NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. B. No._93
•22 JUL-7 P2:23
RECEIVED BY;
Introduced by SENATOR SONNY ANGARA
AN ACT
ESTABLISHING SATELLITE SPECIALTY HOSPITALS TO FACILITATE 
ACCESS TO SPECIALIZED MEDICAL CARE IN IDENTIFIED REGIONS OF 
THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
In 2015, the University of the Philippines National Health Institute reported 
that six out of ten Filipinos die without seeing a medical professional due to high 
cost of health care in the country that prevent people from accessing the needed 
medical sen/ices. Sadly, underprivileged Filipinos will also have to pay for 
transportation costs to and from the health facilities and other miscellaneous 
expenses for family members who accompanied the patients. To make matters 
worse, those suffering from heart, lung, kidney and pediatric diseases would have 
to travel in major cities where specialized health facilities are currently located.
A study by the World Health Organization revealed that despite several 
efforts of the national government to reform and strengthen the country's health 
care system, there still exists regional and socioeconomic disparity in the 
availability and accessibility of resources which resulted in maldistribution of health 
infrastructure and human resources across and within the regions. According to 
Department of Health, the ratio olf hospital beds is 1.2 beds per 1,000 population, 
which is comparable to the poorest countries in the world, such as the Sub-


Saharan Africa. In fact, the Philippines has a 10-year backlog in terms of 
expanding government beds.
To address the current inequities and geographical barriers in accessing 
specialized health care as most remote areas have been given less medical 
attention, the DOH issued Department Order No. 2021-0001 designating selected 
DOH hospitals as specialty centers for brain and spine care, cancer care, among 
others. The Order likewise provided for resource stratified frameworks to guide 
upgrading of hospitals towards respective specialties. To further support the policy 
of the DOH to increase the number of specialty hospitals, this bill mandates the 
existing specialty hospitals namely Philippine Heart Center (PHC), Lung Center of 
the Philippines (LCP), National Kidney and Transplant Institute (NKTI), and the 
Philippine Children's Medical Center (PCMC) to establish satellite hospitals in 
provinces which are geographically isolated from their region's tertiary care 
hospital to be managed and operated by the specialty hospitals pursuant to their 
respective charters. Furthermore, the bill prioritizes the establishment of specialty 
hospitals catering to the treatment of the main causes of death among Filipinos 
such as heart disease, vascular diseases, malignant neoplasms, avitaminosis and 
other nutritional deficiency, and chronic lower respiratory diseases.
Considering the need to bring specialized medical services closer to Filipino 
patients through the timely construction of satellite hospitals, the bill also exempts 
the procurement of medical equipment and supplies to be used by the satellite 
specialty hospitals from the bidding process as mandated under Republic Act. No. 
9184 or the "Government Procurement Reform Act".
Pursuant to the mandate of the 1987 Philippine Constitution for the State to 
adopt an integrated and comprehensive approach to health development, it is 
imperative for the national government to guarantee equitable access to quality 
health facilities and specialized healthcare services by all Filipinos. Thus, the 
passage of this bill is earnestly sought.
NY ANGARA


Ornate
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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
11 JUL-7 P2:23
SENATE
S. B. No. 93
RECEIVED t!Vi
Introduced by SENATOR SONNY ANGARA
AN ACT
ESTABLISHING SATELLITE SPECIALTY HOSPITALS TO FACILITATE 
ACCESS TO SPECIALIZED MEDICAL CARE IN IDENTIFIED REGIONS OF 
THE PHILIPPINES AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known and cited as the
2 
'Satellite Specialty Hospitals Act of2022."
3 
SEC. 2. Declaration of Policy. - Section 15, Article II of the 1987
4 
Constitution mandates that the State shall protect and promote the right to health
5 
of the people and instill health consciousness among them. Towards this end, the
6 
State 
shall adopt an integrated 
and comprehensive approach to health
7 
development by providing them specialized health services, which shall be
8 
available and accessible to all the people at affordable cost.
9 
SEC. 
3. Establishment of Satellite Specialty Hospitals or
10 
Specialized Units. - The following specialty hospitals are mandated to establish
11 
satellite hospitals in identified regions to be managed and operated pursuant to
12 
their respective charters:
13 
(1) Philippine Heart Center created under Presidential Decree No. 673;
14 
(2) National Kidney and Transplant Institute created under Presidential
15 
Decree No. 1832;


