Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8688
HB. No.

Introduced by: HON. LORD ALLAN JAY Q. VELASCO

EXPLANATORY NOTE

Article I, Section 15 of the 1987 Philippine Constitution lays down the important policy
that “[t]he State shall protect and promote the right to health of the people and instill health
consciousness among them.” In its social justice provisions, the Constitution also instructs the
State to “adopt an integrated and comprehensive approach to health development which shall
endeavor to make essential goods, health and other social services available to all the people at
affordable cost.”!

These provisions mandate that every Filipino has the basic right to health products and
services and the right to receive them at affordable costs. But in this country where the minimal
fluctuation of oil prices in the global market can result in the surge of inflation rate, it behooves
the government to intervene from time-to-time and ensure that the price of health services remain
affordable and convenient for Filipinos, especially the poor.

Hence, this measure has been filed to ascertain that, whenever it becomes necessary, the
price of medical services in health facilities and other related facilities will remain stable and
affordable, Not only will it help mitigate the effects of inflation, but it will also supplement the
goal of the country towards economic development. National progress and development, after
all, can only be achieved through a healthy and able-bodied citizenry and workforce. With this
bill, a price freeze on medical services can be ordered by the President, through the appropriate
recommendation of the Secretary of the Department of Health, should the need arise. As a pro-
poor measure, its purpose is to help uplift the lives of the thousands and millions of Filipinos
who can barely afford the basic services, such as blood testing, provided by health practitioners
in private hospitals across the country.

In view thereof, the approval of this bill is earnestly sought.

LORD ALLAQ JAY Q. VELASCO.

1 1987 Philippine Constitution, Article XIII, Section 11.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

H.B.No. 8688

Introduced by: HON. LORD ALLAN JAY Q. VELASCO

“AN ACT STRENGTHENING THE REGULATION OF HEALTH FACILITIES AND
SERVICES IN THE PHILIPPINES, REPEALING FOR THE PURPOSE REPUBLIC
ACT NO. 4226, OTHERWISE KNOWN AS THE HOSPITAL LICENSURE ACT, AND
FOR OTHER PURPOSES”

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 “Health Facilities
Regulation Act.”

SECTION 2. Definitions. - As used in this Act:

(a) Bureau shall refer to the Bureau of Health Facilities and Services (BHFS) under
the Department of Health (DOH);

(b) Health Facilities shall . refer to institutions and other health-related
establishments which provide diagnostic, therapeutic, rehabilitative, and/or
other health care services except medical radiation facilities and hospital
pharmacies;

(©) License shall refer to a formal authorization issued by the DOH to an individual,
partnership, corporation or association to operate a hospital and other health
facilities. It is a prerequisite for accreditation of a hospital and other health
facilities by any accrediting body that is recognized by the DOH; and

‘d) Licensee shall refer to the person, partnership, corporation or association
P Pi iP, Corpor:
granted a license to operate and maintain a health facility according to an
approved standard set by the Bureau.

SECTION 3. Regulating Agency. - The Bureau shall act as the regulatory agency
pertaining to the licensing and operation of health facilities and services in the country.



Cerud asHVEYne

SECTION 4. Powers and Functions. - The Bureau shall have the following powers
and functions:

(a) To establish and prescribe rules, regulations, standards and specifications in all
cases related to the issued certificate of license of health facilities and other
related facilities and administer and enforce the same;

(b) To regularly inspect and monitor all heaith facilities and other related facilities
to ensure their continued compliance with the rules and regulations in
accordance with this Act and to make recommendations to directors or
administrators of health facilities for the correction of deficiencies found
during the inspections;

(0) To study and adopt a system of classifying health facilities and other related
facilities in the Philippines;

(d) To periodically study and oversee the average costs of medical services
provided by health facilities and other related establishments throughout the
country and to make the proper recommendation to the Secretary of DOH,
whenever, in the interest of the public, the average costs of medical services in
the country or ina particular region requires regulation or readjustment.

(e) To determine, levy, assess and collect the appropriate permit fee, registration
fee, license fee and surcharges pertinent to the operation of facilities and
services except in cases where charges or rates are established by international
bodies or associations of which the Philippines is a participating member or by
bodies recognized by the Philippine government as the proper arbiter of such
charges or rates;

(© To coordinate and call the assistance of any department, office, agency or
instrumentality of the national or local government and other entities
concerned with any aspect involving health facilities for the effective
implementation of this Act;

(g) To maintain a register of health facilities and other related facilities with
licenses indicating the name of the facility, address or location, classification,
name of the director or administrator, ownership, number of authorized beds
and such other pertinent data as may be necessary;

(h) To promulgate and implement the rules and regulations governing the
registration, licensure and operations of health facilities and other related
facilities and to periodically review and amend the same, subject to the
approval of the Secretary and in consultation with the sectors concerned;


Provided, That such rules and regulations shall be in accordance with the
provisions of this Act;

(i) To grant a certificate of license for the operation and maintenance of health
facilities and services, and to suspend or revoke the same in accordance with
the provisions of this Act;

(i) To grant a certificate of license for the operation and maintenance of health
facilities and services, and to suspend or revoke the same in accordance with

the provisions of this Act;

(k) To submit yearly reports to the Secretary of Health, and the Chairpersons of
the Committees on Health of both Houses of Congress; and

(1) Perform such other functions as may be prescribed by law.

