THIRTEENTH CONGRESS OF THE REPUBLIC) 
E3 
llCT I 1 nl I /.+’ 
THIRD REGULAR SESSION 
1 
I I 2  3 
1 ,.l 
OF THE PHILIPPINES 
1 
/ 
S E N A T E  
S. No. 2486 
Introduced by Senator Juan Flavier, h p  
EXPLANATORY NOTE 
Health research is vital in the improvement of the blueprint and strategies for 
health interventions, policies and service delivery. It encompasses all different 
types of research including basic, fundamenfal, laboratory, biomedical, clinical, 
applied, epidemiology. psychosocial, population health, health promotion, policy 
development, health economics, health systems and health delivery systems. 
Many of the components of a successful research environment include among 
others, the need for training, skilled researchers, protection of time. a supportive 
environment, peer review, dissemination and implementation of research results, 
effective alliances and partnerships, and, of course, the financial resources to 
support the acfivity. 
The health research landscape is composed mainly of national agencies such as 
the Department of Health (DOH) and Department of Science and Technology 
(DOST), the academe, people’s organizations, medical societies and policy- 
makers. The implementation of researches is accomplished through a health 
research network composed of public and privafe research institutions working in 
unison or independently to respond to the national health needs. 
in Republic Act No. 8503, also known as the “Health Research and Development 
Act of 1998” the National Institutes of Health was established as a center for 
excellence for healfh research and development, mandated to 11) promote 
science and technology research and development in the field of health; (2) 
promote the development of study groups and research programs: (3)establish 
mechanisms for the dissemination and utilization of research outputs; and (4) 
ensure that the results of health research and development activities are utilized to 
improve the health of the people. 
Executive Order No. 102 mandates the Department of Health to provide 
assistance to local government units, peoptes’ organizations, and other members 
of the civic society in effectively implementing programs, projects and services 
that will promote the health and weltbeing of every Filipino, prevent and control 
diseases among populations at risk, protect individuals, families and communities 
exposed to hazards and risks that coutd affect their health. and treat, manage 
and rehabilitate individuals affected by disease and disability. 
By virtue of Executive Order No. 128, the Department of Science and Technology, 
is mandated to ( 1  ) provide central direction, leadership and coordination of 
scientific and technological efforts: 12) formulate and implement policies, plans, 
programs and projects for the development of scientific and technological 
activities in the public and private sectors; and (3) ensure that the results of 
scientific and technological activities are properly applied and utilized to 
accelerate economic and social development. 
In the 1999 Center for Economic Policy Research study on the flow of funds for 
health research and development. it was reported that the government’s 
budget in 1996 allocated less than 1 % for research and development resources, 


only 17% of which was allotted for health research. Respondents to the survey 
claimed that a large chunk of health R & D funds came from the private sector 
(45%) led by private hospitals. However, despite increasing support from the 
private sector, the total health R & D expenditures are still far below the World 
Health Organization-recommended level of 5% of total health expenditures. 
Our country's ability to ensure optimum health for every Filipino hinges on the 
degree of prion'ty we grant to health research and development (R & D) 
activities. This bill, therefore, seeks to oblige a number of government instifutions 
to allocate a particular portion of their gross annual revenue or charge 
additional fees for health research and development activities. 
Senat 


THIRTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
1 
6 @err 1 I nii :,:6 
THIRD REGULAR SESSION 
1 
f 
~~~1~~~ 
By:. 
S E N A T E  
S. No. 2486 
Introduced by Senator Juan Flavier, MD 
_.,. 
‘w&w&?2.~d$v:, 
i 
-. b”*,. 
AN ACT 
ESTABLISHING A PHILIPPINE NATIONAL HEALTH RESEARCH SYSTEM 
MANDATING SELECTED GOVERNMENT AGENCIES TO ALLOCATE PERCENTAGES 
OF THEIR GROSS ANNUAL INCOME OR CHARGE ADDITIONAL FEES 
FOR HEALTH RESEARCH AND DEVELOPMENT (R & D) ACTIVITIES 
Be if enacted by the Senate and the House of Representatives of the Philippines 
In Congress assembled: 
SECTION 1. 
Research System Act of 2006.” 
Short Title. This Act shall be known as the “Philippine National Health 
SECTION 2. 
