Republic of the Philippines 16 OCT 2012:
HOUSE OF REPRESENTATIVES 1

Quezon City, Metro Manila M
Fifteenth Congress Ppa
Third Regular Session
09 October 2012
MEMORANDUM
FOR : The Deputy Secretary General
For Operations

ATTENTION : The Executive Director
Plenary Affairs Bureau

The Service Director
Bills and Index Service

FROM : The Deputy Secretary General
Committee Affairs Department % 2440

We are transmitting six (6) copies of the Committee Report submitted by the
Committee on Health on House Bill No. 66 4 5 in substitution of House Bill No.
4777, entitled

“AN ACT
CONVERTING THE TEN BED CAPACITY DINAIG MUNICIPAL HOSPITAL IN
THE MUNICIPALITY OF DATU ODIN SINSUAT, PROVINCE OF MAGUINDANAO
INTO A FIFTY BED CAPACITY DISTRICT HOSPITAL TO BE KNOWN AS THE
DATU ODIN SINSUAT DISTRICT HOSPITAL, AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 6918, AND APPROPRIATING FUNDS THEREFORE”

For your appropriate action.

ATTY. ARUENE C. DADA-ARI
Deputy Secretary General
for Committee Affairs 9

I


REPUBLIC OF THE PHILIPPINES 1 6 OCT 2012
HOUSE OF REPRESENTATIVES jouty
Quezon City, Manila AS Ay

FIFTEENTH CONGRESS
‘THIRD REGULAR SESSION

committee REPorTNo.__ 2440
‘Submitted by the Committee on Health 16 OCT 2012
Re House Bill No. 6645
Recommending its approval in substitution of House Bill No. 4777

Sponsors Reps. Alfredo D. Marafion Ill and Bai Sandra Sema

Mr. Speaker:

The Committee on Health to which was referred House Bill No. 4777 introduced by Rep. Bai
Sandra Sema, entitled:

“AN ACT

INCREASING THE BED CAPACITY OF THE DINAIG MUNICIPAL HOSPITAL IN THE
MUNICIPALITY OF DATU ODIN SINSUAT, PROVINCE OF MAGUINDANAO, FROM
TEN (10) TO TWENTY FIVE (25) BEDS AND APPROPRIATING FUNDS THEREFOR.”

6645

has considered the same and recommends that the attached House Bill No. a
entitled:

“AN ACT
CONVERTING THE TEN BED CAPACITY DINAIG MUNICIPAL HOSPITAL IN THE
MUNICIPALITY OF DATU ODIN SINSUAT, PROVINCE OF MAGUINDANAO INTO A
FIFTY BED CAPACITY DISTRICT HOSPITAL TO BE KNOWN AS THE DATU ODIN
SINSUAT DISTRICT HOSPITAL, AMENDING FOR THE PURPOSE REPUBLIC ACT
NO. 6918, AND APPROPRIATING FUNDS THEREFORE.”

be approved in substitution of House Bill No. 4777 with Rep. Bai Sandra Sema as author thereof.

Committee on Health

THE HONORABLE SPEAKER
House of Representatives
Quezon City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
Third Regular Session

HOUSE BILL NO. 6645

Introduced by HON. BAI SANDRA SEMA.

AN ACT
CONVERTING THE TEN BED CAPACITY DINAIG MUNICIPAL HOSPITAL
IN THE MUNICIPALITY OF DATU ODIN SINSUAT, PROVINCE OF
MAGUINDANAO INTO A FIFTY BED CAPACITY DISTRICT HOSPITAL TO
BE KNOWN AS THE DATU ODIN SINSUAT DISTRICT HOSPITAL,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6918, AND
APPROPRIATING FUNDS THEREFORE

Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:

SECTION 1. Section 1 of Republic Act No. 6918 is hereby amended to read
as follows:

“SEC. 1. [There shall be established, under the supervision of
the Department of Health, a] THE ten-bed municipal hospital in
the Municipality of [Dinaig) DATU ODIN SINSUAT, Province of
Maguindanao, IS HEREBY CONVERTED INTO A FIFTY (50)
BED CAPACITY DISTRICT HOSPITAL to be known as the
[Dinaig Municipal] DATU ODIN SINSUAT DISTRICT Hospital.”

