FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
First Regular Session 
SEN~T.E 
S.No. 1·,89 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 15 provides: 
10 
,]Ul 21 
The State shall protect and promote the right to health of the people and 
instill health consciousness among them. 
The Constitution, Article 13, provides: 
Section II. 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. 
Thet:e shall be priority for the needs of the under-privileged, sick, elderly, 
disabled, women, and children. The State shall endeavor to provide free medical 
care to paupers. 
Section 12. The State shall establish and maintain an effective food and 
drug regu latory system and undertake appropriate health, manpower development, 
and research, responsive to the country's health needs and problems. . 
{),j <-16 
i 
'I -'-'" 
According to the World Health Organization, about 10 million people-most of them in 
low- and middle-income countries-die needlessly every year because they do not have access to 
existing medicines and vaccines. In the Philippines alone, millions of poor people fall sick and 
die because they lack access to the diagnostics, vaccines, and medicines needed to identify, 
prevent, or treat debilitating diseases. 
This bill aims to improve the poor's access to medicines by establishing a Medicine 
Bank. The Medicine Bank shall collect donations of pharmaceuticals and health care supplies 
and distribute them to Community Health Centers and to various government-owned and 
1 


operated institutional facilities for dispensing to poor patients III need of live-saving 
d·, 
I 
me !CIlles. 
thw,- 4 ~.~,v-. )y.t:;; 
.MIRIAM DEFtrSOR SANTlIGO 
MfY' 
I This bill was originally filed in the third regular session of the 14th Congress. 
2 


1 
2 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 1789 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CREATING A MEDICINE BANK 
Be it eracted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
3 
SECTION 1. Short Title. - This Act shall be known as the "Medicine Bank Act." 
4 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
5 
protect and promote the right to health of the people. Towards this end, the State shall adopt an 
6 
integrated and comprehensive approach to health development which shall endeavor to make 
7 
essential goods, heal1h, and other social services available to all the people at affordable cost. 
8 
There shall be priority for the needs of the under-privileged, sick, elderly, disabled, women, and 
9 
children. The State shall endeavor to provide free medical care to paupers. The State shall also 
10 
establish and maintain an effective drug regulatory system responsive to the country's health 
11 
needs and problems. 
12 
SECTION 3. Definitions. - In this Act, the term-
13 
(a) 
"Charitable, religious, or nonprofit organization" means any organization which is 
14 
organized and is operating for charitable or religious purposes or to promote social welfare, and 
15 
which distributes pharmaceuticals and health care supplies at no cost to needy persons; 
16 
(b) 
"Secretary" means the Secretary of Health. The Secretary shall also serve as 
17 
the Medicine Bank Director or if he or she is unable to do so, he or she shall authorize a 
1 


1 
licensed pharmacist or another individual with the qualifications and knowledge of receiving, 
2 
distributing, or storing pharmaceuticals, to administer the Medicine Bank; 
3 
(c) 
"institutional facility" means a government owned and operated: (I) Hospital; 
4 
(2) Convalescent home; (3) Nursing home; (4) Extended care facility; (5) Mental institution; 
5 
(6) Rehabilitation center; (7) Health maintenance organization; (8) Psychiatric center; (9) 
6 
Mental retardation center; (10) Penal institution; or (11) Any other government-owned 
7 
organization or facility whose primary purpose is to provide a physical environment for 
8 
patients to obtain health care services or at-home care services, except those places where 
9 
physicians, dentists, veterinarians, osteopaths, podiatrists, or other prescribers are duly licensed 
10 
to engage in exclusively private practice; 
11 
(d) 
"eligible person" means any eligible person as defined by rules and regulations to 
12 
be issued by the Secretary; 
13 
(e) 
"pharmaceuticals and health care supplies" means any medicine prescription or 
14 
nonprescription, excluding all controlled substances listed under appropriate laws; or health care 
15 
supplies such as soap, personal sanitary products, baby formula, dietary supplement, health care 
16 
aids such as thermometers, surgical gloves, or bandages, or any other item which is fit for 
17 
human consumption or external use, before the expiration date stamped on the product; 
18 
(f) 
~'pharmaceutical 
company" 
means 
any 
company 
that 
manufactures 
19 
pharmaceut.icals and health care supplies or distributes such items; 
20 
(g) 
. "pharmacy" means any place in the Philippines where drugs are dispensed and 
21 
pharmaceutical care is provided; 
22 
(h) 
"pharmacist" means an individual licensed to practice pharmacy III the 
23 
Philippines; 
24 
(i) 
"licensed practitioner," for purposes of this Act, means a physician, nurse, 
25 
dentist, pharmacist, pharmacy, hospital, or other person licensed, registered, or otherwise 
26 
permitted by law, to distribute, dispense, administer, or prescribe in accordance with law; 
27 
(j) 
"prescription" means an order for medication which is dispensed to or for an 
28 
ultimate user, but does not include an order for medication which is dispensed for immediate 
2 


1 
administration to the ultimate user (e.g. an order to dispense a drug to a bed patient for 
2 
immediate administration in a hospital is not a prescription) and as defined by law. 
3 
SECTION 4. Creation of a Medicine Bank. - There IS hereby created within the 
4 
Department of Health a "Medicine Bank." 
5 
(a) 
The purpose of the Medicine Bank is to collect donations of pharmaceuticals 
6 
and health car,e supplies and distribute them to Community Health Centers and to various 
7 
institutional facilities that are government owned and operated for distribution by the 
8 
Community Health Centers and these institutional facilities and for dispensing to eligible 
9 
individuals in need as defined pursuant to this Act. 
10 
(b) 
The Medicine Bank is an agent for collection and distribution of such 
11 
donations to Community Health Centers and other government owned institutional facilities as 
12 
defined in this Act, but not for purposes of filling individual prescriptions for eligible 
13 
persons. These donations have no actual cash value and cannot be considered a liquid asset 
14 
or inventory. Thus, circumstances affecting the Medicine Bank may necessitate the charging 
15 
of administrative fees for the distribution of materials. The Secretary shall determine 
16 
the fee amount necessary to ensure the continuance of the Medicine Bank and shall 
17 
promulgate these rules and regulations within ninety (90) days after the enactment of 
18 
this Act. The Secretary shall assess these fees onto the receiving entities requesting for 
19 
medicines and supplies and not to eligible individuals. Government institutional facilities, as 
20 
defined in this Act, and any other entity receiving medicines and supplies from the 
21 
Medicine Bank shall not charge or pass the cost of these medicines and supplies onto the 
22 
eligible individual(s). 
23 
(c) 
The Medicine Bank shall ensure that all material, including prescription drugs, 
24 
non-prescription drugs, over-the-counter drugs, medical supplies, and other items shall be 
25 
identified, dated, and transported to the Medicine Bank. Upon receipt by the Medicine 
26 
Bank, all medicines and materials will be examined and inspected carefully by the Secretary, 
27 
or his or her lawful designee, as the Medicine Bank Director, before further distribution to 
28 
the Community Health Centers or to the various institutional facilities that are government 
3 


1 
owned and operated for the lawful dispensing by these institutional facilities to eligible 
2 
individuals. 
3 
(d) 
The Medicine Bank shall ensure that each incoming delivery of prescription 
4 
drugs and other medicines and materials shall be examined to ensure that factory seals are 
5 
intact. Any products that are found to be damaged, outdated, deteriorated, misbranded, 
6 
or adulterated, shall be isolated until they can be discarded in accordance with law or 
7 
department guidelines. 
8 
(e) 
The Medicine Bank shall ensure that all donated medications will be labeled as 
9 
required by law. No medication which has been previously dispensed by a practitioner to a 
10 
private citizen will be accepted. Materials received which are not prescription medicines such 
11 
as over-the-counter medicines, horne health equipment, medical supplies, and any other items, 
12 
shall also be carefully inspected upon receipt. They must be judged fit for use before being 
13 
distributed or will be properly disposed of in accordance with law. The Secretary shall 
14 
promulgate rules and regulations and guidelines he or she deems necessary and appropriate to 
15 
minimize government liability for distribution of medical equipment. Such rules and 
, 
16 
regulations may require that medical equipment and supplies are received with the proper 
17 
and correct operating manual, documentation of maintenance history associated with the 
18 
equipment, and in the instances in which the equipment is new or never used, the Medicine 
19 
Bank may that factory information be provided. 
Proper rules and regulations should be 
20 
established to ensure that the government and the Medicine Bank shall not be held liable for 
21 
problems that arise from the use or operation of these items. 
22 
(f) 
The Medicine Bank Director shall ensure that the rooms where the Medicine 
23 
Bank storage is located shall be secure from unauthorized entry. The Medicine Bank storage 
24 
rooms are to be entered through a locked door, and keys are to be held only by the Pharmacy 
25 
Staff and the Medicine Bank Director. The area must be well-lighted and the building must be 
26 
locked and guarded by security personnel at all times. No controlled substances will be handled 
27 
by the Medicine Bank. No clients or patients or eligible individnals will come to, or receive 
28 
donated medicines or materials directly from the Medicine Bank. Dispensing of medicines 
29 
and supplies received from the Medicine Bank will take place only at Community Health 
4 


