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SIXTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'15 
JAN 2() P 4 :25 
SENATE 
____ 
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Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
REVERTING TO THE NATIONAL GOVERNMENT THE DISCHARGE OF BASIC 
HEALTH SERVICES DEVOLVED TO WeAL GOVERNMENT UNITS (LGUs) AND 
REPEALING FOR THE PURPOSE PERTINENT SECTIONS OF REPUlJLIC ACT NO. 
7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Section 15, Article II of the 1987 Constitution declares that the State shall protect and promote 
the right to health of the people and instill health consciousness among them. Apparently 
pursuant to the aforementioned State policy, the Local Government Code of 1991 was enacted to 
introduce, among others, the devolution of the country's health care system from the national 
government to local government units (LGUs). This was based on the postulate that with 
decentralization, citizens would have better access to health services because presumably, the 
local government executives would know where the need for such services is dire and would be 
able to priOritized such needs. Hence, the responsibility for the maintenance of public health, 
including the operation and maintenance of local health facilities, was transferred from the 
Department of Health (DOH) to the Governors of concerned provinces or Mayors of host 
municipalities and cities. 
More than twenty years since its implementation, however, the actual results of this devolution 
experiment have run counter to previous expectations. Assessments of the quality of health 
services since the advent of devolution conducted by independent experts have confirmed the 
"slow decay" in the delivery of health services in some areas of the country (Grundy, et al. 
2003),' Among the problems that hound the devolution of health services include: the low 
priority given by LGUs to health concerns, corruption in the procurement of medicines, and 
denial of benefits of health workers due to inability of LGUs to bear the financial costs of 
increased salaries. 
It is against this backdrop that this measure seeks to repeal certain sections of the Local 
Government Code of the Philippines to revert to the national government the duty to ensure 
delivery of health services to the citizenry. 
In view of the foregoing, immediate approval of this measure is earnestly sought. 
1 Towallis more effective delivery of health services. A position paper of th~ l.itg:a ng mga Barangay (LoB) on the devolution of health 
services 
and 
on 
the rationaJization 
of the 
structure, 
programs 
and 
operations 
of the 
DOH. 
[Accessed 
from 
http; lfWWly ndf.ph/downloads/dccentra~ IEQ%20144-LnB%2ndreft%lOPf).S;t1!W,.n%20PaDeq~df on 12/11/2014j 
1 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
,/II')/iX ,." 
....... 
.....-"' . 
.......... ,---~. 
S. B. No. 
257'7 
Introdnced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
REVERTING TO THE NATIONAL GOVERNMENT THE DISCHARGE OF BASIC 
HEALTH SERVICES DEVOLVED TO LOCAL GOVERNMENT UNITS (LGUs), 
REPEALING FOR THE PURPOSE PERTINENT SECTIONS OF REPUBLIC ACT NO. 
7160, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "Re-Nationalization of Devolved 
2 
Health Services and Facilities Act of 20 15. " 
3 
SEC. 2. Declaration of Policy. - It is the declared policy of the State to protect and 
4 
promote the right to health of the people and instill health consciousness among them. Further, 
5 
the State shall endeavor to make essential goods, health and other services available to all the 
6 
people at affordable cost. 
7 
SEC. 3. Objectives. - The objectives of this Act are: 
8 
a. To prevent the further deterioration of government health services and facilities 
9 
brought about by the devolution of the duty to provide health services and maintain 
10 
medical facilities to local government units (LGUs); 
11 
b. To improve the provision of essential health services to the people, especially the 
12 
sick, the poor and marginalized sector of society; 
13 
c. To improve and uplift the morale, social and economic well-being of previously 
14 
devolved health workers; and 
15 
d. To develop a professional health manpower complement that is responsive to the 
16 
people's health needs and problems. 
1 


1 
SEC. 4. Re-nationalization. - All health services and facilities devolved to the local 
2 
government units (LGUs) are hereby re-nationalized and/or returned to the management, 
3 
supervision and control of the national government. For this purpose, the following provisions of 
4 
the Republic Act No. 7160, otherwise known as The Local Government Code of 1991 are hereby 
5 
expressly repealed: 
6 
a. Section 17 (b) paragraph 1 (ii), paragraph 3 (iv) and paragraph 4 for health services 
7 
only; 
8 
b. Section 102 a (1), a (2), a (3), b (1), b (2), and b (3); 
9 
c. Section 103 (a) and (b); 
10 
d. Section 104; 
11 
e. Section 105; and 
12 
f 
Other related provisions of the Local Government Code that pertain to devolved 
13 
health services and facilities. 
14 
SEC. 5. Authority to use income. - Upon implementation of this Act, re-nationalized 
15 
hospitals and Rural Health Units/Centers are hereby authorized to use the income they derived 
16 
from their operation to improve and upgrade the services they provide; Provided, That the 
17 
supporting financial and work plans are first approved by the Department ofHea1th. 
18 
SEC. 6. Appropriation. - In the year following the enactment of this Act into law, the 
19 
costs of the devolved health services and facilities as of December 31, 1992 shall be deducted by 
20 
the Department of Budget and Management (DBM) from the Internal Revenue Allotment (IRA) 
21 
of the Local Government Units (LGUs) and shall be used as funding source to implement the 
22 
provision of this Act. Any deficiency shall be charged against the Organizational Adjustment 
23 
fund and appropriations saving/reserves. Thereafter, such sums as may be needed for its 
24 
continued implementation shall be included in the annual General Appropriations Act (GAA). 
25 
The IRA ofLGUs in the succeeding years shall be net of the costs of providing, operating 
26 
and maintaining the previously devolved health services and facilities as of December 31, 1992. 
2 


1 
SEC. 7. Implementing Rules and Regulations. - The DOH, in consultation with the 
2 
Department of Interior and Local Government (DILG), shall formulate the Implementing Rules 
3 
and Regulations (IRR) within three (3) months after the enactment of this Act. 
4 
SEC. 8. Repealing Clause. - All laws, presidential decrees, executive orders, and rules 
5 
and regulations, or parts thereof, inconsistent with the provisions of this Act are hereby repealed 
6 
or modified accordingly, 
7 
SEC. 9. Separability Clause. - If, for any reason, any section or provision of this Act is 
8 
held unconstitutional or invalid, the other sections or provisions thereof shall not be affected 
9 
thereby and shall remain in full force and effect. 
10 
SEC. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days following its 
11 
publication in the Official Gazette or in any two (2) newspapers of national circulation, 
Approved, 
3