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THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
First Regular Session 
1 
OF THE PHILIPPINES 
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Introduced by Senator Franklin M. Drilon 
EXPLANATORY NOTE 
It is the policy of the State to protect and promote the right to 
health of its people. This can be pursued by undertaking appropriate 
health manpower development which is responsive to the country’s 
health needs and problems, Recently, there has been a resurgence of 
heart, kidney, and lung problems which have caused economic 
dislocation and the eventual curtailment of the enjoyment of productive 
and happy life. 
. 
Medical centers such as the Philippine Heart Center, the National 
Lung Center of the Philippines, the National Kidney Center, and the 
Philippine Children’s Medical Center which provide specialized services 
were established individually and organized as government corporations 
which function independently of each other. Their services for patients 
and their teaching and research functions are pursued with minimum 
coordination, if any, among each other. 
There is need therefore, to integrate and rationalize these specialty 
centers by establishing a Medical Center System that will consist of 
existing facilities in order to achieve a more effective and efficient 
implementation of resources and thereby improve the health care 
delivery system in the country. 
Moreover, the proposed bill seeks to establish the Philippine 
Medical Center System to serve as a teaching, training and research 
institution for students of medicine and its allied fields, residents and 
post graduate fellows. 
This Philippine Medical Center shall be developed and maintained 
as a medical tertiary care institution to serve the public. 
Approval of this bill is urgently requested. 
ILON 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
First Regular Session 
1 
OF THE PHILIPPINES 
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Introduced by Senator Franklin M. Drilon 
AN ACT 
ESTABLISHING THE PHILIPPINE MEDICAL CENTER 
SYSTEM, PROVIDING FOR ITS ARMINISTRATION AND 
SUPPORT AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled. 
TITLE I 
GENERAL PROVISIONS 
SECTION 1. Establishment of the Philippine Medical Center System. 
- There is hereby established a Philippine Medical Center System, 
hereinafter referred to as the System, which shall be attached to the 
Department of Health. 
The System shall provide specialized medical 
services, professional and advanced medical training and research. 
I t  
shall make its services and resources available to the public, especially 
the indigents. 
SECTION 2. Component Units. - Without prejudice to Section 7 (b), 
the System shall consist of the following specialized research centers and 
hospitals : 
1. 
The Philippine Heart Center; 
2. 
The Lung Center of the Philippines; 
3. 
The National Kidney Institute; and 
4. 
The Philippine Children's Medical Center. 
SECTION 3. F'urposes and Functions. - The purposes and functions 
of the System are as follows: 
a. 
To formulate, develop and implement an integrated and 
comprehensive specialized medical and health program; 
b. 
To operate specialty medical institutions mentioned in 
Section 2, as well as any other component unit which may 
be established pursuant to Section 7 (b); 
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. 
C. 
d. 
e. 
h. 
i. 
To provide integrated specialty medical services to the 
public; 
To provide medical practitioners, advanced instruction and 
training pertaining to its specialized health programs; 
To 
create 
and implement 
undergraduate, 
internship, 
residency, and post-residency programs for medical students 
and physicians; 
To undertake research in various medical and health fields 
covered by its program; 
To 
train 
physicians, 
nurses, 
medical 
technicians, 
nutritionist-dietitians, pharmacists, other members of the 
medical and other allied medical fields for the purpose of 
implementing its program; 
To engage in a continuing education and information 
campaign on the nature, prevention, treatment and control 
of the various diseases covered by its program; 
To develop, strengthen and enhance the capabilities and 
technical skills for specialized medical care of all regional 
hospitals of the Department of Health; and 
To coordinate with the Philippine Hospital Association, as 
well as with non-governmental organizations, in delivering 
specialty care to the people. 
SECTION 4. The Powers ofthe System. - The System shall have 
the power of a corporation, the powers set forth in this Act and such 
other powers as may be granted to it by other laws. 
TITLE I1 
THE MANAGEMENT OF THE PHILIPPINE MEDICAL CENTER SYSTEM 
SECTION 5. The Board of Trustees. - The government of the 
System shall be vested in the Board of Trustees. I t  shall be the highest 
policy-making body of the System. The administration of the System and 
the exercise of its powers are vested in the Board of Trustees as well as in 
the President of the System insofar as authorized by said Board. 
SECTION 6. Composition ofthe Board o f k s t e e s .  - The Board of 
Trustees shall be composed of the Secretary of Health as the Ex-Officio 
Chairman, the Chairman of the Committee on Health of the Senate, the 
Chairman of the Committee on Health of the House of Representatives, 
the Secretary of Science and Technology, the President of the System, the 
Chairman of the Association of Philippine Medical Colleges, the Directors 
of the component units of the System and three (3) members 
representing the medical and allied medical profession to be appointed 
by the President of the Philippines. 
, 
SECTION 7. Powers of the Board of Trustees. - The Board of 
Trustees shall have the following powers and duties in addition to its 
general powers of administration: 
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a. 
b. 
C. 
d. 
e. 
f. 
g. 
h. 
