Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 7326

Introduced by
REPRESENTATIVE JOEL MAYO Z. ALMARIO

AN ACT
REVERTING TO THE NATIONAL GOVERNMENT THE
DISCHARGE OF BASIC HEALTH SERVICES DEVOLVED TO
MUNICIPAL AND PROVINCIAL LEVELS AND AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN
AS THE LOCAL GOVERNMENT CODE OF 1991

EXPLANATORY NOTE

As it is part of the mandate of the Constitution that the State shall
protect and promote the right to health of the people, the Local
Government Code of 1991 provides for the devolution of the support
and supervision of local public hospitals and health centers from the
Department of Health (DOH) to the local government units (LGUs). To
provide more elbow room for local government units to manage their
own areas, they were granted wider autonomy in supervising medical
facilities and providing health services to their people, based on the
premise that LGU executives have better knowledge of what their
citizens need and would know how to provide the required health
services firsthand.

Unfortunately, due to failure to effectively decentralize and
devolve powers to the LGUs that would allow them to raise sufficient

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revenue for the construction, operation, maintenance, and repairs of the
hospitals, the quality of health care deteriorated.

Given these conditions, and pending the shift to a federal form of
government, this measure seeks to amend certain sections of the Local
Government Code of 1991 and revert to the national government the
control and supervision of the health system for municipal and
provincial hospitals to ensure that the public will receive the kind of
health services they deserve. The powers devolved to chartered cities in
operating and managing hospitals will still be retained given that they
are more fiscally capable to manage the construction, operation,
maintenance, and repairs of hospitals.

In view of the foregoing, approval of this measure is earnestly
sought.

JOEL Z. ALMARIO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

7326

HOUSE BILL NO.

Introduced by
REPRESENTATIVE JOEL MAYO Z. ALMARIO.

AN ACT
REVERTING TO THE NATIONAL GOVERNMENT THE
DISCHARGE OF BASIC HEALTH SERVICES DEVOLVED TO
MUNICIPAL AND PROVINCIAL LEVELS AND AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS
THE LOCAL GOVERNMENT CODE OF 1991

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

SECTION 1. Title. - This Act shall be known as the “Re-nationalization of
Devolved Health Services and Facilities Act.”

SECTION 2. Declaration of Policy. - It is the declared policy of the State
that it shall protect and promote the right of health of the people and
instill health consciousness among them. Further, the State shall endeavor
to make essential goods, health and other services available at affordable
cost.

SECTION 3. Objectives. - The Objectives of this Act are:
(a) To prevent the further deterioration of government health
services and facilities brought about by devolution;
(b) To provide essential health services to the people especially the
sick, the poor and marginalized sector of the society;

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(©) To improve and uplift the morale, social and economic well-
being of devolved health workers; and

(d) To develop a professional health manpower that is responsive
to the people’s health needs and problems.

SECTION 4. Re-nationalization. - All health services and facilities
devolved to the municipal and provincial levels are hereby re-
nationalized or returned to the national government. For this purpose, the
following provision of the Local Government Code or RA 7160 are hereby
deleted and declared no longer enforceable and effective:

(a) Section 17 (b) paragraph (1) (ii), paragraphs (2) (iii) and (3) (iv);

(b) Section 102 (a) (1) and (3); and

(c) Other related provisions of the Local Government Code that
pertain to devolved health services and facilities to
municipalities and provinces.

SECTION 5. Authority to Use Income. - Re-nationalized hospitals and
Rural Health Units/Centers are hereby authorized to use their income
derived from their operations to improve and upgrade their services:
Provided, that the supporting financial and work plans are first approved
by the Secretary of Health.

SECTION 6. Appropriations. - In the year following the enactment of this
Act into law, the cost of the devolved health services and facilities shall
be deducted by the Department of Budget and Management from the
Internal Revenue Allotment of the Local Government Units and shall be
used as funding source to implement the provision of this Act. Any
deficiency shall be charged against the Organizational Adjustment fund
and appropriations saving/reserves. Thereafter, such sums as may be
needed for its continued implementation shall be included in the Annual
General Appropriations Act.

The Internal Revenue Allotment of Local Government Units in the
succeeding years shall be the net of the cost of devolved health services
and facilities.

SECTION 7. Implementing Rules and Regulations. - The Department of
Health, in consultation with the Department of Interior and Local

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Government, shall formulate the Implementing Rules and Regulations
within three (3) months after the enactment of this law.

SECTION 8. Repealing Clause. All laws, presidential decrees, executive
orders, and rules and regulations, or parts thereof, inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SECTION 9. Separability Clause. - If, for any reason, any section or
provision of this Act is held unconstitutional or invalid, the other sections
or provisions thereof shall not be affected thereby.

SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in any two (2)
newspapers of national circulation.

Approved,

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