1 
Centers or mobile health units, or the various institutional facilities that are government owned 
2 
and operated as defined under this Act for the lawful dispensing by these institutional 
3 
facilities to eligible individuals, and where the pharmaceuticals will be dispensed by licensed 
4 
practitioners. 
5 
(g) 
. All drugs, including prescription drugs without special storage requirements, 
6 
shall be stored according to rules and regulations, or in accordance with accepted standards 
7 
regarding conditions and temperatures for the storage of drugs. 
8 
(h) 
Careful inventory of all donated pharmaceuticals and other materials shall be 
9 
maintained and updated, as necessary, upon receipt. and distribution. Medicines, and other 
10 
pharmaceutical supplies and equipment leaving the Medicine Bank shall be double-checked 
11 
for damage and proper identity. Because medications are donated to the Medicine Bank by 
12 
many sources, including local doctors' offices, pharmacies, religious and charitable 
13 
organizations, the Medicine Bank shall ensure that upon receipt, each medication will be 
14 
added to the inventory list with the name and address of the donor, date of donation, 
15 
name of medication, strength, lot number, quantity, and expiration date. Full inventories 
16 
of available medications shall made available to the Community Health Centers and the 
17 
various institutional facilities that are government owned and operated on a regular basis. 
18 
Community Health Centers and the various institutional facilities that are government owned 
19 
and operated shall then place orders with the Medicine Bank for the medicines available at 
20 
that time. The Medicine Bank shall generate a dated record of each distribution to each health 
21 
center or institutional facility. Oldest stock shall be distributed first. Older drugs shall be 
22 
rotated to the front of the shelf as new drugs of the same type are received. 
23 
As distributions of medicine are made to each participating site, receiving staff shall 
24 
check the distribution against a packing list, sign and fax the list back to the Medicine Bank 
25 
Director. Medicines shall be dispensed by licensed practitioners at the receiving sites. 
26 
Medications close to expiration shall be distributed only if the requesting 
27 
health center or institutional facility assures the Medicine Bank staff that the medications 
28 
are for immediate dispensing and shall be consumed by the patient prior to the expiration 
29 
date. All outdated drugs shall be isolated from other drugs and disposed of according to 
5 


1 
applicable laws or regulations. The inventory record for all outdated drugs shall note the 
2 
disposal or return to manufacturer of each item, and such records shall be maintained for five 
3 
(5) years as required by law. 
4 
The Secretary, or his or her designee, the Medicine Bank Director, and the appropriate 
5 
staff shall, conduct a physical inventory several times a year and reconcile with computer 
6 
inventory records. If a discrepancy is found between the physical and computer inventories, 
7 
the physical count is definitive. At such times, the computer count may be adjusted to 
8 
reflect the true count. A list of changes to the computer inventory shall be kept and 
9 
periodically reviewed. Special attention shall be paid to instances when the same item 
10 
repeatedly appears (0 be short, when only expensive items appear to be missing, where 
11 
inventory consistently indicates shortages more than overages, or when a pattern of 
12 
discrepancy emerges at particular times or when particular staff are on duty. At these times, 
, 
13 
an investigation shall be conducted by the Medicine Bank Director with the assistance of the 
14 
National Blireau of Investigation. 
15 
(i) 
The Medicine Bank shall comply promptly with all recalls and withdrawals 
16 
of prescription drugs 
and over-the-counter drugs. Notices of recall or withdrawal of 
17 
prescription drugs and over the counter drugs are periodically issued by the Department of 
18 
Health, other government or local government agencies, and manufacturers. Additionally, 
19 
notices of any action undertaken to protect public health and safety, may also be issued by 
20 
responsible parties. When these notices are received by the Community Health Centers, the 
21 
various institutional facilities that are government owned and operated, or the Department of 
22 
Health, the Pharmacist shall immediately notify the Direc(or of the Medicine Bank, and any 
23 
affected medicines or other items shall be immediately removed from the inventory and 
24 
destroyed or returned to the supplier. In addition, the Medicine Bank shall notify the health 
25 
centers and the various government institutional facilities that may have received such 
26 
pharmaceutical or other items from the Medicine Bank, that such pharmaceutical or item is the 
27 
subject of a recall or withdrawal. 
28 
The Medicine Bank shall follow disaster plans that are in place for the 
29 
Department of Health or other government agencies. These complete disaster plans shall be 
6 


1 
made available for review in the Medicine Bank Pharmacy and shall be carefully followed in 
2 
the event of an emergency. In addition, the Medicine Bank shall develop and implement 
3 
special procedures which will address the security of the drugs and pharmaceuticals stored 
4 
in the Medicine Bank. 
5 
Should a crisis occur when the Medicine Bank is closed and no personnel are 
6 
on duty, the Medicine Bank Pharmacist shall be notified immediately by the Medicine 
7 
Bank staff or Department of Health officials. The Medicine Bank Director shall also be 
8 
notified immediately. Either or both of these people shall go to the Medicine Bank 
9 
promptly to assess the damage. 
10 
If there is physical damage that compromises the integrity of the room in which drugs 
11 
are stored, all drugs shall be immediately removed and relocated to a secure place. If the 
12 
room appears to continue to be safe, secure and clean, the Medicine Bank shall remain where 
13 
it is. 
14 
If the crisis causes the temperature to exceed, or go below permitted levels, all drugs 
15 
shall be discarded. Likewise, all medication damaged by water or fire shall be discarded. Any 
16 
container, which appears to be damaged in any way, shall be discarded. All medications 
17 
discarded shall be disposed of properly. 
18 
(k) 
The Medicine Bank office shall establish and maintain a current list of all 
19 
persons responsible for the distribution, storage and handling of prescription drugs. 
20 
A current list of responsible persons, including the Medicine Bank Pharmacist, the 
21 
Medicine Bank Director, and any other necessary persons shall be maintained by the 
22 
Medicine Bank, including a description of each person's duties with regard to 
the 
23 
Medicine Bank, as well as a brief summary of each person's qualifications. This list 
24 
shall be available for review at all times. 
25 
SECTION 5. Exceptions to Liability. -
(a) A charitable, religious, or nonprofit 
26 
organization which in good faith receives pharmaceuticals or health care supplies fit 
27 
for human consumption or external use, and donates them at no charge to the Medicine Bank, 
28 
shall not be liable for any civil damages or criminal penalties resulting from the use 
7 


1 
of the pharmaceuticals or health care supplies distributed or dispensed to eligible persons 
2 
unless an injury or illness results to those eligible persons as a result of that organization's gross 
3 
negligence or wanton acts or omissions 
4 
(b) 
Any pharmacy, wholesale 
prescription drug 
distributor, 
pharmaceutical 
5 
company, institutional facility, or practitioner that in good faith provides pharmaceuticals 
6 
and health care supplies to the Medicine Bank without remuneration or expectation of 
7 
remuneration, shall be exempt from civil liability for injuries and damages resulting from 
8 
their acts or omissions in providing pharmaceuticals and health care supplies, except for gross 
9 
negligence, or wanton acts or omissions on the part of the pharmacy, wholesale 
prescription 
10 
drug distributor, pharmaceutical company, institutional facility, or practitioner. 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
(c) 
(I) 
(2) 
(3) 
(4) 
(d) 
Any donated or previously dispensed prescription drug: 
Shall be in its dispensed, unopened, tamper-evident single user unit; 
Shall have remained at all times in the control of a person trained and 
certified by law, rule, or regulation in the storage and administration of drugs 
in institutional facilities; 
Shall not have been adulterated, misbranded, or stored under conditions 
contrary to standards established by law, rule, or regulation or the product 
manufacturer; and 
Shall be used before the expiration date on the unit. 
This section shall not relieve any organization from any other duty imposed 
21 
upon it by law for the inspection of donated pharmaceuticals or health care supplies, or for 
22 
any provisions regarding the handling of those products, or relieve any health care provider 
23 
from liability arising out of the prescription of such pharmaceuticals or health care 
24 
supplies. 
25 
SECTION 6, Prohibition on Sale of Donated Pharmaceuticals or Health Care 
26 
Supplies. - (a) Other than the Medicine Bank, no person or organization shall sell, or offer for 
27 
sale, any pharmaceutical or health care supply donated or distrib1}ted by the Medicine 
28 
Bank under this Act. 
, 
8 


• 
1 
(b) 
Any person who violates this section shall be punished by imprisonment of one 
2 
(1) year and a fine often thousand pesos (PlO,OOO.OO). 
3 
SECTION 7. Labeling of Donated Pharmaceuticals or Health Care Supplies. - Any 
4 
charitable, religious, or nonprofit organization which receives and distributes donated 
5 
pharmaceuticals or health care supplies pursuant to this Act shall affix a label upon those 
6 
items stating that the items are donated and are not for resale and stating that they are 
7 
fit for human consumption or use on the date that they left control of the charitable, 
8 
religious, or nonprofit organization. 
9 
SECTION 8. Rules and Regulations. - The Secretary of Health shall issue the necessary 
10 
rules and regulations to carry out the objectives of this Act. 
11 
SECTION 9. Separability Clause. - If any provision, or part hereof is held invalid or 
12 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
13 
valid and subsisting. 
14 
SECTIQN 10. Repealing Clause. - Any law, presidential decree or issuance, executive 
15 
order, leiter of instruction, administrative order, rule or regulation contrary to or inconsistent 
16 
with, the provisions of this Act is hereby repealed, modified, or amended accordingly. 
17 
SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
18 
publication in at least two (2) newspapers of general circulation. 
Approved, 
9