Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2139

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT
ESTABLISHING A MEDICAL SCHOLARSHIP AND RETURN SERVICE PROGRAM FOR
DESERVING STUDENTS AND APPROPRIATING FUNDS THEREFOR

EXPLANATORY NOTE

The 1987 Constitution provides that: “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” (Article XII, Section 12).

The Philippine Star in its editorial reports that “Several years after some 100 private hospitals
across the archipelago were forced to close shop for lack of health professionals particularly physicians,
the country continues to suffer from a shortage of doctors (19 July 2013). This is the sad situation of
most hospitals especially in rural areas in Visayas and Mindanao. Even prestigious medical institutions
find it difficult to attract fresh graduates to fill up slots for doctors. The government has acknowledged
the reality that, indeed, the country is facing an alarming shortage of medical doctors and other
medical professionals.

Medical studies in the country are too costly that it has become beyond the reach of Filipino
families even those belonging to the higher middle-income class. To make this problem even worse is
the fact that doctors are already taking up nursing and leaving the country for more lucrative jobs
overseas.

This bill seeks to address the shortage of doctors by establishing a medical scholarship and
service program. It shall provide the institutional mechanism for the envisioned sustained human
resource development for the Philippine public health care system. The scholarship program shall
provide the financial and other educational resource support mechanisms for the pursuit of studies in
the field of medicine by deserving and qualified young people.

It is envisioned that a scholar shall undergo higher post-graduate internship in a public health
and medical institution which shall be considered as part of the mandatory public service. After passing
the medical board examination, the scholar shall commence integration into the public health service
system and shall accordingly be given the appropriate rank and salary. The integration into the public
service system shall be required for a period equivalent to at least two (2) years for each year of
scholarship benefits received.

In view of the urgent need to create a steadily expanding pool of medical doctors in order to
enable the government to deliver timely, adequate, competent and affordable medical and health care
services to the people, especially the poor, immediate passage of this bill is earnestly sought.

ANGELINA “HELEN” D.L. TAN, M.D.
4th District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Arst Regular Session

House BILL No, _2138

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT
ESTABLISHING A MEDICAL SCHOLARSHIP AND RETURN SERVICE PROGRAM FOR
DESERVING STUDENTS AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. - This Act shall be known as the “Medical Scholarship and Return
Service Program Act”.

SEC, 2. Declaration of Policy. - It is the policy of the State to protect and promote the right to
health of the people, and to develop its health human resources to meet the health needs of its citizens
and to ensure that the shortage of medical practitioners in the county addressed.

Towards this end, the State shall establish a Medical Scholarship and Return Service Program
that will help deserving medical students pursue medical education and training in the field of health
and medicine who shall eventually render services in government public health offices or government
hospitals in their hometown or in any municipality in their home province or in any underserved
municipality in any province, as part of their integration into the public health and medical service
system. This shall ensure the availability of doctors who will provide quality basic, promotive,
preventive and curative health care services in every municipality in the country, especially the
underserved, remote, economically underdeveloped, distressed, conflict-afflicted, and geographically
disadvantaged areas.

SEC. 3. Establishment of the Medical Scholarship and Return Service Program. ~ There shall be
established a Medical Scholarship and Return Service Program for deserving students in state
universities and colleges (SUCs) or in private higher education institutions (PHEIs) in regions where
there are no SUCs offering medicine: Provided, That the scholarship program shall accept at least one
(1) scholar from each municipality of the country: Provided, further, That only upon determination that
there is no qualified applicant from a certain municipality shall another qualified applicant be
considered, irrespective of domicile: Provided, furthermore, That the applicant has passed the
admission and other qualifying requirements of the SUCs and PHEIs: Provided, finally, That the total
number of scholars per province or municipality shall depend on the number of government physicians
needed for each province or municipality, as determined by the Department of Health (DOH).

SEC. 4. Coverage of the Medical Scholarship and Return Service Program. ~ The Medical
Scholarship and Return Service Program established under this Act shall be made available to deserving
Filipino students who want to pursue a degree in Doctor of Medicine in SUCs or in PHEIs in regions
where there are no SUCs.