SEC. 2. Section 2 of the same Act is hereby amended to read as follows:

“SEC. 2. [The amount necessary to carry out the provisions of
this Act shall be charged against the appropriations authorized
for the purpose under the Fiscal Year 1989 General
Appropriations Act. Thereafter, such sums as may be necessary
for the operation and maintenance of the herein hospital shall
be included in the annual General Appropriations Act.] THE
PROVINCIAL GOVERNMENT OF MAGUINDANAO SHALL
CONTINUE TO PROVIDE FUNDING FOR THE DATU ODIN
SINSUAT DISTRICT HOSPITAL. THE SECRETARY OF
HEALTH SHALL INCLUDE IN THE DEPARTMENT'S SUBSIDY
PROGRAM, SUPPORT FOR THE CAPITAL OUTLAY
REQUIREMENTS OF THE SAID DISTRICT HOSPITAL.”

SEC. 3. Section 3 of the same Act is hereby deleted.


SEC. 4. Section 4 of the same Act is hereby renumbered as Section
3 and amended to read as follows:

“SEC. 3. This Act shall take effect [upon its approval] FIFTEEN
DAYS AFTER ITS PUBLICATION IN ANY NEWSPAPER OF
GENERAL CIRCULATION.”

BIAHRON—

Approved,


Republic of the Philippines
Hause of Representatives
Quezon City, Metra Manila

HON. JOSEPH EMILIO A. ABAYA
Congressman, Ist District, Cavite
Chairman, Committee on Appropriations

October 4, 2012

HON. ALFREDO D. MARANON IIL
Chairman
Committee on Health

Dear Chairman Marafion:

This refers to Substitute Bill to House Bill No. 4777, titled “AN ACT CONVERTING THE
TEN BED CAPACITY OF THE DINAIG MUNICIPAL HOSPITAL IN THE MUNICIPALITY
OF DATU ODIN SINSUAT, PROVINCE OF MAGUINDANAO INTO A FIFTY BED
CAPACITY DISTRICT HOSPITAL TO BE KNOWN AS THE DATU ODIN SINSUAT
DISTRICT HOSPITAL, AMENDING FOR THE PURPOSE REPUBLIC ACT NO, 6918,
AND APPROPRIATING FUNDS THEREFORE”

Please be informed that the Committee on Appropriations recommends the approval of
said bill with the following amendment:

Delete Section 2 and in lieu thereof substitute the following:

SEC. 2. [The amount necessary to carry out the provisions of this Act shall be
charged against the appropriations authorized for the purpose under the Fiscal Year
1989 General Appropriations Act. Thereafter, such sums as may be necessary for
the operation and maintenance of the herein hospital shall be included in the
General Appropriations Act] THE PROVINCIAL GOVERNMENT OF
MAGUINDANAO SHALL CONTINUE TO PROVIDE FUNDING FOR THE DATU
ODIN SINSUAT DISTRICT HOSPITAL. THE SECRETARY OF HEALTH SHALL
INCLUDE IN THE DEPARTMENT'S SUBSIDY PROGRAM, SUPPORT FOR THE
CAPITAL OUTLAY REQUIREMENTS OF THE SAID DISTRICT HOSPITAL.

‘YA



REPUBLIC ACT NO. 6918

AN ACT
ESTABLISHING A TEN-BED MUNICIPAL HOSPITAL IN THE MUNICIPALITY OF
DINAIG, PROVINCE OF MAGUINDANAO, TO BE KNOWN AS THE DINAIG
MUNICIPAL HOSPITAL, AND APPROPRIATING FUNDS THEREFORE

Section 1. There shall be established, under the supervision of the Department of
Health, a'ten-bed municipal hospital in the Municipality of Dinaig, Province of
Maguindanao, to be known as the Dinaig Municipal Hospital

Section 2. The amount necessary to carry out the provisions of this Act shall be charged
against the appropriations authorized for the purpose under the Fiscal Year 1989
General Appropriations Act. Thereafter, such sums as may be necessary for the
operation and maintenance of the herein hospital shall be included in the annual
General Appropriations Act.

Section 3. Before the construction of the hospital, the Secretary of Health shall issue a
written assurance that personnel of the hospital will be appointed and that funds for its
maintenance and operation have been appropriated.

Section 4. This Act shall take effect upon its approval.
Approved, March 9, 1990


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

15" Congress
First Regular Session

HOUSE BILL No. 47°77

Introduced By Honorable BAI SANDRA A. SEMA

EXPLANATORY NOTE

The Dinaig Municipal Hospital in the Municipality of Datu Odin Sinsuat,
Province, of Maguindanao was created by Republic Act No. 6918 in 1990. After
more than two decades, its bed capacity remains to be ten (10) in spite of the fact
that the population of the Municipality has grown from 52,370 in 1990,

71,569 in 2000 to 103,765 at present. The average number of hospital patients
taday has gone beyond its ten-bed capacity.

In view of the Constitutional provision guaranteeing the right to health of
the people and instilling health consciousness among them, it is now high time

that the bed capacity of the Dinaig Municipal Hospital be increased from ten (10)
ta twenty-five (25).

Early approval of this legislative measure is earnestly requested.

INDRA SINSUAT A. SEMA
t District of Maguindanao
and Cotabato City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

45" Congress
First Regular Session

HOUSE BiLL_No._ 4777

Introduced By Honorable BAI SANDRA A. SEMA

AN ACT INCREASING THE BED CAPACITY OF THE DINAIG MUNICIPAL
HOSPITAL IN THE MUNICIPALITY OF DATU ODIN SINSUAT, PROVINCE OF
MAGUINDANAO, FROM TEN (10) TO TWENTY FIVE (25) BEDS AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. The bed capacity of the Dinaig Municipal Hospital in the Municipality
of Datu Odin Sinsuat, Province of Maguindanao, is hereby increased from ten (10) to
twenty five (25) beds.

SEC. 2. The amount necessary to carry out the provisions of this Act shall be
ingluded in the General Appropriations Act of the year following its enactment into law.

SEC. 3. This Act shall take effect upon its approval

Approved,


MINUTES OF MEETING OF THE COMMITTEE ON HEALTH HELD ON MARCH 14, 2012 AT
9:00 A.M, CONFERENCE ROOMS 9 AND 10 OF THE RAMON V. MITRA BLDG, HOUSE OF
REPRESENTATIVES, BATASAN, QUEZON CITY.

AUTHORS PRESENT:
4. Hon. Bai Sema House Bil No. 4777
3. Hon. Edwin Olivares House Bill No. 3624
4, Hon, Amado Bagatsing Privilege Speech No. 304

AUTHORS PRESENT:

1. Hon. Alfredo Maraiion III

2. Hon, Edwin Alvarez 13. Hon. Philip Pichay
3. Hon. Romeo Acop 14. Hon. Rogelio Espina

4, Hon, Bernadette Herrera-Dy 15. Hon. Reena Concepcion Obillo
5. Hon. Amado Bagatsing 16. Hon. Alfredo Benitez

6. Hon. Anthony Golez 17. Hon. Imelda Dimaporo

7. Hon, Benhur Salimbangon 18. Hon. Albert Garcia

8. Hon. Peter Unabia 19. Hon. Randolph Ting

9. Hon. Linabelle Ruth Villarica 20. Hon. Bernardo Vergara

10. Hon. Herminia Roman 21. Hon. Vincent Crisologo

11, Hon, Daryl Grace Abayon 22. Hon. Jocelyn Bernos

12. Hon. Bai Sandra Sema 23. Hon. Jun Omar Ebdane

GUESTS/RESOURCE PERSONS IN ATTENDANCE:

1. Dr. Gerado Bayugo — Assistant Secretary, Department of Health
2. Dr. Juanito Taleon - NCFD, Department of Health

3. Ms. Nursia Ismael — Chief Nurse, Dinaig Municipal Hospital

4. Ms, Ma. Theresa Befetel - Nurse I, Bataan General Hospital

5. Dr. Glory Baltazar — OIC Chief of Hospital, Bataan General Hospital

6. Ms. Emerlinda Talento — Bataan Provincial Treasurer

7. Ms. Ma. Concepcion Macalinao — Cashier, Province of Bataan

8. Ms. Amelia Malig - Supervising COA Auditor, Province of Bataan

9. Ms. Josephine Santos — COA Audit Team Member, Province of Bataan
10. Ms. Luz Cantor — Department of Budget and Management


11. Dr. Jose Gonzales — Director, UP-Philippine General Hospital (PGH)
42. Dr. Allan Concejero -PGH

13. Mr. Prospero De Vera — Vice President for Public Affairs, U.P.

14. Atty. Marion Tauli - National Bureau of Investigation

I. CALL TO ORDERIROLL CALL,

Rep. Rep. Alfredo D. Marafion Ill, Chairman of the Health Committee, called the meeting to
order at 9:30 a.m. Upon the motion duly seconded and there being no objection, the calling of
the roll was dispensed with.

ll, APPROVAL OF THE MINUTES

Upon the motion duly seconded and there being no objection, the minutes of February 22, 2012
was approved.

lll. PRELIMINARY REMARKS OF THE CHAIRMAN

The Chairperson informed the Body of the importance of the measures calendared for
deliberation in said meeting. He then proceeded to identify the following items in the agenda:
approval of the draft Committee Report on the amendatory bill to the PhilHealth law, two local
bills, continuation of the inquiry on the Bataan General Hospital and an inquiry on the issues
raised by Rep. A. Bagatsing in a privilege speech relative to the misuse of his Priority
Development Fund by the UP-PGH.

IV. APPROVAL OF THE DRAFT COMMITTEE REPORT

Rep. Anthony Golez, Chairperson of the Health Technical Working Group (TWG), manifested
that he is submitting to the Committee Secretariat a list of additional amendments proposed by
the Committee on Appropriation. Said additional amendments were adopted by the TWG to
further improve the amendatory bill to the PhilHealth law. He then moved that said
amendments be incorporated in the substitute bill. Upon motion duly seconded and there being
No objection, the motion was carried

Thereupon, Rep. Romeo Acop moved to approve the draft Committee Report on the substitute
bill amending Republic Act No. 7875, as amended. Upon motion duly seconded and there
being no objection, the motion was approved

Upon motion of Rep. A. Bagatsing duly seconded, all House Members present in said meeting
were made co-authors of the measure:

V. INITIAL DELIBERATION ON LOCAL HOUSE BILLS NO. 3624 and 4777

Rep. Edwin Olivares, author of House Bill No. 3624, explained that with the population of the
City of Parafiaque based on 2010 census of more than 600,000, it is necessary that a district
hospital under the supervision of the DOH with a budgetary allocation from the national
government be established. He reported that the existing Parafaque Community hospital with
a fifty (60) bed capacity is ill equipped in terms of medical facility, medicine provision and even

2


on matters of emergency cases preparation. To help his constituents in terms of medical
assistance, a portion of his Priority Development Assistance Fund (PDAF) is allocated in
different govemment hospitals in Metro Manila, He gave assurance to DOH that if a district
hospital will be established in his district, a significant portion of his PDAF will be concentrated
and allocated to said hospital. He then urged his colleagues to support the passage of his
proposal.

Dr. Juanito Taleon of the National Center for Health Facilities Development, Department of
Health (DOH) informed the Body that based on their study and from the Citywide Health Plan of
Parafiaque, there is already an existing fifty bed capacity Paranaque Community Hospital with
an occupancy rate of 43%. There is also an existing Las Pifias District Hospital currently being
upgraded from one hundred (100) to two hundred (200) bed capacity. Dr. Taleon stated that
this hospital is just fifty (50) minutes travel time from Paranaque City. Also, he reported that
there are other private hospitals in the area. Furthermore, the proposed bill would require a
technical feasibility study. Given said information, Rep. Olivares asked for the possibility of
converting the existing Parafaque Community Hospital into a district hospital. Dr. Taleon then
assured the author that the DOH will be providing technical assistance in order for the existing
community hospital to be functional as a Second Level Community Hospital.

Upon the motion of Rep. Salimbangon, duly seconded by Rep. Acop and there being no
objection, House Bill No. 3624 was approved with amendments

Rep. Bai Sandra Sema, author of House Bill No. 4777, underscored the need to increase the
bed capacity of the Dinaig Municipal Hospital in the municipality of Datu Odin Sinsuat, province
of Maguindanao. According to her, for over twenty years since its creation and in spite of the
growing population of the municipality, it remains to be a ten bed capacity hospital catering not
only to the people of Datu Odin Sinsuat but also to the residents of other adjoining municipalities
of the province where the Internally Displaced People (IDPs) are residing. She said that with the
increased bed capacity of the hospital from ten (10) to twenty five (25), it shall be upgraded from
First Level Municipal Hospital to Second Level District Hospital. Accordingly, she introduced
amendments to her bill to the effect that instead of merely upgrading the bed capacity of the
hospital, her bill should be titled “An Act Converting The Ten Bed Capacity Dinaig Municipal
Hospital In The Municipality of Datu Odin Sinsuat, province of Maguindanao Into a Twenty Five
Bed Capacity District Hospital To be Known As Datu Odin Sinsuat District Hospital’.

Rep. Salimbangon inquired from the representative of the DOH the ideal hospital bed to
population ratio. In response, Dr. Taleon informed the Body that the national standard hospital
bed to population ratio is 1 bed to 1,000 people which includes private hospitals province wide
and citywide. Rep. Salimbangon then proposed an amendment to the bill by increasing it to fifty
(60) bed capacity instead of twenty five (25), which the author readily accepted

Upon the motion of Rep. Philip Pichay, duly seconded by Rep. Rogelio Espina and there being
no objection, House Bill No. 4777 was approved with amendments.
VI. CONTINUATION OF THE DELIBERATION ON HOUSE RESOLUTION NO. 436

RE: BATAAN GENERAL HOSPITAL
Rep. Herminia Roman, author of House Resolution No 436, explained that the mandate under
R.A No. 8561, the law creating the Bataan General Hospital (BGH) has been affected by the
Memorandum of Agreements (MOA) entered into by the DOH and the Provincial Government of

3


Bataan. She raised the issue of Sec. E.Ona signing the renewal of the Memorandum of
Agreement (MOA) with the local govemment despite his knowledge of the pending resolution
filed in Congress. She also asked why the Provincial Government of Bataan took over the
purchase of drugs, medicines, medical, dental, laboratory, x-ray and other recurring supplies
considering that there is fund allocation for said purposes in the DOH budget under the General
Appropriations Act for the BGH. She then inquired as to where the money intended for the
purchase of medicine has gone.

Responding to such query, Dr. Gerado Bayugo of the DOH said that all DOH retained hospitals
do not have enough funds for their operating expenses. He explained that the amount intended
for the purchase of medicines that was supposedly saved was spent for the other Maintenance
and Other Operating Expenses (MOOE) such as maintenance of facilities, electrical bills and
utilities which somehow provided elbow room for the limited budget of the hospital.

Rep. Roman pointed to the provision of the MOA particularly to the maintenance of the special
account wherein the monthly augmentation and other investments of the province including all
remittances from BGH and Annex shall be deposited. Since such account will be maintained
‘and managed by the Provincial Govemment of Bataan, she then asked where the participation
of the DOH comes in given this set-up, adding that the local goverment is so lucky that by
merely putting twenty five percent (25%) augmentation fund, it is able to control the entire
hospital. She cited the provision in the MOA that stipulates that the DOH shall give utmost
consideration to the recommendations and suggestions of the Provincial Government on
matters that include, but not limited to, personnel movement and capital outlay expenditures.
This provision, she said, serves as proof that the DOH has totally relinquished its control over
the BGH. She also raised the issue why the Provincial Health Officer became the OIC-Chief of
Hospital that manages the operation of the hospital and the one deciding on the amount of
discounts that should be given to the patients contrary to the provision of the MOA which says
that “The Secretary of DOH or his duly authorized representative shall supervise the operation
and administration of the BGH’.

In responding to the issue on discounts, Ma. Theresa Befetel, Nurse II of the BGH, informed
the Body that poor patients ready for discharge could not leave the hospital because they could
not pay the hospital bills. In this type of cases ,they would advise them to go to the Social
Welfare Administration (SWA) office for discount. The SWA would then determine the amount
of discount to be given, although more offen than not, the discounts given are not enough for
the patients to pay their total bill. The SWA would then advice the patients to ask for help from
the Local Government Unit (LGU). Even with the discount from SWA and aid from the LGU,
there are instances when the patients sfill could not afford to pay their bill. This is the time when
the indigents are advised to go to Dr. Gloria Baltazar, BGH OIC Chief of Hospital, to request for
the final discount.

Upon questioning by Rep. Salimbangon, Ms. Befetel said that when the indigent patient could
not afford to pay the hospital bill despite the discounts given, they cannot leave the hospital
unless Dr. Baltazar gives the permission on the condition that the patient would issue the
necessary promissory note. However, she clarified that from the date of discharge until the
actual date when the patient finally leaves the hospital, the billing continues because of
additional services given to the patients. Along this line, Rep. Salimbangon expressed his view
that for more reason the patients could not afford to pay their bill because of the additional
charges


Rep. Roman further claims that there is demoralization among the employees because of the
harassment and the movement of organic personnel by the LGU through the Provincial Health
Officer acting as Officer in Charge. According to her, the income of the BGH is not properly
audited. She then asked under whose name the special account is registered

In response, Ms. Emerlinda Talento, Provincial Treasurer of Bataan, said that the special
account is being maintained under the name of the BGH. Rep. Roman asked for samples of
checks issued by the BGH. Since the Treasurer has no sample checks in her possession, Rep.
Roman requested the Treasurer that the Committee be provided with said checks later. On the
issue of savings, Rep. Roman inquired how the BGH can generate savings for purposes of
complying with the Magna Carta Benefits of Public Health Workers under Republic Act No. 7305
if all the income goes to the special account of the Provincial Goverment.

Responding to such query, Assistant Secretary Luz Cantor of the Depariment of Budget and
Management (DBM) explained that based from the special provision of the General
Appropriations Act (GAA), all DOH supervised and managed hospitals are allowed to retain their
income to augment their maintenance and capital outlay requirements including equipment and
infrastructure projects on top of their actual budget from the GAA, provided that at least twenty
five percent (25%) of said income shall be used to purchase and upgrade hospital equipment
being used directly in the delivery of health services and no part of the retained income shall be
used for the payment of salaries and other allowances. Noting that the answer of the Assistant
Secretary is not responsive to the question of Rep. Roman, Rep. Espina pursued the issue of
whether or not the amount being appropriated by the national goverment for the BGH is
allowable to be deposited in the special account of the Provincial Govemment of Bataan. Ms.
Cantor said that the special provision of the GAA does not allow transferring the income of the
hospital to the Provincial Goverment Rep. Espina also asked the representative of the
‘Commission on Audit (COA) the same question. Ms. Josephine Santos of the COA clarified that
the budget of the BGH coming from the DOH does not go to the special account of the province
of Bataan because BGH maintains two (2) separate books of accounts, one for the general fund
and the other for the special fund.

In conclusion, Rep. Roman said that the MOA resulted in the following: 1) delivery of healthcare
services to indigents became more expensive; 2) operation of the BGH has become
commercialized; 3) limited qualification of patients; and 4) susceptibility to political abuse,
among others.

At this juncture, Rep. Pichay reiterated to the DOH his question during the first hearing
regarding the legality of the MOA. Furthermore, he inquired as to who controls the BGH and
who is now the Chief of Hospital. In response, Dr. Bayugo informed the Body that they sought
the opinion of the DOH Legal Office prior to executing the MOA. He stressed that BGH is being
controlled by the national government and that the present Chief of Hospital was seconded from
the province of Bataan to the DOH.

On the special account, Rep. Pichay inquired whether or not COA has been properly auditing
such account. Ms. Amelia Malig, Supervising COA Auditor of Bataan, said that in so far as the
BGH is concemed, COA does not see any anomalous unrecorded income and that everything is
properly accounted for.

At this juncture, Dr. Gloria Baltazar, BGH OIC Chief of Hospital reads her letter addressed to the
Chairman of the Committee. Portions of her letter is quoted as follows; “The MOA was
conceived and crafted first and foremost, fo improve the quality of health care system provided

5


by the Province to the people of Bataan. As such, dramatic changes and adherence to certain
procedures fo achieve this goal must be instituted. ..Sadly however, there are employees of our
hospital who are resistant to change. These are the same employees whose comfort zones and
whose enterprising nay, imegular activities ‘in the hospital were put to stop due to the
implementation of the MOA. These are the employees, whose nefarious activities were checked
and abated that is why they went berserk... That is why | am eamestly requesting this
Honorable Committee to please be guided by the issues and reasons on why we are here in the
first place, and should not be swayed or taken captive by the malicious innuendos of these
recalcitrant employees, which if we have to analyze, has no material bearing to the issues and
‘matters subject to the inquiry.”

Dr. Gloria Baltazar, through a visual presentation, explained to the Body certain details which
include: ideal operational budget and MOOE requirements of the BGH as against the actual
budget releases from the national govemment; personnel services expenses taken from the
MOOE including subsistence allowance as provided for under the Magna Carta Benefits of
Public Health Workers; summary of retained income of BGH from 2005-20011; summary of
cash collections deposited in the special account; classification of patients; and promissory
notes issued by the patients, among others.

Furthermore. Dr. Gloria Baltazar, BGH OIC Chief of Hospital, underscored the following
improvements of the BGH on account of the partnership between DOH and the local
government unit: : ideal amount of budget needed by the BGH as against the actual budgetary
allocation from the DOH; certain hospital services that form part of the actual hospital bill of the
patient, an increased number of patients served, improvements in hospital facilities and billing
transactions, innovations introduced in the management of the hospital, among others. She
stressed that everything is properly accounted for.

‘The Body decided to suspend further deliberations of said resolution pending the rendition of
legal opinion by an appropriate government agency regarding the legality of said MOA.

Vil. DELIBERATION ON PRIVILEGE SPEECH NO. 307, RE; MISUSE OF PDAF GIVEN TO
THE PHILIPPINE GENERAL HOSPITAL (PGH)

Rep. Amado Bagatsing, author of Privilege Speech No. 307, stated that his constituents have
been denied, deprived and embarrassed when seeking for medical assistance in the Philippine
General Hospital (PGH). He asked from the representative of the PGH to explain where and
how his remaining four million pesos (P4,000,000.00) Priority Development Assistance Fund
(PDAF) channelled to PGH was spent. He stressed that the National Bureau of Investigation
(NBI) found out that based from the audit report of the PGH itself, the ninety thousand pesos
(P90,000.00) guarantee letter issued by his office was charged P2.895 milion pesos. He
wondered why the management of the PGH refused to restore the missing amount despite their
admission that something wrong is going on in the PGH. He wamed the PGH that if nothing will
happen to the inquiry, he will again take the floor and have his colleagues sign a document to
remove Dr, Jose Gonzales as PGH Director including those who have something to do with the
anomaly.

At this juncture, Atty. Marlon Tauli of the NBI confirmed the allegations of Rep. Bagatsing. He
presented to the Body the following initial report on their investigation: Based on the audit report
of the PGH intemal audit, there is discrepancy between the balances of patients’ ledger and
guarantee letter issued by the office of Rep. Bagatsing especially on the pharmacy issuances.

6


The reconciliation of accounts revealed that pharmacy issuances of the hospital have ballooned
considerably. He also said that the hand written guaranty letters appear to have been made not
only by one authorized person but by several others.

Rep. Vincent Crisologo for his part said that he has the same experience. He showed a
guarantee letter issued by his office which was not honored by PGH. He said that the magnitude
of patients coming to PGH should not be used as an excuse for the inefficiency of the PGH.
Both congressmen said that such occurrences happened only during the incumbency of Dr.
Jose Gonzales, the Chief of Hospital

Rep. Bagatsing wanted a definitive answer from the PGH as to how they intend to resolve the
balance of P4M so that his constituents may continue to be served by PGH. In response, Dr.
Gonzales said that PGH continues to serve the constituents of Rep. Bagatsing. However, he
informed the Body that they are looking into ways that the balance of the congressman could be
resolved in such a way that is legally possible and acceptable to COA. He also admitted to the
Body the existence of a syndicate operating within the PGH since 2005 which prompted the
PGH management to implement more stringent measures in screening guarantee letters and
referrals. Dr. Gonzales’s unsatisfactory responses to the queries of Reps. Bagatsing and
Crisologo prompted the Body to suspend further consideration of the matter until PGH could
give a clear solution on the matter.

Vill, ADJOURNMENT

There being no other matter to discuss, the meeting was adjourned at 1:28 p.m

Prepared by:

MA. LOURDES M. SANCHEZ
Acting Compfittee Secretary

Noted by

5

REP. XLFERDO D. MARANON III
Chairberson
Committee on Health