1 
(3) Lung Center of the Philippines created under Presidential Decree No.
2 
1823; and
3 
(4) Philippine Children's Medical Center created under Presidential Decree
4 
No. 1631
5 
Provided, That\hese specialty hospitals must formulate prioritization plans
6 
for the purpose of implementing this Act, subject to the following
7 
considerations:
8 
(a) The specialty hospitals shall craft the criteria for the identification
9 
and development of their satellite hospitals, based on the
10 
following:
11 
(i) The top burden of disease in the region;
12 
(ii) Legal mandates specified in other laws such as but not
13 
limited to the Republic Act No. 11215 or the "Integrated
14 
‘ 
Cancer Control Act", Republic Act No. 11036 or the
15 
"Mental Health Act", and Republic Act No. 9994 or the
16 
"Expanded Senior Citizens Act"; and
17 
(iii)Other considerations that the specialty hospitals may
18 
deem important for the selection process.
19 
(b) Provinces which are geographically isolated from their region's
20 
tertiary care hospital shall likewise be given priority for the
21 
establishment of satellite specialty hospitals within the nearest
22 
general hospital, whichever is feasible;
23 
Nothing in this Act shall be construed as restricting the right of the
24 
Department of Health (DOH) to establish specialty hospitals or specialized units in
25 
DOH hospitals in different regions.
26 
SEC. 4. Period of Implementation. - The establishment of at least one
27 
(1) satellite specialty hospital in identified region/s shall be completed over a
28 
period of five (5) years: Provided, That payments for amortization of outstanding
29 
multi-year contract obligations incurred under this Act may extend beyond this
30 
period.


1 
SEC. 5. Minimum Standards of Construction. - The Health Facilities
2 
and Services Regulatory Bureau of the Department of Health shall issue guidelines
3 
for the minimum design standards of specialty hospitals in accordance with ail
4 
applicable laws, rules and regulations: Provided, That the application for a permit
5 
to construct a special hospital shall be accompanied by a hospital plan: Provided,
6 
Further, That no permit to construct a special hospital can be issued without
7 
complying with the minimum standards set forth in the guidelines to be issued
8 
pursuant to this Section.
9 
SEC. 6. Procurement. - Procurement of medical equipment and supplies
10 
to be used by the satellite specialty hospitals shall be exempt from the provisions
11 
on bidding process required under Republic Act No. 9184 or the "Government
12 
Procurement Reform Act" and other relevant laws: Provided, That the following
13 
information and documents related to the procurement shall be published in the
14 
Government Procurement Policy Board online portal, the website of the procuring
15 
entity concerned, if available, and at any conspicuous place reserved for this
16 
purpose in the premises of the procuring entity within seven (7) working days
17 
from the date of acceptance of the award:
18 
(i) 
Project name;
19 
(ii) Approved budget for contract;
20 
(iii) Contract period;
21 
(iv) Name of winning supplier, distributor, manufacturer, contractor or
22 
consultant;
23 
(v) Amount of contract as awarded;
24 
(vi) Notice of award;
25 
(vii) Date of award and acceptance;
26 
(viii) Contract or purchase order; and
27 
(ix) A certification stating that the procuring entity exerted all efforts to
28 
secure the most advantageous price to the government based on
29 
existing price data of the agency, the DTI or other relevant agencies
30 
or preliminary market scanning done by the 
agency showing prevailing
31 
market prices and practice.


1 
SEC. 7. Tax exemptions. - All donations, contributions or endowments
2 
which may be made by entities or persons to the specialty hospitals for the benefit
3 
of their satellite hospitals shall be exempt from income and gift taxes. The
4 
importation of medical equipment to be used by the satellite specialty hospitals
5 
shall likewise be exempt from import duties, taxes, and other fees.
6 
SEC. 8. Report to Congress. - Within one hundred twenty (120) days
7 
from the effectivity of this Act, the executive directors of the specialty hospitals
8 
shall present a report to Congress detailing the construction plan of said satellite
9 
specialty hospitals, which shall include the prioritization plan as provided under
10 
Section 3 of this Act.
11 
For this purpose, the Congress shall establish a Joint Congressional
12 
Oversight Committee composed of five (5) members of each house to be
13 
appointed by the Senate President and the House Speaker, respectively. This
14 
Committee shall determine whether such acts, orders, rules and regulations are
15 
within the restrictions provided herein.
16 
SEC. 9. Sunset Review. - As the need arises or within five (5) years after
17 
its effectivity, the Congressional Oversight Committee shall conduct a sunset
18 
review of this Act. The term 'sunset review' shall mean a systematic evaluation of
19 
the accomplishments and impact of this Act for purposes of determining remedial
20 
legislation.
21 
SEC. 10. Appropriations. - The amount necessary for the
22 
implementation of the provisions of this Act shall be taken from the current year's
23 
budget of the specialty hospitals enumerated in Section 3 of this Act. Thereafter,
24 
such sums as may be necessary for the continued implementation of this Act shall
25 
be incorporated in the annual General Appropriations Act.
26 
SEC. 11. Implementing Rules and Regulations. - The Department of
27 
Health, in coordination with the specialty hospitals enumerated in Section 3
28 
hereof, shall promulgate the rules and regulations implementing the provisions of
29 
this Act within sixty (60) days from its effectivity.


1 
SEC. 12. SeparabUity Clause. - If for any reason, any part or provision
2 
of this Act is declared invalid or unconstitutional, the remaining parts or provisions
3 
not affected shall remain in full force and effect.
4 
SEC. 13. Repealing Clause. - All laws, presidential decrees, executive
5 
orders, rules and regulations contrary to or inconsistent with the provisions of this
6 
Act are hereby repealed or modified accordingly.
7 
SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days after its
8 
publication in the Official Gazette or in a newspaper of national circulation.
Approved,