Declaration of Policy. It is hereby declared the policy of the State to: 
[A) protect and promote the right of health of the people and instill health 
consciousness among them; and 
(B) improve the quality of life of every Filipino through health research and 
development initiatives. 
SECTION 3. 
Definitions. For purposes of this Act. the term: 
(A) “Health” is defined as a state of optimal physical, mental and social 
well-being and ability to function at the individual level, and not merely 
the absence of disease or infirmity. 
(B) “Research and development (R & D) for health” is a global term to 
describe research and development activities undertaken to idenfify. 
resolve and prevent health problems and improve well-being. This 
encompasses all different types of research including basic, 
fundamental, laboratory, biomedical. clinical, applied, epidemiology, 
psychosocial, 
population 
health, 
health 
promotion, 
policy 


development, health economics, health systems and health delivery 
systems. 
(C) “Philippine National Health Research System (PNHRS)” is a framework 
anchored on the principles of Essential National Health Research on 
inclusiveness, participation, quality, equity, efficiency and effectiveness, 
for the development of a coherent research agenda which connect 
to, and converge with, the wider health, economic, political, 
educational and science and fechnology (S & T) systems of the 
country. 
(D) “Health research agenda” describes the overall directions and the 
important general phdples, issues and priorities which should be 
addressed in the national plan for health R and D under the National 
Health Research System. The research will be based on a unified 
national health research agenda for the local and national levels. 
(E) “Core agencies” refer to the main national health and health related 
agencies namely: the Department of Health (DOH), the Departmenf of 
Science and Technology-Philippine Council for Health Research and 
Development (DOST-PCHRDJ, the National institutes of Health (NtH). and 
the Commission on Higher Education (CHED). 
(F) “Coordinating Agencies” refer to PCHRD-DOST and DOH with PCHRD as 
lead coordinator and DOH as co-coordinator. 
(G) “Philippine National Health Research Fund (PNHRF)” means any funds 
made available by appropriations to the partner institutions for 
attainment of the purposes of the PNHRS. 
(H) “Health research stakeholders” include the national and the local 
private and public health agencies, policy makers, the academe, 
medical societies, people‘s organizations, and others which may have 
the roles of 
health researchers, program administrators and 
beneficiaries. 


(I) 
"Management of Fund" - involves the generation, allocation and 
utilization, of the Philippine National Health Research Fund, including 
government and nongovernment sources both domestic and 
international sources. 
Title I 
Philippine National Health Research System 
SECTION 4. 
Creation of the Philippine National Health Research System. The 
Philippine National Health Research System (PNHRS) is hereby constituted. It shall 
be made up of all research stakeholders as defined under section 3(H). 
SECTION 5. Purposes of the PNHRS. The PNHRS aims to improve the health status, 
productivity, and the quality of life of Filipinos by: 
[ 1 )  producing new knowledge through research; 
[2) developing a national and global network of researchers, 
research organizations, and other members of the health 
research community; 
(3) deepening the involvement of stakeholders: 
(4) securing sustainable financing for health research and 
development: 
(5) building capacities for health research and development 
activities; 
(6) encouraging individuals to pursue research as a career: 
(7) inculcating internationally and culturally accepted ethical 
standards and principles especially in researches involving 
human subjects and participants; 
(8) ensuring public access to the information and other outputs 
generated by the health research systems; and 


(9) encouraging the utilization of research results in the form of 
products, technologies, programs and services. 
SECTION 6. Structure and Organizafion of fhe PNHRS. The Philippine National Health 
Research System shall have a Governing Council made up of the following: 
(1) The Secretary of the Department of Science and Technology: 
(2) The Secretary of fhe Oeparfmenf of Health; 
(3) The Chair of the Commission on Higher Education; 
(4) The Executive Director of the Philippine Council for Health 
Research and Development; 
(5) The Director of the Health Policy Division and Planning Bureau; 
[S) The Chancellor, UP Manila 
(7) The Executive Director, national Nutrition Council 
(8) The Director, National Institutes of Health 
(9) The Director, Social Services Director - NEDA 
(1 0) 
Industry Representative 
(1 1 ) 
NGO Representative 
(1 2) 
Representative from Academe 
(1 3) 
LGU representative 
(1 4) 
(1 5) 
The Visayas regional health research system representative; 
The Mindanao regional health research system representative; 
each of whom shall serve for a ferm of Go years. 
SECTION7. Functions of the Governing Council. 
The Governing Council shall: 
(1) set policies and directions for the Philippine National Health 
Research System. 
(2) periodically review and approve the long-term plans and 
programs of the Philippine National Health Research System. 


(3) evaluate and approve the National Health Research Agenda 
that shall be developed and drafted by the Core Agencies. 
(4) identify areas that will serve as the foci of the National Health 
Research Agenda. 
(5) review grants and/or donations from domestic and international 
funding agencies. 
It shall consider the terms of 
the 
granfs/donations; assess the benefits from the grants/donations: 
and evaluate the relevance of the grants' terms on over-all 
health research plans and objectives. 
(6) review and approve research projects or programs that have an 
estimated cost of equal to or more than one ( 1 )  million pesos. 
(7) approve investments to be made from the Philippine National 
Health Research Fund created under Section 9 of this Act, after 
studying recommendations made by the Investment Advisory 
Group, established under Section 15. 
SECTION 8. Functions of the Advisory Board. A nine member Advisory Board shall 
provide advice to the PNHRS Governing Council. The Advisory Board composed 
of individuals with broad knowledge and experience in areas affecting health and 
health research. 
SECTION 9. Functions of the Philippine National Healfb Research Commiffees. The 
PNHRS shall be composed of six (6) committees namely the Committees on 
Research Management, Capacity Building, Ethics, Structure/Organization, 
Monitoring and Evaluation, Research Utilization, and Resource Mobilization. The 
Committees shall: 
( 1 )  
provide technical and policy advice in setting health research 
agenda, formulating policies and addressing matters relafed fo 


priority 
setting, 
proposal 
review 
and 
funding/fund 
management, and project monitoring and evaluation; 
ensure adherence to universal ethical principles and values on 
the dignity of health research participants; 
provide technical and policy advice in the development and 
continuous supply of quality human and institutional resources 
for health research; 
provide technical and policy advice to ensure the stewardship 
and leadership of the PNHRS espoused health research that 
connects to health needs and outcomes. policy and action; 
provide technical and policy advice to develop and sustain 
knowledge management systems, 
communication and 
advocacy strategies to connect research to health needs and 
outcomes, policy and action; 
(2) 
(3) 
(4) 
(5) 
(6) 
provide technical and policy advice/support to secure 
sustainable financing, and ensure equity, effective and efficient 
use of resources for health research and development. 
SECTION 10. Roles of the Core Agencies. 
The Philippine Council on Health 
Research and Development, the National Institutes of Health, the Department of 
Health, and CHED shall serve as the core agencies in the implementation of the 
purposes of this Act: 
(1) The DOST-PCHRD, DOH, NIH, and CHED, in accordance with the 
purposes set in Section 4, shall develop through consultation with 
stakeholders the research agenda for the Philippine National 
Health Research System, subject to the Governing Council's 
approval. 
(2) The DOST-PCHRD shall approve and if necessary partake in 
specific projects and programs proposed by health research 


stakeholders defined in Sec. 3(G), provided the cost of each 
project or program is estimated below one (1)-million pesos and 
that they are in accordance with the PNHRS research agenda. 
(3) The NIH, CHED and the DOH shall also approve research projects 
and programs proposed by their internal organizations, provided 
that the projects/programs are in accordance with the PNHRS 
research agenda. 
(4) DOST-PCHRD, DOH, NIH, and CHED can utilize the sum allotted for 
research projects and programs from the Philippine National 
Health Research Fund stipulated in Titie If. 
(5) The four agencies, collectively, shall establish the criteria for 
stakeholders that can apply for the grants. They shall collectively 
establish the criteria for the approval of projects and programs. 
These criteria shall be reflected in the implementing rules and 
regulation of this Act. 
Title II 
Philippine Health Research Fund 
SECTION 1 1. Creation of the Philippine National Health Research Fund. To pursue 
the objectives of the PNHRS, a Phitippine National Health Research Fund is hereby 
created. 
SECTION 12. Fund Uses. The main objective of this fund is to provide sustained 
financial support for knowledge management and its translation into efficient and 
effective health polices and service delivery; a strengthened health care system: 
and improved health for all Filipinos. It shall ensure that the Government invests in 
health research as part of its commitment to secure the well-being of its citizens. 
Specifically, it shall: 


( I )  support quality ethical research and the application of ethical 
principles to health research and development activities: 
(2) create a robust health research environment in the Philippines 
that will attract, develop and keep excellent researchers and 
provide them with the opportunity to contribute to the 
improvement of people's health in the country and the world; 
(3) fulfill an integrated health research agenda across disciplines, 
sectors and regions that reflects the emerging health needs of 
Filipinos and the evolution of the health system, and supports 
health policy decision-making: 
[4J ensure the promotion research undertakings that meet the 
highest international scientific standards of excellence and ethics 
and that pertains to aM aspects of health, including bio-medical 
research, clinical research and research on health systems, health 
selyices. the health of populations, societal and cultural 
dimensions of health and environmental influences on health; 
(5) address emerging health opportunities, threats and challenges 
(e.g. avian flu, SARS) and accelerate the discovery of cures and 
treatments and improvements to health care, prevention and 
wellness strategies; 
(6) promote the dissemination of research-based knowledge, 
technologies, and innovations and the application of health 
research to improve the health of Filipinos and, provide support 
for the participation of Filipino health scientists in international 
collaboration and partnerships in health research 
SECTION 13. Sources of Fund and Method of Collection. 
(1) The Philippine National Health Research Fund will be sourced out 
from the following: 


a. One percent (1 %j of the Philippine Health lnsurance 
Corporation gross annual revenue until the PNHRF reaches the 
sum of 10 billion pesos: 
b. Five percent (5%) of the National Statistics Office's annual 
revenue from birth certificate issuances; 
c. Additional Php.50 for driver's license issuance and renewal fees 
charged by the Land Transportation Office; 
d. Additional PhplOO health research fee charged for license 
application and renewal of all health professional (i.e. 
physicians, 
nurses, 
dentists, 
pharmacists, 
medical 
technologists, midwives, dieticians, veterinarians, etc.); 
e. One percent 
(1%) 
total revenues generated by the 
Department of Environment and Natural Resources from the 
motor vehicle user's charge, and fines and penalties collected 
under the Clean Air Act and the Clear Water Act; 
f. 
Any other appropriations from government when reflected in 
the General Appropriations Act: and 
g .  Donations and grants from domesfic and international sources 
provided that the receipt thereof does not constitute a 
breech of Philippine law and recognized international treaties. 
Provided further, that the Governing Council approve the 
receipt of such grants and/or donations. 
(2) All agencies covered under Section 13 Paragraph 1 are hereby 
directed to automatically transfer the amount prescribed by this 
act to the specified account established by PCHRD as the fund 
manager. Except in cases of force majeure and similar 
circumstances, the transfer must take place during the first 
quarter of the current fiscal year with the previous fiscal year as 


common stocks of a newly organized corporation about to 
be listed in the Philippine stock exchange. Provided, finally, 
that such duly organized corporation shall have been rated 
“A”, double “A’s” or triple “A’s” by authorized accredited 
domestic rating agencies or in mutual funds including allied 
investments. 
All investments made with the use of the PNHRF shall be fully 
(6) 
disclosed to the public. 
SECTION 15. Creation of fbe lflvesfmenf Advisory Group. 
(1 J An Investment Advisory Group is hereby established to make 
recommendations on matters of investments from the PNHRF. The 
group shall recommend the method of investment that will yield 
the highest return for the PNHRF. 
(2) The advisory group shall compose of : 
a. A DOH representative to be appointed by the Health 
Secretary; 
b. A DOST-PCHRD representative to be appointed by the DOST 
Secretary; 
c. A representative from the NIH to be appointed by the NIH 
Director. 
d. Two reputable economists or market analysts with extensive 
knowledge of the financial and stock markefs; 
e. A representative from the Bangko Sentral ng Pilipinas. 
f. Two reputable members of the bar; 
g. A representative from the research community. 
Title 111 
Transitory Provisions 


SECTION 16. Jmplemenfing Rules and Regulation. The Coordinating Agencies shall 
draw up the implementing rules and regulations for this Act within a year after the 
effectivity of this Act. 
SECTION 17. Separability Clause. If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected 
shall remain valid and subsisting. 
SECTION 18. Repealing Clause. 
Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to or inconsistent with, the provisions of this Act is hereby repealed, 
modified or amended accordingly. 
SECTION 19. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved.