-, 
" 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
S,No, 
2896 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CREATING A MEDICINE BANK 
EXPLANATORY NOTE 
The Constitution, Article 2 provides: 
'15 
AUG 11 
P2:00 
Section 15. The State shall protect and promote the right to health of 
the people and instill health consciousness among them. 
The Constitution, Article 13 likewise provides: 
Section 11. 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 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 regulatory system and undertake appropriate health, manpower 
development, and research, responsive to the country's health needs and 
problems. 
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 
govemment-owned and operated institutional facilities for dispensing to poor patients in 
need of live-saving medicines. I 
J This bill was originally filed in the Fourteenth Congress, Third Regular Session and refiled in the 
Fifteenth Congress, First Regular Session. 
2 


, , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Re:gular Session 
SENATE 
S.No. 
2896 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CREATING A MEDICINE BANK 
·15 1I\li 11 
P2:()O 
RECEIVED BV:=-f 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Medicine Bank Act." 
2 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State 
3 
to protect and promote the right to health of the people. Towards this end, the State shall 
4 
adopt an integrated and comprehensive approach to health development which shall 
5 
endeavor to make essential goods, health, and other social services available to all the 
6 
people at affordable cost. There shall be priority for the needs of the under-privileged, 
7 
sick, elderly, disabled, women, and children. The State shall endeavor to provide free 
8 
medical care to paupers. The State shall also establish and maintain an effective drug 
9 
regulatory system responsive to the country's health needs and problems. 
10 
SECTION 3. Definition of Terms. - In this Act, the term-
11 
(a) 
"Charitable, religious, or nonprofit organization" means any organization 
12 
which is organized and is operating for charitable or religious purposes or to promote 
13 
social welfare, and which distributes pharmaceuticals and health care supplies at no cost 
14 
to needy persons; 
15 
(b) 
"Eligible person" means any eligible person as defined by rules and 
16 
regulations to be issued by the Secretary; 


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


" 
, 
immediate administration to the ultimate user (e.g. an order to dispense a drug to a 
2 
bed patient for immediate administration in a hospital is not a prescription) and as 
3 
defined by law. 
4 
"Secretary" means the Secretary of Health. The Secretary shall also serve 
5 
as the Medicine Bank Director or if he or she is unable to do so, he or she shall authorize 
6 
a licensed pharmacist or another individual with the qualifications and knowledge of 
7 
receiving, distributing, or storing pharmaceuticals, to administer the Medicine Bank; 
8 
SECTION 4. Creation of a Medicine Bank. - There is hereby created within the 
9 
Department of Health a "Medicine Bank." 
10 
(a) 
The purpose of the Medicine Bank is 
to 
collect 
donations 
of 
11 
pharmaceuticals and health care supplies and distribute them to Community Health 
12 
Centers and to various institutional facilities that are government owned and operated for 
13 
distribution by the Community Health Centers and these institutional facilities and 
14 
for dispensing to eligible individuals in need as defined pursuant to this Act. 
IS 
(b) 
The Medicine Bank is an agent for collection and distribution of such 
16 
donations to Community Health Centers and other government owned institutional 
17 
facilities as defined in this Act, but not for purposes of filling individual prescriptions for 
18 
eligible persons. These donations have no actual cash value and cannot be considered 
19 
a liquid asset or inventory. Thus, circumstances affecting the Medicine Bank may 
20 
necessitate the charging of administrative fees for the distribution of materials. 
21 
The Secretary shall determine the fee amount necessary to ensure the continuance 
22 
of the Medicine Bank and shall promulgate these rules and regulations within 
23 
ninety (90) days after the enactment of this Act. The Secretary shall assess these 
24 
fees onto the receiving entities requesting for medicines and supplies and not to eligible 
25 
individuals. Government institutional facilities, as defined in this Act, and any other 
3 


entity receiving medicines and supplies from the Medicine Bank shall not charge or pass 
2 
the cost of these medicines and supplies onto the eligible individual(s). 
3 
(c) 
The Medicine Bank shall ensure that all material, including prescription 
4 
drugs, non-prescription drugs, over-the-counter drugs, medical supplies, and other items 
5 
shall be identified, dated, and transported to the Medicine Bank. Upon receipt by the 
6 
Medicine Bank, all medicines and materials will be examined and inspected carefully by 
7 
the Secretary, or his or her lawful designee, as the Medicine Bank Director, before 
8 
further distribution to the Community Health Centers or to the various institutional 
9 
facilities that are government owned and operated for the lawful dispensing by these 
10 
institutional facilities to eligible individuals. 
11 
(d) 
The Medicine Bank shall ensure that each incoming delivery of prescription 
12 
drugs and other medicines and materials shall be examined to ensure that factory seals are 
13 
intact. Products that are found to be damaged, outdated, deteriorated, misbranded, 
14 
or adulterated, shall be isolated until they can be discarded in accordance with law or 
15 
department guidelines. 
16 
(e) 
The Medicine Bank shall ensure that all donated medications will be 
17 
labeled as required by law. No medication which has been previously dispensed by a 
18 
practitioner to a private citizen will be accepted. Materials received which are not 
19 
prescription medicines such as over-the-counter medicines, home health equipment, 
20 
medical supplies, and any other items, shall also be carefully inspected upon receipt. 
21 
They must be judged fit for use before being distributed or will be properly disposed of in 
22 
accordance with law. The Secretary shall promulgate rules and regulations and guidelines 
23 
he or she deems necessary and appropriate to minimize government liability for 
24 
distribution of medical equipment. Such rules and regulations may require that medical 
25 
equipment and supplies are received with the proper and correct operating manual, 
26 
documentation of maintenance history associated with the equipment. In the instances in 
4 


" . 
which the equipment is new or never used, the Medicine Bank may require that factory 
2 
information be provided. Proper rules and regulations should be established to ensure 
3 
that the government and the Medicine Bank shall not be held liable for problems that 
4 
arise from the use or operation of these items. 
5 
(f) 
The Medicine Banle Director shall ensure that the rooms where the 
6 
Medicine Bank storage is located shall be secure from unauthorized entry. The Medicine 
7 
Bank storage rooms are to be entered through a locked door, and keys are to be held only 
8 
by the Pharmacy Staff and the Medicine Bank Director. The area must be well-lighted 
9 
and the building must be locked and guarded by security personnel at all times. No 
10 
controlled substances will be handled by the Medicine Bank. No clients or patients or 
11 
eligible individuals will come to, or receive donated medicines or materials directly from 
12 
the Medicine Bank. Dispensing of medicines and supplies received from the Medicine 
13 
Bank will take place only at Community Health Centers or mobile health units, or the 
14 
various institutional facilities that are government owned and operated as 
defined 
15 
under this Act for the lawful dispensing by these institutional facilities to eligible 
16 
individuals, and where the pharmaceuticals will be dispensed by licensed practitioners. 
17 
(g) 
All 
drugs, 
including prescription 
drugs 
without 
special 
storage 
18 
requirements, shall be stored according to rules and regulations, or in accordance with 
19 
accepted standards regarding conditions and temperatures for the storage of drugs. 
20 
(h) 
Careful inventory of all donated pharmaceuticals and other materials shall 
21 
be maintained and updated, as necessary, upon receipt and distribution. Medicines, and 
22 
other pharmaceutical supplies and equipment leaving the Medicine Banle shall be double-
23 
checked for damage and proper identity. Because medications are donated to the 
24 
Medicine Bank by many sources, 
including 
local 
doctors' 
offices, 
pharmacies, 
25 
religious and charitable organizations, the Medicine Bank shall ensure that upon receipt, 
26 
each medication will be added to the inventory list with the name and address of 
5 


the donor, date of donation, name of medication, strength, lot number, quantity, and 
2 
expiration date. Full inventories of available medications shall be made available to the 
3 
Community Health Centers and the various institutional facilities that are government 
4 
owned and operated on a regular basis. Community Health Centers and the various 
5 
institutional facilities that are government owned and operated shall then place orders 
6 
with the Medicine Bank for the medicines available at that time. The Medicine Bank 
7 
shall generate a dated record of each distribution to each health center or institutional 
8 
facility. Oldest stock shall be distributed first. Older drugs shall be rotated to the front of 
9 
the shelf as new drugs of the same type are received. 
10 
As distributions of medicine are made to each participating site, receiving staff 
11 
shall check the distribution against a packing list, sign and fax the list back to the 
12 
Medicine Bank Director. Medicines shall be dispensed by licensed practitioners at the 
13 
receiving sites. 
14 
Medications 
close 
to 
expiration 
shall 
be 
distributed 
only 
if the 
15 
requesting health center or institutional facility assures the Medicine Bank staff that the 
16 
medications are for immediate dispensing and shall be consumed by the patient prior 
17 
to the expiration date. All outdated drugs shall be isolated from other drugs and disposed 
18 
of according to applicable laws or regulations. The inventory record for all outdated 
19 
drugs shall note the disposal or return to manufacturer of each item, and such records 
20 
shall be maintained for five (5) years as required by law. 
21 
The Secretary, or his or her designee, the Medicine Bank Director, and the 
22 
appropriate staff, shall conduct a physical inventory several times a year and reconcile 
23 
this with computer inventory records. If a discrepancy is found between the physical and 
24 
computer inventories, the physical count is definitive. At such times, the computer count 
25 
may be adjusted to reflect the true count. A list of changes to the computer inventory 
26 
shall be kept and periodically reviewed. Special attention shall be paid to instances when 
6 


.. 
the same item repeatedly appears to be short, when only expensive items appear to be 
2 
missing, where inventory consistently indicates shortages more than overages, or when a 
3 
pattern of discrepancy emerges at particular times or when particular staff are on duty. At 
4 
these times, an investigation shall be conducted by the Medicine Bank Director with the 
5 
assistance of the National Bureau ofInvestigation. 
6 
(i) 
The Medicine Bank shall comply promptly with all recalls 
and 
7 
withdrawals of prescription drugs and over-the-counter drugs. Notices of recall or 
8 
withdrawal of prescription drugs and over the counter drugs are periodically issued by the 
9 
Department of Health, other government or local government agencies, and 
10 
manufacturers. Additionally, notices of any action undertaken to protect public health 
11 
and safety, may also be issued by responsible parties. When these notices are 
12 
received by the Community Health Centers, the various institutional facilities that are 
13 
government owned and operated, or the Department of Health, the Pharmacist shall 
14 
immediately notify the Director of the Medicine Bank, and any affected medicines or 
15 
other items shall be immediately removed from the inventory and destroyed or returned 
16 
to the supplier. In addition, the Medicine Bank shall notify the health centers and the 
17 
various government institutional 
facilities 
that 
may 
have 
received 
such 
18 
pharmaceutical or other items from the Medicine Bank, that such pharmaceutical or item 
19 
is the subject of a recall or withdrawal. 
20 
The Medicine Bank shall follow disaster plans that are in place for the 
21 
Department of Health or other government agencies. These complete disaster plans shall 
22 
be made available for review in the Medicine Bank Pharmacy and shall be carefully 
23 
followed in the event of an emergency. In addition, the Medicine Bank shall develop and 
24 
implement special procedures which will address the security of the drugs and 
25 
pharmaceuticals stored in the Medicine Bank. 
7 


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


eligible persons unless an injury or illness results to those eligible persons as a result of 
2 
that organization's gross negligence or wanton acts or omissions 
3 
(b) 
Any pharmacy, wholesale prescription drug distributor, pharmaceutical 
4 
company, institutional facility, or practitioner that in good faith provides pharmaceuticals 
5 
and health care supplies to the Medicine Bank without remuneration or expectation of 
6 
remuneration, shall be exempt from civil liability for injuries and damages resulting 
7 
from their acts or omissions in providing pharmaceuticals and health care supplies, 
8 
except for gross negligence, or wanton acts or omissions on the part of the pharmacy, 
9 
wholesale 
prescription 
drug 
distributor, 
pharmaceutical 
company, institutional 
10 
facility, or practitioner. 
11 
12 
13 
(c) 
Any donated or previously dispensed prescription drug: 
(1) 
(2) 
Shall be in its dispensed, unopened, tamper-evident single user unit; 
Shall have remained at all times in the control of a person trained 
14 
and certified by law, rule, or regulation in the storage and administration of drugs 
15 
in institutional facilities; 
16 
(3) 
Shall not have been adulterated, misbranded, or stored under 
17 
conditions contrary to standards established by law, rule, or regulation or the 
18 
product manufacturer; and 
(4) 
Shall be used before the expiration date on the unit. 
19 
20 
(d) 
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, 
22 
or for any provisions regarding the handling of those products, or relieve any health care 
23 
provider from liability arising out of the prescription of such pharmaceuticals or 
24 
health care supplies. 
9 


SECTION 6. Prohibition on Sale of Donated Pharmaceuticals or Health Care 
2 
Supplies. - (a) Other than the Medicine Bank, no person or organization shall sell, or 
3 
offer for sale, any pharmaceutical or health care supply donated or distributed by 
4 
the Medicine Bame under this Act. 
5 
(b) 
Any person who violates this section shall be punished by imprisonment of 
6 
one (1) year and a fine often thousand pesos (I!lO,OOO.OO). 
7 
SECTION 7. Labeling of Donated Pharmaceuticals or Health Care Supplies. -
8 
Any charitable, religious, or nonprofit organization which receives and distributes 
9 
donated pharmaceuticals or health care supplies pursuant to this Act shall affix a label 
10 
upon those items stating that the items are donated and are not for resale and 
11 
stating that they are fit for human consumption or use on the date that they left 
12 
control of the charitable, religious, or nonprofit organization. 
13 
SECTION 8. Implementing Rules and Regulations. - The Secretary of Health shall 
14 
issue the necessary rules and regulations to carry out the objectives of this Act. 
15 
SECTION 9. Separability Clause. - If any provision of this Act is held invalid or 
16 
unconstitutional, the same shall not affect the validity and effectivity of the other 
17 
provisions hereof. 
18 
SECTION 10. Repealing Clause. - All laws, decrees, orders, and issuances, or 
19 
portions thereof, which are inconsistent with the provisions of this Act, are hereby 
20 
repealed, amended or modified accordingly. 
10 


SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days 
2 
after its publication in the Official Gazette or in two (2) newspapers of general 
3 
circulation. 
Approved, 
itmdp7Aug2015 
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