Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2615

Introduced by HON. JOSEPH EMILIO A. ABAYA

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, fundamental, 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
activity.

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 private 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, a unit of the University of the
Philippines-Manila (UPM), was established as a center for excellence for health
research and development, mandated to (1) 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, peoples’ organizations, and other members

of the civic society in effectively implementing programs, projects and services
i


that will promote the health and well-being of every Filipino, prevent and control
diseases among populations at risk, protect individuals, families and communities
exposed to hazards and risks that could 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
through the Philippine Council for Health Research and Development, is
mandated to (1) provide central direction, leadership and coordination of scientific
and technological efforts; (2) formutate 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 stil 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 priority we grant to health research and development (R & D) activities.
This bill, therefore, seeks to oblige a number of government institutions to allocate a
particular portion of their gross annual revenue or charge additional fees for health
research and development activities.

In view of the foregoing, the immediate passage of this bill is sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2615

Introduced by HON. JOSEPH EMILIO A. ABAYA

AN ACT INSTITUTIONALIZING THE PHILIPPINE NATIONAL HEALTH
RESEARCH SYSTEM, ESTABLISHING THE PHILIPPINE NATIONAL HEALTH
RESEARCH FUND PROVIDING FOR ITS ADMINISTRATION
AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines
In Congress assembled:
Article 4

SECTION 1. Short Title. This Act shall be known as the “Philippine National
Health Research System Act of 2010.”

SEC 2. Declaration of Policy. It is hereby declared the policy of the
State to:

(A) protect and promote the right of health to the people and instill health
consciousness among them; and

(B) improve the quality of life of every Filipino through health research and
development initiatives.

SEC. 3. Definition of Terms. 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.


(B)’Research and Development” (R & D) for health refers to the generation of
knowledge on all aspects of health, the factors affecting it, and ways of
promoting, protecting and improving it.

(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,
which connect to, and converge with, the wider health, economic, political,
educational and science and technology (S & T) systems of the country.

(D)"Regional Health Research Systems” refers to the regional health
research consortia or communities in the 16 regions of the country which
mirror the PNHRS framework at the regional level.

(E)"National Unified Health Research Agenda’ is a set of research priorities
determined by the country's stakeholders which addresses the health needs
of the population especially the marginalized, disadvantaged and those with
special needs. This agenda is a platform to advocate for local, national, and
international support.

(F)"Core agencies” refer to the principal national health and health research
related agencies namely: the Department of Health (DOH), the Department of
Science and Technology-Philippine Council for Health Research and
Development (DOST-PCHRD), University of the Philippines Manila - National
Institutes of Health ((UPM-NIH), and the Commission on Higher Education
(CHED).

(G) ‘Philippine National Health Research Fund (PNHRF)" refers to a special
fund which by legislative action segregates specified revenues for health
research purposes.

(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 who are concemed with and affected by
health and development

(1) “Management of Fund” - involves the generation, allocation and utilization,
of the PNHRF, including government and non-government sources, and both
domestic and international sources.

Article 2
‘The Philippine National Health Research System

SEC. 4. Creation of the Philippine National Health Research System. The

Philippine National Health Research System (PNHRS) is hereby constituted to
improve the health status, productivity, and the quality of life of Filipinos by:

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(1)Ensuring that health research is linked to the health system needs;;
(2)Ensuring that investments in health research yield the most benefit;

(3)Promoting good govemance in research towards high performing and
ethical health research organizations;

(4)Engaging in national and international partnerships and networks for health
research development

SEC. 5. Composition of the PNHRS. The PNHRS shall be composed of the
Governing Council (GC), Steering Committee, the Technical Working Committees
(TWC), the Secretariat, and the whole health research community. The
interrelationships among these various components shall be described in the IRR of
this Act.

SEC. 6. Creation of the PNHRS Governing Council, The PNHRS GC expands
the existing Governing Council of the Philippine Council of Health Research and
Development (PCHRD), and shall be composed of the following:

(1)The Secretary of the Department of Science and Technology (DOST), as
Chair, :

(2)The Secretary of the Department of Health (DOH) or his/her designated
permanent representative as Co-Chair,

(3)The Chair of the Commission on Higher Education (CHED);

(4)The Chancellor of the University of the Philippines Manila (UPM);

(6)The National Nutrition Council Director;

(6)The PCHRD Executive Director;

(7)President of the Philippine Health insurance Corporation (PHIC);

ine ieecaer General of the National Economic Development Authority

(9)The Professional Regulation Commission (PRC) Chairperson
(10)The Administrator of the National Statistics Office
(11)Assistant Secretary, DENR

(12)Representative from the Philippine health industry;
5


(13)Representative from non-government organizations (NGO);

(14)Representative from Academe;

(15)Representative from League of Govemors; and

(16-17) Representatives from the Regional Health Research Systems.
Representatives 1-11 shall serve as Ex-Officio Members while those mentioned in
numbers 12 to 17 shall be nominated by the core agencies, and appointed by the
President of the Philippines for a term of three (3) years; provided however, that for
those first appointed representatives from Philippine health industry, NGO network
and academe shall serve for three (3) years and those first appointed
representatives from the League of Govemors and the Regional Health Research
Development Committees shall serve for two (2) years. The qualifications of the
representatives in numbers 12-17 shall be provided for in the Implementing Rules
and Regulations of this Act.
Majority of the members of the GC shail constitute a quorum in all meetings.

