Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
AUTHORIZING THE DEPARTMENT OF HEALTH TO SET AND APPROVE 
THE BED CAPACITY OF ITS RETAINED HOSPITALS 
EXPLANATORY NOTE 
The Department of Health currently supervises and controls 89 
retained hospitals nationwide. These institutions include a diverse mix of 
levels and specialties, supported by four Government-Owned and Controlled 
Corporation (GOCC) specialty hospitals – namely the Lung Center of the 
Philippines, National Kidney Transplant Institute, Philippine Heart Center, 
and Philippine Children’s Medical Center.  
In 2019, DOH hospitals recorded an average of 30,309 daily inpatients, 
while roughly discharging only one-tenth of them. This patient load pushes 
the four-hospital system to an average bed occupancy rate of 131%, meaning 
that approximately three out of four hospitals operate beyond their licensed 
bed capacity.  This rate significantly exceeds the World Health Organization-
recommended range of 80-85%, raising concerns about potential compromise 
of service quality and patient care.  
Under the current regulations, expanding bed capacity or upgrading 
service capabilities for government-owned hospitals- including those under 
the DOH- requires new legislation. This process is time-consuming, often 
taking eight months to three years, which delays necessary enhancements to 
meet growing healthcare demand. 
Such a mismatch between capacity and actual demand threatens the 
State’s commitment to Universal Health Care by limiting hospitals’ ability to 
accommodate increasing patient volumes and compromising timely delivery 
of services, staffing, infrastructure, and other resources. 
To address these challenges, this bill proposes to grant the Department 
August 18, 2025
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of Health the administrative authority to determine and approve changes in 
bed capacity and corresponding service capabilities of its retained hospitals. 
This would enable prompt, evidence-based adjustments responsive to real-
time healthcare demands, improving efficiency and access. 
In view of the foregoing, the approval of this bill is urgently sought. 
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT  
AUTHORIZING THE DEPARTMENT OF HEALTH TO SET AND APPROVE 
THE BED CAPACITY OF ITS RETAINED HOSPITALS 
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 “DOH Hospital Bed 
Capacity Rationalization Act.” 
SECTION 2. Purpose, Scope, and Coverage. – This Act shall streamline the 
process for approving changes in the authorized bed capacity of all 
Department of Health (DOH) retained hospitals. 
SECTION 3. Authority to Approve. – Authority is hereby granted to the DOH 
to adjust and approve the authorized bed capacity of its retained hospitals. 
Thereafter, the DOH shall, by administrative or department order, increase, 
decrease, or maintain the bed capacity of its retained hospitals, subject to 
specific guidelines that it shall issue and promulgate, within six months, after 
the enactment of this law. 
SECTION 4. Appropriations. – Amounts necessary to implement and carry 
out the provisions of this Act shall be included in the annual budget of the 
Department of Health. 
SECTION 5. Annual Report to Congress – The Department of Health shall 
provide Congress, through the House and Senate Committees on Health, an 
annual report on hospitals with approved bed capacity changes, along with 
the necessary funding requirements. 
SECTION 6. Implementing Rules and Regulations. – The Secretary of 
Health shall come up with the IRR, within three (3) months after the law’s 
effectivity. 
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SECTION 7. Repealing Clause. -  All laws, decrees, executive orders, rules 
and regulations, or parts thereof which are inconsistent with this Act are 
hereby repealed, amended or modified accordingly. 
 
SECTION 8. 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,