The student financial assistance for the Medical Scholarship and Return Service Program shall
include the following:

(@) Free tuition and other school fees;

(b) Allowance for prescribed books, supplies and equipment;
(©) Clothing or uniform allowance;

(d) Allowance for dormitory or boarding house accommodation;
(e) Transportation allowance;


(f)_ Internship fees, including financial assistance during postgraduate internship;
(g) Medical board review fees;

(h) Annual medicinal insurance; and

(i) Other education-related miscellaneous subsistence or living allowances.

SEC. 5. Qualification Requirements. - An applicant for the Medical Scholarship and Return
Service Program shall possess the following qualifications:

(a) Must be a natural-born or naturalized Filipino citizen residing in the Philippines;

(b) Must be a graduating student or a graduate of an appropriate undergraduate program
identified as a prerequisite for a Doctor of Medicine degree, from any higher education
institution (HET) duly recognized by the Commission on Higher Education (CHED) including
the Direct Entrant to the seven (7)-year Integrated Liberal Arts Medicine Program (or
INTARMED Program) of the University of the Philippines who satisfactorily completes the
first two (2) years of the program: Provided, That deserving incoming second year medical
students and those in the higher year levels of the Doctor of Medicine program shall also be
covered under this Act;

(c) Must have passed the entrance examinations and other related requirements for
admission for a Doctor of Medicine degree in the SUC or PHEI where the scholar intends to
enroll, including the INTARMED Program in the University of the Philippines, as well as the
other requirements of the CHED and the DOH; and

(d) Must have obtained a National Medical Admission Test (NMAT) score mandated by the
CHED and the cut-off score required by the SUC or PHEI where the student intends to enroll
in.

SEC. 6. Conditions for the Grant of Scholarship. - Deserving students accepted to the Medical
Scholarship and Return Service Program shall be subject to the following conditionalities:

(a) Must sign an agreement stating the terms and conditions of the scholarship on a form
prescribed by the CHED and the DOH;

(b) Must carry the full load of subjects prescribed per semester by the SUC or PHEI, and
shall, under no circumstance, drop a course which will result in underloading;

(©) Must finish the entire Doctor of Medicine program in the prescribed time frame in the
SUC or PHEI where the scholar is enrolled in, subject to the retention policies of the SUC or
PHEI;

(d) Must undertake postgraduate internship in a DOH-accredited public health facility or
hospital upon graduation from a four (4)-year Doctor of Medicine program, subject to the
Association of Philippine Medical Colleges (APMC) Internship Matching Program: Provided,
That, the graduate of the four (4)-year Doctor of Medicine program must satisfy all the
requirements of the APMC Internship Matching Program: Provided, further. That, for a five
(5)-year Doctor of Medicine program, the scholar enrolled in the SUC or PHEI must
undertake the postgraduate internship in the SUC's or PHEI’s base hospital;

(@) Must take the board examination within a maximum period of one (1) year after
completion of an internship program which may be a postgraduate internship program for
scholars under a four (4)-year Doctor of Medicine program or after completion of internship
as a fifth-year medical student for scholars under a five (5)-year Doctor of Medicine
program; and

(f) Must serve in a government public health office or government hospital in the scholar’s
hometown or, in the absence of a need thereat, in any municipality within the scholar’s
home province, or in any underserved municipality closest to the scholar’s hometown in any
province determined by the DOH as a priority area, for at least eight (8) years or two (2)
years for every scholarship year availed of, which shall be completed within ten (10) years
upon completion of internship for those who have availed of a four (4)-year program, and
twelve (12) years for those who have availed of a five (5)-year program, upon passing the
licensure examination for physicians, which shall be part of the mandatory return service
and integration into the public health and medical service system: Provided, That this
mandatory return service shall be in addition to the required postgraduate internship after
graduating from a four (4)-year Doctor of Medicine program and shall also be in addition to
the return service requirement of the SUC or PHEI: Provided, further, That residency


training shall not be considered as a return service under this provision: Provided, finally,
That the physician shall receive appropriate salaries and other benefits for services rendered
under the mandatory integration into the public health and medical service system.

‘The scholar may be allowed, for valid reasons preventing the enrollment, to defer availing
of the scholarship and file a leave of absence for a period not exceeding one (1) school
year, subject to the guidelines and policies of the concerned SUC and PHEI.

The scholar who fails to pass the licensure examination within one (1) year after
graduation and completion of postgraduate internship and other academic requirements
shall shoulder all the necessary expenses for the succeeding professional licensure
examinations.

SEC. 7. Disqualifications. - The scholar shall repay the full cost of scholarship and related
benefits received, including all the expenses incurred during the participation in the scholarship
program, and the scholarship shall be terminated in case of the following circumstances:

(@)__ If the scholar accepts another scholarship from other government or private agencies or
entities while enjoying the benefits under this Act;

(b) If the scholar fails in forty percent (40%) of the subjects or fails to meet the academic
requirements of the SUCs or PHEIs or to complete the course within the prescribed period
without valid cause as may be determined by the SUC or PHEI, the CHED or the DOH such
as due to absence without notice, reasons of willful neglect or other causes within the
control of the scholar: Provided, That, if the terminated scholar chooses, instead of
repayment of scholarship costs, to work within the government's public health and medical
service system, such as engaging in health-related research work for the government or by
teaching health-related subjects in a public éducational institution or be integrated into the
public health and medical service system for a period equivalent to eight (8) years or the
mandatory length of service that should have been rendered as stipulated in this Act:
Provided, further, "That the alternative return service shall exclude residency training;

(©) __ If the scholar fails to pass the licensure examination for physicians for the second time;
and

(d) If the scholar commits behavioral misconduct in a manner that would bring significant
damage to the HEI, government institution concerned, persons, and the community.

SEC. 8. Mandatory Return Service and Integration of the Scholar into the Public Health and
Medical Service System. — Upon passing the Physician Licensure Examination (PLE) administered by the
Professional Regulation Commission (PRC), the scholar becomes a licensed physician, shall be
integrated into the public health and medical service system, through the DOH, with the appropriate
rank and salary and related benefits. The mandatory return service upon integration into the public
health and medical service system under this Act shall be for a period equivalent to at least eight (8)
years within ten (10) years for those who have availed of a four (4)-year program, and twelve (12)
years for those who availed of a five (5)-year program, upon passing the licensure examination for
physicians, which shall be part of the mandatory service and integration into the public health and
medical service system.

The mandatory return service and integration into the public health and medical service system
under this Act shall be separate and distinct from the return service requirement of the SUCs or PHEIs
and the mandatory postgraduate internship in a DOH-accredited public health facility or hospital,
required by the PRC as a prerequisite for taking the PLE.

SEC. 9. Sanctions. - In the event that a physician who has availed of the Medical Scholarship
and Return Service Program fails or refuses to serve in a government hospital or any local health office
in the scholar’s hometown or in any municipality in the scholar’s home province or in any underserved
municipality in any province, as provided under Section 6(f) hereof, or fails or refuses to comply with
the mandatory integration, as provided in Section 8 hereof, the physician shall be required to pay twice
the full cost of scholarship including other benefits and expenses incurred by reason of participation in
the scholarship program.


In case of nonpayment, as provided in the preceding paragraph, the PRC shall deny the
renewal of the physician's license; Provided, That the abovementioned penalties shall not apply to
physicians who fail to comply with the required return service on account of, or by reason of, severe or
serious illness.

‘SEC. 10. Roles of the CHED. —The CHED shall perform the following functions:

(a) Conduct regular information dissemination of and recruitment to the Medical Scholarship
and Return Service 20 Program in SUCs and PHEIs to ensure that there will be an adequate
number of medical doctors in all the municipalities and provinces;

(b) Review, modify and enhance the medical education curriculum to prepare graduates to
work in community-based health programs, and to function competently when working with
experienced physicians;

(©) Coordinate, together with the SUCs and PHEIs, with the DOH for the integration of the
medical scholar who has passed the PLE into the public health and medical service system;

(d) Formulate, promulgate, disseminate and implement the necessary policies, standards,
guidelines, and rules and regulations for the effective implementation of the Medical
Scholarship and Return Service Program under this Act;

(e) Develop strategies to improve the quality of the Doctor of Medicine program and
implement a system of quality control for the offering of Doctor of Medicine program in
‘SUCs and PHEIs;

(f) Monitor and evaluate existing Doctor of Medicine programs of SUCs and effect the
continuation or closure of programs in accordance with the provisions of Republic Act No.
7722 or the “Higher Education Act of 1994” and other CHED issuances, as applicable;

(g) _ Review and approve or disapprove proposals from SUCs and PHEIs for the offering of
new Doctor of Medicine programs;

(h) Disseminate information on the required percentile cut-off score of SUCs and PHEIs to
guide the student applicants on which school to apply to;

() Require SUCs and PHEIs to submit a tracking, monitoring and assistance proposal; and to
implement and evaluate the tracking, monitoring and assistance program in order to
determine the whereabouts of the medical scholars after graduation from SUCs or PHEIs;

(j) Ensure that the SUCs and PHEIs provide the timely release and accurate distribution of
allowances and other fees to the scholars; and

(k) Recommend to the Department of Budget and Management (DBM) the budget for
implementation of the Medical Scholarship and Return Service Program in SUCs and PHEIs
based on its monitoring and evaluation results.

SEC. 11. Roles of the SUCs and PHEIs. - The SUCs and PHEIs shall perform the following
functions:

(2) Monitor the progress of all scholars in their respective educational institutions, identify
students who have low or failing grades, and counsel them to improve their academic
performance;

(b) Ensure the timely release and accurate distribution of allowances and other fees to the
scholars;

(©) Make an annual report to the CHED on the performance of medical scholars and other
necessary or vital information regarding the Medical Scholarship and Return Service
Program;

(d) Assist the CHED in the conduct of regular information dissemination on, and recruitment
to, the Medical Scholarship and Return Service Program;

(e) Review, modify and enhance the medical education curriculum to prepare the scholars to
work in community-based health programs;

(P) — Coordinate with the DOH in the conduct of an inventory of its trainable personnel who
can be potential beneficiaries of the program;

(a) Coordinate with the CHED, DOH, PRC. other concerned agencies, and local government
units (LGUs) in the integration of the scholar into the public health and medical service
system;

(h) Develop strategies to improve the quality of the Doctor of Medicine program and
implement a system of review and evaluation for quality control for the offering of Doctor of


Medicine program in their respective educational institutions;

(i) Conduct a tracer study on the whereabouts of their respective medical scholars after
graduation from their respective educational institutions and submit the results of the tracer
study to the CHED;

() _ Recommend to the CHED and the DBM the budget necessary to implement the Medical
Scholarship and Return Service Program in their respective institutions, based on their own
monitoring and evaluation of results; and

(k) __ Perform such other functions as the Presidents of the SUC or PHEI may deem necessary
for the st ss of the Medical Scholarship and Return Service Program in their respective
educational institutions.

SEC. 12. Roles of the DOH. - The DOH shall perform the following functions:

(2) _ Determine the number of physicians needed for every municipality or province, as well as
the number of physicians needed in the town or province where the SUC is situated;

(b) Determine the distribution of scholars per municipality or province;

(©) _ Coordinate with the CHED, SUCs, PHEIs and PRC to determine the number of graduates
of the Doctor of Medicine course and passers of the medical board examination;

(4) Provide for the integration of the scholar into the public health and medical service
system, including the necessary number of plantilla positions to accommodate the new
doctors in the provincial hospitals;

() _ Assist the CHED in the conduct of the regular information dissemination on the Medical
Scholarship and Return Service Program, the recruitment of scholar applicants, and the
integration of successful scholars into the public health and medical service system to
ensure the continuous deployment of medical doctors to all provinces, especially in the
underserved, remote, economically underdeveloped, distressed, conflict-afflicted; and
geographically disadvantaged municipalities;

(f) Craft a career pathway for public health practitioners in the DOH and at the local level as
an incentive to the graduates of medicine to enhance their competencies and skills for
career progression;

(9) Coordinate with the LGUs for mandatory integration of doctors/scholars into the public
health and medical service system;

(h) Conduct an inventory of its trainable personnel who can benefit from the program;

(i) Monitor, supervise, and evaluate the performance and length of service of the scholars
integrated into the public health and medical service system;

G) Provide funds for the implementation of the integration program under this Act; and

(K) Recommend to the DBM the budget for the plantilla positions for the doctors to be
integrated into the public health and medical service system, including the determination of
salaries and salary increases.

SEC. 13. Roles of LGUs. - LGUs are mandated to support the integration of the scholar into the
public health and medical service system by performing the following functions:

(a) Ensure that there is a mechanism to provide the necessary support to the integration
program of physicians who will be assigned to the LGU;

(b) Coordinate with the DOH and the physicians to determine the specific health needs or
requirements of the community and provide the necessary assistance, including the
improvement of the health facilities in the municipality and involvement in the research
component of the public health and medical service system;

(©) May maintain a regular counterpart fund to be used for providing the balance of the
scholarship budget for scholars enrolled in PHEIs, subject to availability of funds;

(d) Provide for the board and lodging, travel expenses and other forms of financial assistance
enumerated under Section 4 of this Act, subject to availability of funds, for the scholar
enrolled in the PHEIs located in the municipality under the concerned LGU: Provided, That
the scholar shall serve in the same LGU upon passing the licensure examination. If the
municipal government cannot afford the said expenses, the provincial government shall
shoulder the name: Provided, further, That the said provincial government shall decide in
what municipality the scholar shall eventually serve;

(e) Provide other forms of financial assistance, subject to availability of funds, to support the


integration program of doctors in the LGUs;

(f) Ensure the safety and security of the physicians integrated into the public health and
medical service program;

(9) _ Recommend to the concerned SUC or PHEI any improvement in the implementation of
the Medical Scholarship and Return Service Program;

(hn) Conduct an information dissemination campaign on the Medical Scholarship and Return
Service Program within the municipality or province, with the objective of attracting bright
applicants to the said program;

() Coordinate with the CHED and other government agencies and nongovernmental
organizations involved in the Medical Scholarship and Return Service Program;

() Coordinate with and encourage the active participation of the parents and other family
members of the scholars in the Medical Scholarship and Return Service Program;

(k) Exercise such other powers and perform all other acts and duties which shall assist the
scholar and ascertain the success of the Medical Scholarship and Return Service Program;
and

(Execute and enforce laws, ordinances and regulations which may, directly or indirectly,
have a positive impact on the Medical Scholarship and Return Service Program.

SEC. 14. Appropriations. - The amount necessary to carry out the initial implementation of this
Act shall be charged against the current year’s appropriations of the SUCs and the DOH.

Thereafter, the amount necessary for the continued implementation of the Medical Scholarship
and Return Service Program for deserving students shall be included and subsumed into the
scholarship program of SUCs and CHED in the annual General Appropriations Act.

‘SEC. 15. Joint Congressional Oversight Committee on Medical Scholarship and Return Service
System. - There is hereby created a Joint Congressional Oversight Committee to oversee, monitor and
evaluate the implementation of this Act.

The Oversight Committee shall be composed of five (5) members each from the Senate and
from the House of Representatives, and shall include the following; Chairperson of the Senate
Committee on Education, Arts and Culture; Chairperson of the House Committee on Higher and

Committee on Health; and three (3) members each to be chosen from the membership of the Senate
Committee on Education, Arts and Culture and the House Committee on Higher and Technical
Education by the Senate President and the House Speaker, respectively: Provided, That at least one (1)
member from the respective nominees of the House of Representatives and the Senate shall be chosen
from the Minority party/bloc.

SEC. 16. Five (5)-Year Review of the Number of Scholars to be Admitted. - Every five (6) years
from the effectivity of this Act, the CHED, DOH, SUCs and PHEIs shall determine the number of
scholars to be admitted every school year. The number of physicians needed by the municipality or
province where the SUC or PHET is situated shall be taken into consideration in determining the number
of scholars.

SEC. 17. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity of
this Act, the CHED and the DOH, in coordination with the Philippine Association of State Universities
and Colleges, Coordinating Council of Private Educational Associations, League of Municipalities,
Association of Municipal Health Officers of the Philippines (AMHOP), Nongovernment Community-Based
Health Programs, PRC, DBM, SUCs, PHEIs, APMC, APMC-Student Network and other relevant
stakeholders, shall formulate and issue the rules and regulations to fully implement the provisions of
this Act.

SEC. 18. Separability Clause. — If any part or provision of this Act shall be held unconstitutional
or invalid, the other parts or provisions not affected thereby shall remain in full force and effect.

SEC. 19. Repealing Clause. — All laws, decrees, executive orders, rules and regulations and
other issuances or parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.


SEC. 20. Affectivity. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,