· 
FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
, 
S. No. 994 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
10 
cJUL-8 Pl:jl 
Seventy percent (70%) of the country's hospitals are privately owned. 
Distributed to the different areas of the country, these institutions provide the much 
needed medical services and facilities that government hospitals cannot alone provide 
thereby filling a void in the people's health needs. 
As a partner in promoting people's health, the government must provide 
assistance to private hospitals to ensure their viability and high quality service. 
This legislation proposes a Private Hospital Development Plan, which will be 
drawn in coordination with the Secretary of Health, appropriate government agencies 
and non-government organizations,. 
This plan shall monitor the needs of private 
hospitals in terms of its facilities, equipment and human resources. It shall also grant 
tax incentives to accredited private hospitals. 
This bill likewise proposes the creation of a Special Private Hospital Fund that 
will be sourced from real property taxes paid by private hospitals. The money collected 
shall be used to finance the improvement of private hospital facilities and to assist 
community-based projects in various localities. 
This fund shall be managed and 
disbursed by the local health board in each municipality or chartered city with private 
hospitals. 
Through this bill, we hope to build a bridge of cooperation between the 
government and private hospitals. It shall provide the needed link between the public's 
ever growing health care needs and the advanced medical services afforded by private 
hospitals to help build a healthy nation 
The immediate passage of this bill is therefore requested. 
MA~SO"M. 
Senator 


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FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
10 
JUL -8 Pl:31 
SENATE 
S. No. 994 
Introduced by Senator Manuel "lito" M. Lapid 
AN ACT 
PROVIDING ASSISTANCE TO PRIVATE HOSPITALS 
INCENTIVES 
AND 
ESTABLISHING 
A 
PRIVATE 
DEVELOPMENT PLAN AND FOR OTHER PURPOSES 
BY GRANTING 
HOSPITAL 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Short Title. -
This Act shall be known as the "Private 
Hospital Assistance Act of 2010." 
SEC. 2. 
Declaration of Policy. - It is the policy of the State to provide 
assistance to private hospitals to ensure their viability and enable them to continue 
giving quality service to the people. 
I. PRIVATE HOSPITAL DEVELOPMENT PLAN 
SEC. 3. 
The Private Hospital Development Plan. - The Secretary of 
Health, in consultation with the appropriate government agencies, the Philippine 
Hospital Association and other non-government organizations, 'shall draw up a Private 
Hospital Development Plan that shall: 
1. 
Assess the prevailing situation in a certain locality and identify needs in 
terms of facilities, equipment and human resources, provide incentives for, and 


establish agreements and linkages with private hospitals and clinics to answer these 
needs; 
2. 
Identify undeserved or unserved areas in terms of secondary and tertiary 
care where private hospitals can be established and, in collaboration with other 
government agencies, provide proper incentives for the same; 
3. 
Promulgate rules and regulations regarding the number, composition and 
other matters relating to the creation of the Private Hospital Board as provided for in 
Section 5 of this Act; 
4. 
Establishing guidelines for better coordination and cooperation between 
government and private hospitals system in the country so as to provide better quality 
medical services to more people needing medical attention. 
II. CREATION OF THE PRIVATE HOSPITAL FUND AND BOARD 
SEC. 4. 
Private Hospital Fund. - All proceeds from the payment of real 
property taxes of private hospitals shall accrue to a Special Private Hospital Fund 
which shall be used for the following purposes: 
a) 
Improvement of hospital facilities to accommodate more service ward 
patients; and 
b) 
Financial assistance to community-based health projects in the locality. 
SEC. 5. 
The Private Hospital Fund Board. - The private hospital fund 
shall be managed and disbursed by a local Board which shall be constituted in each 
municipality or chartered city with private hospitals, and shall be composed of: 
a) 
The Mayor of municipality/chartered city as Chairperson; 
b) 
A director from every private hospital in the municipality or city; 
c) 
The municipality health officer; 
d) 
Two (2) representatives of the private sector or non-governmental 


.' 
organizations. 
The members of this Board shall be chosen in accordance with implementing 
rules and regulations to be issued by the Secretary of Health. The Private Hospital 
Board shall adopt its own rules and regulations, which shall enable it to finance the 
activities, provided for in Section 4 of this Act. 
SEC. 6. 
Audit of the Private Hospital Fund. - The disbursement of the 
Private Hospital Fund shall be subject to audit by the Commission on Audit. 
SEC. 7. 
Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not affected by such declaration, shall 
remain in full force and effect. 
SEC. 8. 
Repealing Clause. - Any provision of law, rules and regulations 
inconsistent with this Act is hereby repealed or modified accordingly. 
SEC. 9. 
Effectivity. - This Act shall take effect fifteen (15) days upon its 
publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved,