FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No._ 3002

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 Xill 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.

RUFYS B. RODRIGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

3002

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 nongovemment organizations (NGOs) involved in
health services;

(6) A representative of the religious sector;

(Z) 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

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,