SEC. 7. Functions of the PNHRS Governing Council. The PNHRS GC shall:

(1})set policies and directions for the PNHRS;

(2)periodically review and approve the long-term plans and programs of the
PNHRS;

(B)evaluate and approve the National Unified Health Research Agenda
developed and integrated by the Core Agencies, and identify areas that will
serve as the foci of the National Health Research Agenda;

(4)establish the criteria for individuals/groups/organizations/institutions which
can apply for grants;

(S)approve investments of the PNHRF created under Section 11 of this Act
and described in Section 14 of this Act;

(©)review and approve grants and/or donations to any government agency
elated to health research from domestic and international funding agencies;

(yreview and approve research programs; and,

{8)create committees as the need arises.


SEC. 8. Creation and Functions of the Steering Committee. The GC shall
create a Steering Committee composed of the Chairs of the six PNHRS Technical
Working Committees. The functions of the Steering Committee are as follows:

(1) recommend policies to the Governing Council;
(2) perform oversight function on the implementation of PNHRS activities;

(3) coordinate and harmonize the activities of the six PNHRS Technical
Working Committees, and;

(4) monitor and report the progress of the committees’ programs to the
Governing Council

SEC. 9. Creation of PNHRS Technical Working Committees. The GC shall

create the following Committees composed of representatives from the Core
‘Agencies and various stakeholders

(1)Research Management - provide technical and policy advice in setting
health research agenda, formulating policies and addressing matters related
to priority setting, proposal review and funding, research fund management,
and project monitoring and evaluation;

(2)Ethics - ensure adherence to universal ethical principles and values for the
protection of the dignity and welfare of health research participants and for the
preservation of the integrity of research data;

(3)Capacity Building - provide technical support and policy advice in the
development of quality human and institutional resources for health research;

(4)Structure, Organization, Monitoring and Evaluation - provide technical
support and policy advice to ensure that the stewardship and leadership of
the PNHRS espoused health research that connects to health needs and
desired health outcomes, policy and action;

(6)Research Utilization - provide technical support and policy advice to
develop and sustain knowledge management systems, communication
advocacy strategies to ensure that research is translated to desired health
outcomes, policy and action;

(6)Resource Mobilization - provide technical support and policy
advice/support to secure sustainable financing, and ensure equity, effective
and efficient use of resources for health research and development

The Committees shall develop and monitor their respective strategic plans. They
shall work closely with the core agencies and plan implementers.


SEC. 10. The Executive Director and Secretariat. The PCHRD Executive
Director shall be the PNHRS Executive Director, responsible for, among others, the
coordination and oversight functions of the System assisted by the PCHRD
secretariat.

SEC. 11. Regional Health Research Systems. The PNHRS framework shall
be mirrored in all the regions of the country, forming a network of regional research
consortia. The consortium set-up varies depending on the culture and resources of
the region. Each regional health research system shall address concems relating to
health research agenda, development of human resource in health research,
conduct of researches, dissemination of research results, research utilization,
resource mobilization, leadership and management.

Article 3
The Philippine National Health Research Fund

SEC. 12. Creation and Nature of the Philippine National Health Research
Fund. A Special Research Fund hereinafter called the Philippine National Health
Research Fund (PNHRF) is hereby created under the management of the GC
through the Secretariat.

The PNHRF shall not be used for purposes other than those provided in Section 13
of this Act. Moreover, no portion of the funds of the PNHRS or income thereof shall
accrue to the General Fund of the national government and its political subdivisions,
instrumentalities and other agencies including government-owned and controlled
corporations except as may be allowed under this Act.

SEC. 13. Uses of the PNHRF. The main objective of this fund is to provide
‘sustained financial support for knowledge management and its translation into
efficient and effective health policies 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
oer: Specifically, it shall be utilized for any or all of, but not limited to, the

lowing:

(1)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 reflect the emerging health needs of Filipinos and the evolution of
the health system, and that supports health policy making:

8


(4)promote research that meets the highest international scientific standards
of excellence and ethics and that pertain to all aspects of health, including
biomedical research, clinical research, health systems, health services, the
health of populations, societal and cultural dimensions of health and
environmental influences on health;

(address emerging health opportunities, threats and challenges (e.g.
swine/avian flu, SARS) and accelerate the discovery of cures and treatments
and improvements to healthcare, prevention and weliness 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.

