SEVENTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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s.NoSENff92
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*16 OCT -6 P6 45
H
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Introduced by Senator Richard “ Dick” J. Gordon
EXPLANATORY NOTE 
AN ACT
TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS MEMORIAL 
MEDICAL CENTER (VMMC) AND FOR OTHER PURPOSES
Article XVI, Section 7 of the Constitution explicitly mandates that the State shall 
provide immediate and adequate care, benefits, and other forms of assistance to war 
veterans and veterans of military campaigns, their surviving spouses and orphans. This 
constitutional mandate recognizes the debt of gratitude that we owe our veterans who 
risked life and limb to defend our country -  its people, its land and shores. Attempts to 
repay this debt come in the form of benefits and assistance given to the veterans and 
their surviving spouses and offspring.
On July 8, 1948, pursuant to Public Law 865, the Veterans Memorial Medical 
Center (formerly known as Veterans Memorial Hospital) was established which provided 
$9.4 million for the construction of a hospital facility with the land to be donated by the 
Philippine government.1 On November 20, 1955, the VMMC was created to provide 
quality hospitalization, medical care and treatment to Filipino veterans who suffered 
from service-connected disabilities arising from their services with the United States 
Army Forces in the Far East (USAFFE), recognized guerilla units, Philippine Scouts, 
and Philippine Commonwealth Army, which was later extended to AFP retirees and 
their dependents.2
Through the years, the VMMC continues to play its very important role -  to 
provide medical care, treatment and hospitalization to the veterans and their 
dependents.3 However, despite its having a critical mandate, it only gets a very small 
portion of the budget pie. 
In 2016, the VMMC was appropriated only with
P1,068,085.00.4
This bill seeks to modernize VMMC and turn it into a prime state hospital by 
providing it with juridical and corporate personality to preserve the viability of the 
medical institution and to render premium medical services to the veterans, most of 
whom are in their twilight years, and their dependents 
comprehensive health
care system characterized by excellence, dedication.4 ^ -c 6mr
HARD “
CK” J. GORDON
Senator
1 VMMC History. Retrieved from http://vmmc.gov.Dli/index.plip/hoine/vmmc-historv on 26 September 2016.
2 VMMC Background. Retrived from littp://vmmc.gov.pti/index.phD/home/about-vmmc on 26 September 2016.
3 Ibid.
4 National Expenditure Program 2017. Volume II, p.477.


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
S.N0SENfi^2
(S ffirt of the45fci,n ft.n y
'16 OCT-6 P6 *45
Introduced by Senator Richard “ Dick” J. Gordon
AN ACT
TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS MEMORIAL 
MEDICAL CENTER (VMMC) AND FOR OTHER PURPOSES
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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 “The Veterans 
Memorial Medical Center Charter of 2016.”
Sec. 2. Declaration o f Policy. - It is hereby declared to be the policy of the State 
to help foster the socioeconomic security and well-being of the country’s veterans and 
retired military personnel in recognition of their patriotic services in times of war and 
peace for the cause of freedom and democracy: for the attainment of national unity, 
independence and socioeconomic advancement; and for the maintenance of peace and 
order in keeping with the goals of the government and aspirations of the people.
Sec. 3. Veterans Memorial Medical Center (VMMC) as a Corporate Entity. -
There is hereby created a body corporate, for the benefit primarily of the Filipino 
veterans, under the name of the Veterans Memorial Medical Center, hereinafter referred 
to as the VMMC.
To provide greater flexibility in its operations, the VMMC shall be treated in a 
manner consistent with its institutional mission to serve the veterans and shall be 
autonomous in the exercise of its jurisdiction.
Sec. 4. Purposes and Objectives o f the Hospital. - The VMMC shall have the 
following objectives:
a) Construct, establish, operate and maintain a veterans’ hospitai primarily for 
the veterans’ welfare;
b) Stimulate and/or undertake scientific researches on the veterans’ biological, 
demographic, social, economic, eugenic, physiological aspects of health


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disorders and abnormalities and their control; and gather, compile, present
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and publish the findings of such researches for public dissemination:
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c) Facilitate and encourage the dissemination and exchange of ideas and
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information on the prevention, treatment and control of diseases; to arouse,
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enhance and develop public interest and awareness on general health and
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physical fitness;
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d) Encourage and/or undertake the trainings of physicians, nurses, medical
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technologists, health officers and social workers on the practical and scientific
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conduct and implementation and delivery of health services, and related
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activities:
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e) Assist universities, hospitals and research institutions in their studies of health
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problems, to encourage advanced training on matters of, or affecting the
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physical and mental well-being of the people;
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f) Encourage the formation of other organizations on the national, provincial,
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city, municipal or barangay level and to coordinate their various efforts and
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activities for the purpose of achieving a more effective and pragmatic
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approach on the common problems relative to the objectives herein
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enumerated: and
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g) Extend medical outreach programs to the general public to help prevent,
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relieve or alleviate the innumerable afflictions and maladies of the people
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especially the poor and the less fortunate in life, without regard to race, creed,
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color or political belief.
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Sec. 5. Social Responsibility. - The VMMC is primarily committed to serve the
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Filipino veterans and their dependents as defined in Republic Act No. 6948, as
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amended by Republic Act No. 7696 and Republic Act No. 9396.
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Sec. 6. Definitions. - The following terms are used in this Act, as follows:
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a) Veterans -  any person who falls under any of the following categories:
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1. 
USAFFE veterans with wartime service;
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2. 
Recognized World War II guerillas in the Philippines whose names
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appear in the US approved reconstructed rooster of 1948;
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3. 
Deserving Guerilla;
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4. 
Philippine Expeditionary Forces to Korea (PEFTOK) members;
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5. 
Philippine Scouts who were in the service prior to October 6, 1945;
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New Philippine Scouts who were in the service prior to July 4, 1946 and
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other World War II veterans with approved claims at the Philippine
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Veterans Affairs Office;


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7. 
Hukvets carried in the HUKBALAHAP Rooster under PD 1207 and with
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approved claims at PVAO;
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Members of the Phiiippine Revolutionary Forces who took up arms
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against the Spaniards and the Americans during the Phiiippine
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Revoiution;
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Members of the Phiiippine Civic Action Group (PHILCAG) to Vietnam;
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Disabled veterans receiving disability compensation/pension under RA
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6948;
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Miiitary Retiree who joined the AFP before May 26, 2007; who was
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honorably discharges/separated with at ieast 6 years in miiitary service;
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12. Members of the Philippine Constabulary with at least 6 years cumulative
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active service; who was absorbed by the Phiiippine National Police in
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1991 (now under the DILG);
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13. Members of the Coast Guard Unit (PN) with at least 6 years cumulative
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active service; who later joined Philippine Coast Guard (now under
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DOTr) who was honorably separated from the service;
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14. Military Retiree with a minimum cumulative active service of 20 years;
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who have joined the AFP after May 26, 2007 provided that he was
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honorably discharged (RA 9396).
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b) 
Veteran Dependents - any person who fall under any of the following
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categories:
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1. Legitimate Spouse wife/husband or unremarried widow/er of the
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aforementioned veteran;
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2. Unmarried children below 18 years old of the aforementioned veteran; or
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unmarried children, regardless of age, who became physically/mentally
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incompetent/disabled before reaching the age of 18;
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3. Parents-natural/adoptive parents or those acting in loco parentis of the
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aforementioned veteran, regardiess of the veteran’s status.
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Sec. 7. Powers. - For the attainment of the above purposes and objectives, the
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VMMC, as a body corporate, acting through its Board of Trustees, shall have all powers
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pertaining to a juridical person, and is therefore authorized to:
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a) Acquire and hold in any manner property of whatever nature or description;
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b) Enter into contracts;
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c) Soiicit and receive donations, endowments and funds in the form of
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contributions, whether in cash or in kind, from both the public and private
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sectors;


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d) Open such accounts in banks and other financial institutions, and to disburse
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such funds or invest the same as the Board may direct to accomplish or
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advance the purpose or interest of the VMMC;
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e) Invite foreign specialist and other similar experts in the various medical fields
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to train the personnel or trainees or residents of the VMMC;
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f) Send the VMMC personnel to research institutes, medical institutes or
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universities for medical training or observation and to attend international and
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regional conventions, conferences, congresses and seminars, as the Board
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may deem necessary, to accomplish the purposes and objectives of the
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VMMC;
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g) Enter into such agreements and arrangements with other medical or other
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institutions, domestic or foreign, as may deemed desirable by the Board, for
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the purpose of promoting its purposes and objectives:
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h) Adopt a set of bylaws, rules and regulations not inconsistent with the law and
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the provision hereof to govern the administration and operation of the affairs
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of the VMMC;
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i) Establish branches of the VMMC in other provinces or cities of the Philippines
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as may be deemed necessary for greater service coverage to the veterans
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and their dependents that are living in almost all parts of the country; and
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j) Perform all such other acts and things as are or may be necessary or
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incidental for the accomplishment 
of the purposes and objectives of the
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VMMC.
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Sec 8. Board o f Trustees. - The VMMC shall be governed by a Board of
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Trustees, composed of the following:
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a) Secretary of National Defense as Chairperson:
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b) Medical Director of the VMMC as Vice Chairperson;
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c) Chairperson of the Senate Committee on Defense and Security:
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d) Chairperson of the House Committee on Veterans Affairs and Welfare;
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e) Secretary of Health;
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f) Administrator, Philippine Veterans Affairs Office;
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g) Chairman of the Philippine Veterans Bank;
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h) President of the Veterans Federation of the Philippines; and
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i) Three (3) appointive members who are veterans and who have distinguished
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themselves in their profession or areas of specialization particularly in the
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field of medicine, medical research, science and technology and have exerted
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conspicuous efforts towards the promotion of veterans’ welfare and well-
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being. They shall be appointed by the President of the Philippines and shall


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serve for a term of three (3) years. In case of vacancy, such vacancy shall be 
filled in the same manner as provided for the predecessor, and such 
appointee shall hold office for the unexpired term.
Sec. 9. Meeting and Quorum. - The Board of Trustees shail convene at least 
once a month. The Chairman of the Board may call a special meeting whenever 
necessary: Provided, that the members are notified in writing at least three (3) days 
prior to the said meeting. A majority of aii the members of the Board holding office at the 
time the meeting is called shall constitute a quorum for Board meetings. In no case shall 
any and all members of the Board appoint a representative to act on their behalf.
Sec. 10. Medical Director. - The Medical Director shaii be appointed by the 
President of the Philippines upon the recommendation of the Board and shaii serve for 
a term of six (6) years. The Medicai Director shall serve as the Chief Executive 
Officer of the VMMC and shall perform the following functions:
a) Organize the VMMC into a streamiined medicai institution with admirable 
facilities and competent staff to ensure quaiity service;
b) Appoint members of the professional and administrative staff and other 
employees and personnel of the VMMC through a screening process based 
strictly on academic qualifications, experiences and other selection standards; 
determine the terms and conditions of their employment, and remove them for 
cause in accordance with law and due process;
c) Determine a position qualifications and compensation plan and adjust salaries 
and benefits for all personnel of the VMMC, subject to the Compensation and 
Position 
Classification 
System 
of the 
Governance 
Commission 
for 
Government-Owned and -Controlled Corporations (GOCCs); and
d) Carry out necessary managerial and administrative functions that may be 
deemed necessary or as directed by the Board of Trustees in furtherance of 
the objectives of the VMMC set in this Act.
Sec. 11. Secretary. - There shall be a Secretary of the VMMC as appointed of 
the Board of Trustees, who shall be the Secretary of the Board and who shall keep such 
records of the hospitals as may be designated by the Board.
Sec. 12. Hospital Executive Committee. - There shall be an Executive 
Committee consisting of the Medical Director as the presiding officer and the Heads of 
the Administrative, Medical, Surgical, Rehabilitative, Dental, Psychiatric, Diagnostic and 
other critical medical departments.


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The Committee shall exercise the following functions:
a) Fix the requirement for admission to the hospital;
b) Prescribe the rules and regulations as to the discharge of patients;
c) Adopt internal rules of procedures consistent with the provision of the Charter 
in order to promote administrative efficiency in the treatment, rehabilitation 
and discharge of patients of the hospital; and
d) Carry out administrative and managerial task to assist the Medical Director in 
the efficient operations and management of the hospital.
Sec. 13. P e rso ^el and Medical Staff. — The VMCC shall have the autonomy to 
employ such employees and medical personnel, or otherwise enter such arrangements 
with medical specialist and other consultants as its Board of Trustees shall determine. 
The personnel and medical staff of the present VMMC shall automatically be transferred 
to and absorbed by the VMMC as herein created. The incumbent Medical Director shall 
continue to serve as such for a period of three (3) years or until his successor shall have 
been appointed by the President of the Philippines.
Sec. 14. Assistance from Government Offices. - The VMMC may call upon 
any department, bureau, office, agency or instrumentality of the government, including 
the GOCCs, for such assistance as it may need in the pursuit of its purposes and 
objectives.
All individuals, entities and institutions are hereby enjoined to render full 
assistance and cooperation to VMMC in the accomplishment of its objectives and 
activities.
Sec. 15. Property of the Medical Center. -  All existing assets of the VMMC 
including, but not limited to, the parcel of land belonging to the private domain of the 
government situated in the District, Quezon City and more particularly described in the 
Bureau of Lands as Lot R.P.-3-B-4-A, BSD-10352, all its buildings and other properties 
shall remain with the VMMC as a corporate entity, including those that may hereafter be 
given, donated, acquired, transferred or conveyed to the Medical Center or its branches 
and instrumentalities by any foreign government, as well as those given by trust, 
foundations, corporations or persons (alien or citizen). The absolute ownership of the 
Medical Center over these landholdings including those covered by original and transfer 
certificates of title in the name of the VMMC is hereby confirmed. Where the issuance of 
proper certificates of title is still pending for these landholdings the proper government 
office shall expedite issuance thereof within six (6) months from the date of effectivity of


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this Act: Provided, that all registration requirements necessary for the issuance of the 
said titles have been submitted and complied with.
Sec. 16. Land Grants and Other Real Properties. - The use of properties and 
proceeds of such properties shall be governed by the following:
a) The State shall support the VMMC in the sum or lump sum amount, through 
general appropriations and other financial benefits, and in kind, through land 
grants and donations and use of other real properties shall be used to further 
the ends of the hospital, as may be decided by the Board of Trustees in 
furtherance of the declared hospital objectives under this Act;
b) Such parcels of land ceded by law, decree or presidential issuance to the 
hospital are hereby declared to be reserved for the purposes intended;
c) The Board of Trustees shall plan, design and approve and/or cause the 
implementation of contracts, mechanisms and financial instruments, such as 
joint ventures, long-term leases, fully-owned subsidiaries and securitization to 
give the hospital the flexibility to generate revenues and other resources from 
land grafts and other properties: Provided, that such mechanism and 
arrangement shall sustain and protect the environment In accordance with 
law, and be exclusive of the medical core zone of the hospital: Provided, 
finally, that such mechanism and arrangements shall not conflict with the 
medical or health services and academic mission of the hospital; and
d) Any plan to generate revenues and other sources from land grafts and other 
real properties entrusted to the hospital shall be consistent with the hospital 
mission and orientation as a vehicle to extend health services to veterans 
and their dependents.
Sec. 17. Safeguards on Asset Disposition. - The preservation of the value of
the assets of the hospital shall be of primordial consideration. The exclusive core 
zone of the VMMC as defined in Section 14 shall not be sold, transferred, ceded, 
conveyed, assigned, and encumbered.
Sec. 18. Annual Report. - The VMMC shall render to the President of the 
Philippines an annual report of its activities and recommendations.
Sec. 19. Effect of the Dissolution. - If, for any reason, the VMMC is dissolved, 
its property remaining at the time of such dissolution shall revert to the Republic for 
disposition in accordance with law.


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Sec. 20. Implementing Rules. - The implementing rules and regulations shall be 
formulated within one hundred twenty (120) days from the approval of this Act.
Sec. 21. Separability Clause. - If any provision of this Act is declared 
unconstitutional, all the other provisions not affected shall remain in force and effect.
Sec. 22. Repealing Clause. - All laws, decrees, executive orders, rules and 
regulations or other issuances or parts thereof contrary to or inconsistent with the 
provisions of this Act are hereby repealed, amended or modified accordingly.
Sec. 23. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation.
Approved,