EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

~ Introduced by Representative Rufus B. Rodriguez _

House Bili No, 3808
EXPLANATORY NOTE

Section 15 of Article I! 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 Xi states:

“The State shal! 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 govemment, 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

RUF



EIGHTEENTH CONGRESS: )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

__ Introduced by Representative Rufus B. Rodriguez

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 concemed 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 nongovernment organizations (NGOs) involved in health

services;

(6) A representative of the religious sector;

(7) 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,