SEC. 14. Sources of PNHRF and Method of Collection.
(1) The PNHRS shall raise Ten Billion Pesos for PNHRF;

(2) The PNHRF shall be sourced out from the following agencies, but not
limited to:

a. Ten percent (10%) of the allowable administrative expense of the
Philippine Health Insurance Corporation (PHIC) until the PNHRF
teaches the sum of 10 Billion pesos.

b. Three percent (3%) of the annual revenue collected by the National
Statistics Office (NSO) from birth, death and marriage certificate
issuances;

c. Ten percent (10%) of the total fees collected by the Professional
Regulation Commission (PRC) from the issuance and renewal of all
professional licenses;

c. Ten pesos (P10.00) for every motor vehicle transaction at the
Department of Transportation and Communications-Land Transportation
Office (DOTC-LTO);

f. One percent (1%) of the total revenues generated by the Department
of Environment and Natural Resources from fines and penalties
collected under the Clean Air Act and the Clean Water Act;

h. Other appropriations from the General Appropriations Act; and

i. Donations and grants from domestic and international sources duly
accepted/approved by the GC which do not constitute a breach of

9


3)

@)

6)

Philippine laws and recognized international treaties.

Ail agencies mentioned in the preceding paragraph are hereby directed
to automatically remit semi-annually the amount prescribed by this Act to
the specified account established by the GC on or before the 31% day of
January and July of each year. This does not preciude the agencies from
making advance contributions provided they fall within the specifications
of this Act.

The rates indicated in Paragraph 1 hereof shall be reviewed and updated
every five (5) years.

Collections shall continue until the PNHRF reaches ten billion pesos.

SEC. 15. Management and Allocation of Fund

(1)The GC shall manage PNHRF in accordance with generally accepted
auditing standards;

(2)The PNHRF shall be deposited in the authorized government depository
bank.

(3)The GC shail allocate the interest income and investment earnings of the
PNHRF to programs and projects in the National Unified Health Research
Agenda (NUHRA).

(4)The GC authorizes the depository bank to invest the PNHRF that was not
allocated/obligated during the current year in any of the following

a. interest-bearing bonds, securities, and other evidence of indebtedness
of the Republic of the Philippines and other evidences to which full faith
and credit and unconditional guarantee of the Republic of the Philippines
are pledged.

b. In interest-bearing deposits and foans to or securities in any domestic
bank doing business in the Philippines: Provided, that in the case of such
deposits, this shall not exceed at any time the unimpaired capital and
surplus or total private deposits of the depository bank,

smaller. Provided, further, that said bank shall first have been designated
as depository for this purpose by the Monetary Board of the Bangko
Sentral ng Pilipinas (BSP); and

¢. In preferred stocks of any solvent corporation or institution created or
existing under the laws of the Philippines: Provided, that the issuing,
assuming, or guaranteeing entity or its predecessor has paid regular
dividends upon its preferred or guaranteed stocks for a period of at least

10


three (3) years immediately preceding the date of investment in such
preferred or guaranteed stocks. Provided further, that if the stocks are
guaranteed, the amount of stocks so guaranteed is not the excess of fifty
percent (50%) of the amount of the preferred common stocks as the
case may be of the issuing corporation. Provided furthermore, that if the
corporation or institution has not paid dividends upon its preferred
stocks, the corporation or institution has sufficient retained eamings to
declare dividends for at least two years on such preferred stocks and in
common stocks options.

4d. Board can also invest in common stocks of any solvent corporation or
institution created or existing under Philippine laws, in the stock
exchange with proven track record of profitability and payment of
dividends over the last three (3) years, or in the 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.

(5) The core agencies, namely: DOST-PCHRD, DOH, CHED and UP-NIH
shall continue The operational expenses of the PNHRS shall come
from the Maintenance and Other Operating Expenses (MOOE) budget of
the

(6) The GC, through the Secretariat shall submit periodic reports to agencies
mentioned in Section 6 on the use of the PNHRF.

Article 4
Final Provisions

SEC. 16 Monitoring, Evaluation, Accountabilities, and Annual Report. Regular
monitoring and evaluation mechanisms shail be done by the GC through the
secretariat to determine the accountabilities of the System to the Contributing
Agencies. The specifics/details of monitoring, evaluation, accountabilities and

ane reporting shali be provided for in the Implementing Rules and Regulations of
is Act.

SEC. 17. implementing Rules and Regulations. The Core Agencies shall

promuigate the Implementing Rules and Regulations of this Act within a year after
the effectivity hereof.

SEC. 18. 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.

u


eauaueene

SEC. 19. 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.

SEC. 20. Effectivity Clause. This Act shail take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation