The Veterans Memorial Medical Center (VMMC) was constructed as a gift of the American
people to the Philippines as token of gratitude to the Filipino soldiers who stood by them during
World War II. The 80th Congress of the United States of America passed Public Law 865 in July
8, 1948 which provided $9.4 million for the construction of a hospital facility with the land to be
ipino people. The law was implemented in the country by an agreement
between the U.S. and the Philippines signed by then Pres. Elpidio Quirino and the U.S.
‘Ambassador to the Philippines Myron Cowen.

The provision of the best possible medical care and treatment to eligible veterans and their
dependents is one of the mandated goal of the Veterans Memorial Medical Center. The provision
of the best possible care to our veterans recognizes the patriotic services they have rendered in
times of war and peace.

This bill seeks to provide juridical entity by transforming it into a corporate body in order to
strengthen the hospital's financial operations, reinforce its existence and perpetuation as a first
rate and prestigious medical institution.

The salient provisions of this measure are as follows: a) establishment of the VMMC as a
corporate body with juridical entity; b) creation of the Board of Trustees composed of the
Secretary of National Defense as the Chairperson and the Director of the Hospital as the Vice-
Chairperson; and, c) the appointment of three (3) veterans as members of the Board. It is hoped
that with the approval of this measure, we will be able to provide our veterans, who require
frequent hospitalization for medical attention due to their age, excellent and continued free
medical care.

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

YA. ALEJANO
Representative
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES 5
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No, 7658

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS MEMORIAL
MEDICAL CENTER (VMMC) AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
ARTICLE I
TITLE, POLICY, OBJECTIVES, TERMS AND PRACTICE

SECTION 1. Short Title. - This Act shall be known as "The Veterans Memorial Medical
Center Charter of 2018".

SEC. 2. Declaration of Policy. — \t is hereby declared the policy of the State to help
foster socio-economic security and general well-being of the country’s veterans and retired
military personnel in recognition of their patriotic services in times of war and peace for the
cause freedom and democracy, for the attainment of national unity, independence and socio-
‘economic advancement, and for the maintenance of peace and order in keeping with the goals of
the government and the aspirations of the people.

SEC. 3. Veterans Memorial Medical Center (VMMC) as a Corporate Entity. — There is
hereby created a body corporate, for the benefit primarily of the Filipino veterans, under the
name of the Veterans Memorial Medical Center, hereinafter referred to as the VMMC.

To provide greater flexibility in its operations, the VMMC shall be treated in a manner
consistent with its institutional mission to serve the veterans and shall be autonomous in the

exercise of its jurisdiction.

SEC. 4. Purposes and Objectives of the Hospital. The VMMC shalll have the following
objectives:

(a) Construct, establish, operate and maintain VMMC primarily for the veterans’ welfare;

(b) Stimulate and/ or undertake scientific researches on the biological, demographic,

social, economic, eugenic, physiological aspects of health disorders and abnormalities

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and their control; and gather, compile, present and public the findings of such
researches for public dissemination;

(©) Facilitate and encourage the dissemination and exchange of ideas and information on
the prevention, treatment and control of disease; to arouse, enhance and develop
public interest and awareness on general health and physical fitness;

(d) Encourage and/ or undertake the training of physicians, nurses, medical technologists,
health officers and social workers on the practical and scientific conduct and
implementation and delivery of health services, and related activities;

(©) Assist universities, hospitals and research institutions in their studies of health
problems, to encourage advanced training on matters of, or affecting the physical and
mental well-being of the people;

(®) Encourage the formation of other organizations on the national, provincial, city,
municipal, or barangay level, and to coordinate their various efforts and activities for
the purpose of achieving a more effective and pragmatic approach on the common
problems relative to the objectives herein enumerated; and

(g) Extend medical outreach programs to the general public to help prevent, relieve or
alleviate the innumerable afflictions and maladies of the people especially the poor
and the less fortunate in life, without regard to race, creed, color or political belief.

SEC. 5. Social Responsibility. ~The VMMC is primarily committed to serve the Filipino
veterans as defined in Republic Act No. 6948, as amended by Republic Act No. 7696 and
Republic Act No. 9396.

SEC. 6. Powers. ~ For the attainment of the above purposes and objectives, the VMMC,
as a body corporate, acting through its Board of Trustees, shall have all powers pertaining to a
juridical person, and is therefore authorized to:

(a) acquire and hold in any manner property of whatever nature or description;

(b) enter into contracts;

(©) solicit and receive donations, endowments and funds in the form of contributions
whether in cash or in kind, from both the public and private sectors;

(@) open such accounts in banks and other financial institutions, and to disburse such
funds or invest the same as the Board may direct to accomplish or advance the
purpose or interest of the VMMC;

(©) invite foreign health specialists and other similar experts in the various medical fields
to train the personnel or trainees or residents of the VMMC;

(f) send the VMMC personnel to research institutes, medical institutes or universities for
advance training or observation and to attend international or regional conventions,

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conferences, congresses and seminars, as the Board may deem necessary to
accomplish the purposes and objectives of the VMMC;

(g) enter into such agreements and arrangements with other medical or other institutions,
domestic or foreign, as may be deemed desirable by the Board, for the purpose of
promoting its purposes and objectives;

(h) adopt a set of bylaws, rules and regulations not inconsistent with the law and the
provision hereof to govern the administration and operation of the affairs of the
MMC;

(i) establish branches of the VMMC in other provinces or cities of the Philippines as
may be deemed necessary for greater service coverage to veterans and their
dependents that are living in almost all parts of the country; and

@ perform all such other acts and things as are or may be necessary or incidental for the
accomplishment of the purposes and objectives of the VMMC.

SEC. 7. Board of Trustees. - The VMMC shall be governed by a Board of Trustees,

composed of the following:

(a) Secretary of the National Defense as Chairperson;

(b) Medical Director of the VMMC as Vice Chairperson;

(c) Chairperson of the Senate Committee on Defense and Security;

(@) Chairperson of the House Committee on Veterans Affairs and Welfare;

(©) Secretary of Health;

(®) Administrator, Philippine Veterans Affairs office;

(@) Chairman of the Philippine Veterans Bank;

(h) President of the Veterans Federation of the Philippines; and

() Three (3) appointive members who are veterans and who have distinguished
themselves in their professions or areas of specialisation and have exerted
conspicuous efforts towards the promotion of veterans’ welfare and well-being. They
shall be appointed by the President of the Philippines and shall serve for a term of
three (3) years. In case of vacancy, such vacancy shall be filled in the same manner as
provided for the predecessor, and such appointee shall hold office for the unexpired

term.

SEC. 8. Meeting and Quorum. — The Board of Trustees shall convene at least once a

month. The Chairman of the Board may call a special meeting whenever necessary: Provided,
‘That the members are notified in writing at least three (3) days prior to the said meeting. A
majority of all the members of the Board holding office at the time the meeting is called shall


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constitute a quorum for Board meetings. In no case shall any and all members of the Board
appoint a representative to act on their behalf.

SEC. 9. Medical Director. ~The Medical Director shall be appointed by the President of
the Philippines upon the recommendation of the Board and shall serve for a term of six (6) years.
‘The Medical Director shall act as the Chief Executive Officer of the VMMC and shall perform
the following functions:

(a) organize the VMMC into a streamlined medical institution with admirable facilities

and competent staff to ensure quality service;

(b) appoint members of the professional and administrative staffs and other employees or
personnel of the VMMC through a screening process based strictly on academic
qualifications, experiences and other selection standards; determine the terms and
conditions of their employment, and remove them for cause in accordance with law
and due process;

(©) determine a position qualifications and compensation plan and adjust salaries and
benefits for all personnel of the VMMC, subject to the Compensation and Position
Classification System of Governance Commission for Government Owned and
Controlled Corporations (GOCCs); and

(@) Carry out necessary managerial and administrative functions that may be deemed
necessary or as directed by the Board of Trustees in furtherance of the objectives of
the VMMC set in this Act.

SEC. 10. Secretary. — There shall be a Secretary of the VMMC as appointed by the
Board of Trustees, who shall be the Secretary of the Board and who shall keep such records of
the hospital as may be designated by the Board.

SEC. 11. Hospital Executive Committee. — There shall be an Executive Committee
consisting of the Medical Director as the presiding officer and the Heads of the Administrative,
Medical, Surgical, Rehabilitative, Dental, Psychiatric, Diagnostic and other critical medical
departments. The Committee shall exercise the following functions:

(a) Fix the requirement for admission to the hospital;

(b) Prescribe the rules and regulations as to the discharge of patients;

(©) Adopt internal rules of procedures consistent with the provision of the Charter in
order to promote administrative efficiency in the treatment, rehabilitation and
discharge of patients of the hospital; and

(@) Carry out administrative and managerial task to assist the Medical Director in the
efficient operations and management of the hospital.


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SEC. 12. Personnel and Medical Staff. — The VMMC shall have the autonomy to
employ such employees and medical personnel, or otherwise enter such arrangements with
medical specialists and other consultants as its Board of Trustees shall determine. The personnel
and medical staff of the present VMMC shall automatically be transferred to and absorbed by the
\VMMC as herein created. The incumbent Medical Director shall continue to serve as such for a
period of three (3) years or until his successor shall have been appointed by the President of the
Philippines.

SEC. 13. Assistance from Government Offices. — The VMMC may call upon any
department, bureau, office, agency or instrumentality of the government, including GOCCs, for
such assistance as it may need in the pursuit of its purposes and objectives.

All individuals, entities and institutions are hereby enjoined to render full assistance and
cooperation to VMMC in the accomplishment of its objectives and activities.

SEC. 14. Property of the Medical Center. ~ All existing assets of the VMMC including,
but not limited to, the parcel of land belonging to the private domain of the government situated
in the District, Quezon City and more particularly described in the Bureau of Lands as Lot R.P.-
3-B-4-A, BSD-10352, all its buildings and other properties shall remain with the VMMC as a
corporate entity, including those that may hereafter be given, donated, acquired, transferred or
conveyed to the Medical Center or its branches and instrumentalities by any foreign government,
as well as those given by trust, foundations, corporations or persons (alien or citizen). The
absolute ownership of the Medical Center over these landholdings including those covered by
original and transfer certificates of title in the name of the VMMC is hereby confirmed. Where
the issuance of proper certificates of title is still pending for these landholdings the proper
government office shall expedite issuance thereof within six (6) months from the date of
effectivity of this Act: Provided, That all registration requirement necessary for the issuance of
the said titles have been submitted and complied with.

SEC. 15. Land Grants and Other Real Properties. — The use of properties and proceeds

of such properties shall be governed by the following:

(a) The State shall support the VMMC in the sum or lump sum amount, through general
appropriations and other financial benefits, and in kind, through land grants and
donations and use of other real properties. To carry out the intent of these grants,
income derived from the development of all land grants and real properties shall be
used to further the ends of the hospital, as may be decided by the Board of Trustees in
furtherance of the declared hospital objectives under this Act;

(b) Such parcels of land ceded by law, decree or presidential issuance to the hospital are
hereby declared to be reserved for the purposes intended;


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(©) The Board of Trustees shall plan, design, and approve and/ or cause the
implementation of contracts, mechanisms and financial instruments, such as joint
ventures, long-term leases fully-owned subsidiaries and securitization to give the
hospital the flexibility to generate revenues and other resources from land grants and
other properties: Provided, That such mechanism and arrangements shall sustain and
protect the environment in accordance with law, and be exclusive of the medical core
zone of the hospital: Provided, finally, That such mechanism and arrangements shall
not conflict with the medical or health services and academic mission of the hospital;
and

(@) Any plan to generate revenues and other sources from land grants and other real
properties entrusted to the hospital shall be consistent with the hospital mission and
orientation as a vehicle to extend health services to veterans and their dependents.

SEC. 16. Safeguards on Asset Disposition. — The preservation of the value of the assets
of the hospital shall be of primordial consideration. The exclusive core zone of the VMMC as
defined in Section 14 shall not be sold, transferred, ceded, conveyed, assigned and encumbered.

SEC. 17. Annual Report. — The VMMC shall render to the President of the Philippines
an annual report of its activities and recommendations.

SEC. 18. Effects of the Dissolution. — If, for any reason, the VMMC is dissolved, its
property remaining at the time of such dissolution shall revert to the Republis for disposition in
accordance with law.

SEC. 19. Implementing Rules. — The implementing rules and regulations shall be
formulated within ninety (90) days from the approval of this Act.

SEC. 20. Separability Clause. — If any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions which are not affected thereby shall
continue to be in full force and effect.

SEC. 21. Repealing Clause. — All laws, decrees, executive orders, rules and regulations
or other issuances or parts thereof contrary to or inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.

SEC. 23. Efffeetivity. - This Act shall take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation.

Approved,