To receive and appropriate to the ends specified by law such 
sums as maybe provided by law for the support of the 
System; 
To provide for the establishment of additional component 
units; 
To appoint, on recommendation of the Executive Director of 
the 
System, physicians, nurses, nutritionist-dietitians, 
pharmacists, other medical staff members, instructors, 
researchers, other employees of the System; to fix their 
compensation, hours of service, and such other terms and 
conditions as it may deem proper consistent with civil 
service laws, rules and regulations; 
To receive in trust, gifts, legacies and donations of real and 
personal property for the benefit of the System or of any of 
its component units; 
To establish a fund raising program to supplement the funds 
appropriated by the government; 
To prescribe rules for its own government; 
To enact for the administration of the System such 
ordinances and regulations, not contrary to law as are 
consistent with the purposes of the System; and 
To exercise such other purposes as may be necessary for the 
proper discharge of its functions and for the attainment of 
the purposes of the System. 
SECTION 8. The Chairperson. - The Chairperson of the Board of 
Trustees shall preside over all its meetings. In his absence, the following 
shall act as Chairperson in the order herein stated: 
The Executive 
Director of the System, then the other appointive members of the Board 
in the order of seniority of their appointment. 
SECTION 9. Meetings, Quorum. - 
a. 
b. 
Regular meetings of the Board shall be held once a 
month. 
Special meetings may be held as often and whenever 
necessary as may be called by the Chairperson or by 
the President of the System. 
A quorum of the Board of Trustees shall consist of a 
majority of all the members holding office at the time of 
the meeting of the Board is called. 
C. 
SECTION 10. Annual Report. - On or before the first Friday 
following the opening of the regular session of Congress, the Board of 
Trustees shall submit to the President of the Philippines and to Congress 
a detailed report setting forth the progress, conditions and needs of the 
System. 
SECTION 11. The Executive Director ofthe System. - Leadership of 
the System is vested in the Executive Director who shall be appointed by 
the President of the Philippines from among the nominees of the 
System’s Board of Trustees. 
SECTION 12. Terms and Qualifications of the Executive Director. - 
The Executive Director of the System shall serve for a term of three (3) 
years without prejudice to only one reappointment to the same position. 
In case of vacancy in the Office of the Executive Director of the System 
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before the lapse of the term of the incumbent, the person appointed, in 
accordance with Section 11, to fill the vacancy shall serve only for the 
unexpired portion of the term. The Executive Director shall have the 
appropriate management and financial expertise, and preferably an 
extensive exposure or experience in Hospital Administration of a tertiary 
level hospital with training/ teaching facilities. 
SECTION 13. Powers of the Executive Director. - The Executive 
a. To exercise general supervision over the day to day operations 
of the System; 
b. To carry out the policies laid down by the Board of Trustees; 
c. To coordinate the activities of the various component medical 
units of the System; 
d. To prepare an annual report to the Board of Trustees on the 
work of the past year and the needs of the current year. 
He/she shall also present to the Board of Trustees the annual 
budget of 
the System with 
estimates of 
income and 
expenditures ; 
e. To execute and sign in behalf of the System all contracts, deeds 
and other instruments necessary for the proper conduct of 
business of the System; 
f. To exercise such other powers as may be delegated to him/her 
by the Board of Trustees. 
Director of the System shall have the following powers and functions: 
SECTION 14. Hospital Director. - Each component unit of the 
. 
System will have a Director appointed by the System’s Board of Trustees 
for a term of six (6) years. The Director shall be the Executive Director of 
the component unit and shall administer, direct and coordinate all 
activities of the hospital to carry out its objectives in the provision of 
health care, furtherance of education and research, and participation in 
community health programs. 
The Hospital Director shall have an 
extensive experience and training in Hospital Administration and proven 
managerial capability in running a tertiary level hospital (preferably with 
training facilities). 
SECTION 15. Other Officers. - The Board of Trustees may appoint 
such other officers as may be necessary for the operation of the System. 
TITLE I11 
FISCAL AUTONOMY AND ACCOUNTABILIY 
SECTION 16. Fiscal Autonomy. - a. All income, receipts and fees 
accruing to or derived by the System for its operation shall, upon their 
collection, be automatically released to the System. 
b. 
All appropriations for government assistance to the System 
under the annual appropriations law and any supplemental or deficiency 
appropriations shall be paid in lump sum. The System shall submit a 
program of expenditures for the approval of Congress. 
SECTION 17. Auditing. - All accounts and expenses of the System 
shall be audited by the Commission on Audit. 
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TITLE IV 
MISCELLANEOUS PROVISIONS 
SECTION 18. Property ofthe System. - The property of the System 
shall consist of such real and personal property, now owned or reserved 
for, or may hereafter be given, donated, acquired, transferred or conveyed 
to the System by the Philippine Government, its branches and 
instrumentalities, any foreign government, as well as by trusts, 
. 
foundations, corporations, as persons, alien or domestic, in order to 
carry out its purposes and objectives as set forth herein. 
SECTION 19. Budgetary Estimate. - Such sum as may be 
necessary for the implementation of this Act is hereby authorized to be 
appropriated out of any funds in the National Treasury not otherwise 
appropriated. 
Thereafter, the amount needed for the operation and 
maintenance of 
the System shall be included in the Annual 
Appropriations Act. 
SECTION 20. Repealing Clause. - Any provisions of law or rules 
and regulations or any part thereof, inconsistent with the provisions of 
this Act is hereby repealed, amended or modified accordingly. 
SECTION 21. Separability Clause. - If any separable provision of 
this Act be declared unconstitutional, the remaining provision shall 
continue to be in force. 
SECTION 22. Effectivity. - This Act shall take effect fifteen (15) 
days after publication in the Official Gazette or in two (2) newspapers of 
national circulation. 
Approved. 
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