SECTION 5. Quasi-Judicial Powers. - To carry out its tasks more effectively, the

Bureau shall be vested with the following quasi-judicial powers:

(a) To investigate, hear and decide administrative cases initiated by the Bureau
motu proprio or filed by any person against a hospital or health service
establishment violating any provision of this Act and its implementing rules
and regulations and to impose appropriate administrative sanctions or
penalties provided in this Act;

(b) To promulgate rules governing the conduct of administrative hearings;
Provided, that in such proceedings, the Bureau shall not be bound by the
technical rules of evidence of the Rules of Court; Provided, further, that the latter
may be applied in a suppletory manner;

(c) To administer oaths and affirmations, and to issue subpoena duces tecum and
ad testificandum, requiring the production of such books, contracts,
correspondence, records, statement of accounts and other documents and the
attendance and testimonies of parties and witnesses, as may be material to the
investigation being conducted by the Bureau;

(d) To exercise contempt powers and impose appropriate penalties;

(e) To cause the prosecution of all cases involving violations of this Act and its
implementing rules and regulations; and

(f) To summarily order the closure of health facilities and other related facilities
operating without a license.


SECTION 6. Registration and License. - All health facilities and other related
facilities, government or private, shall be registered and duly licensed by the Bureau
before such facilities are allowed to operate or be opened to the public.

SECTION 7. Application for Registration and Issuance of License. - An
application for registration of a health facility or other related facility and for the issuance
of a license for its operation and maintenance, including that of a facility performing
medical ancillary services, shall be filed with the Bureau or its deputized office using the
form prescribed by it; Provided, That an applicant for a license to operate and maintain a
hospital pharmacy or a medical radiation facility shall seek the approval of the Food and
Drug Administration (FDA) and the Philippine Nuclear Research Institute (PNRI),
respectively. The application for registration shall be filed and a license shall be issued
upon due compliance of the applicant with the rules and regulations prescribed by the
Bureau pursuant to the provisions of this Act.

SECTION 8. Inspection. - The license to operate and maintain a health facility or
other related facility shall be issued by the Bureau only after it has conducted a
comprehensive on-site inspection and has certified that the applicant has satisfactorily
complied with the requisites prescribed in this Act and its implementing rules and
regulations (IRR).

SECTION 9. Suspension and Revocation of License, - The Bureau, after
conducting an administrative hearing, with due notice to the licensee, may suspend or
revoke the license to operate and maintain a health facility or other related facility of any
person, partnership, corporation or association for any of the following grounds:

(a) Violation by the licensee of any provision of this Act or any other existing law;

(b) Violation of the rules and regulations prescribed in the implementation of this
Act; and

(0) Violation of the President's order, issuance or directive that imposes a
maximum price over diagnostic, therapeutic, rehabilitative and other health
care services rendered in health facilities and other related facilities; and

(d) Failure to make necessary corrections or adjustment required by the Bureau in
the improvement or maintenance of facilities and services.

SECTION 10. Appeal. - The orders, rulings or decisions of the Bureau shall be
appealable to the Secretary of DOH.

SECTION 11. Nontransferability of License. - A license for the operation of a
health facility or other related facility shall not be transferable. The Bureau shall be


notified of any change in ownership, change of name of the health facility or other related
facility. Transfer of location of the facility shall require an application for a new license.

SECTION 12. Regulation of the Price of Health Care Services. - The President of
the Philippines, upon recommendation of the Secretary of DOH, shall have the power to
impose the maximum price over diagnostic, therapeutic, rehabilitative and other health
care services rendered in the facilities. Such price regulation shall be reviewed within
ninety (90) days from its imposition, in order to determine whether it shall be lifted or
extended as may be warranted.

SECTION 13. Penalties. - Any person, partnership, association or corporation
who establishes, operates, conducts, manages or maintains a health facility or other
related facility within the meaning of this Act without first obtaining a license, or violates
any provision of this Act or its IRR shall be liable to a fine of not less than Fifty thousand
pesos (P50,000,00) but not to exceed One hundred thousand pesos (P100,000.00) for the
first offense, not less than One hundred thousand pesos (P100,000.00) but not to exceed
Five hundred thousand pesos (P500,000.00) for the second offense, and not less than Five
hundred thousand pesos (P500,000,00) but not to exceed One million pesos
(P1,000,000.00) for the third and subsequent offenses. Each day that the health facility or
other related facility operates after the first violation shall be considered a subsequent
offense.

In addition to the penalties specified in the preceding paragraph, the Bureau may
summarily order the peer any health facility or other related facility found operating
without a license.

SECTION 14. Implementing Rules and Regulations. - The Secretary of DOH,
upon the recommendation of the Bureau, shall issue the necessary rules and regulations
for its effective implementation within sixty (60) days upon the effectivity of this Act.

SECTION 15. Separability Clause. - If any part or provision of this Act shall be
held unconstitutional or invalid, other provisions hereof which are not affected shall
continue to be in full force and effect.

SECTION 16. Repealing Clause. - Republic Act No. 4226, otherwise known as the
Hospital Licensure Act, is hereby repealed. Presidential decrees, executive orders, rules
and regulations and other issuances or parts thereof which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SECTION 17. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved.