REPUBLIC OF THE PHILIPPINES 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1315 
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Introduced by Representative MARLYN L. PRIMICIAS-AGABAS 
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EXPLANATORY NOTE 
This bill seeks to prohibit the privatization and corporatization of public 
hospitals, public health facilities and public health services in the country. This 
bill has already been approved by the House of Representatives on its 3rd and 
final reading in the 17th Congress. It is now being filed to secure the government’s 
commitment “to protect and promote the right to health of the people and to 
instill health consciousness among them (Section 15, Article II, of the 1987 
Philippine Constitution). 
Public health care in the Philippines is of paramount importance. It is a 
constitutionally guaranteed right. Section 11, Article XIII, of the 1987 
Constitution mandates 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. 
Privatization of public hospitals, facilities and other health services is a violation 
of this right. Privatization of public health services is an offense to the people. It 
is an affront to ordinary wage earners who cannot afford the high cost of 
hospitalization, and an outrage to those who have none. It is a challenge to the 
government’s initiative in delivering quality social services to the people 
especially the poor and the marginalized.  
Privatization in healthcare is defined by the World Health Organization as 
a “process in which non-governmental actors become increasingly involved in 
the financing and/or provision of health care services.”i It is simply the 
divestment or sale by the government of its assets in favor of the private sector. 
Privatization of public health services will definitely do more damage than good 
to our people. It is an avenue leading to a spiral rise of morbidity and mortality 
July 7, 2025
8:00 am


in the countryside where public health care service will just become a commodity 
with a high price tag attached to it. 
In view thereof, the passage of this bill is urgently sought. 
_________________________ 
1J Muschell, Technical Briefing Note on Privatization in Health, 1995. 
MARLYN L. PRIMICIAS-AGABAS 


REPUBLIC OF THE PHILIPPINES 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. 1315 
------------------------------------------------------------------------------------------ 
Introduced by Representative MARLYN L. PRIMICIAS-AGABAS 
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AN ACT PROHIBITING THE PRIVATIZATION AND CORPORATIZATION OF PUBLIC  
HOSPITALS, PUBLIC HEALTH FACILITIES AND PUBLIC HEALTH SERVICES, AND 
PROVIDING PENALTIES FOR VIOLATIONS THEREOF 
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Anti-Privatization 
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of Public Hospitals, Health Facilities and Health Services Act”. 
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Sec. 2. Declaration Of Policy – It is the policy of the State to ensure the 
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protection and promotion of the right to health of the people and to instill 
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health consciousness among them. Further, the State shall endeavor to 
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make essential goods, health and other services available to all people at 
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affordable cost.  
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SEC. 3. Definition of Terms. -  As used in this Act: 
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(a) Indigent/Service/Poor patients refer to those who have no source
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of income, or whose family income is below the mandated minimum 
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daily wage and/or below the minimum monthly cost of living as set 
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by appropriate government agencies. 
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(b) Privatization refers to the process in which non-government
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actors become increasingly involved in the financing and the 
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provision of health care services which include: outright sale; public-
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private partnership; corporatization; contracting out of equipment; 
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joint venture; franchising; management control and corporatization; 
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leasing; and user charges; 
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(c) Public hospitals refer to all Department of Health (DOH) retained 
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and national hospitals, provincial and regional hospitals under the 
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local government, including specialty hospitals with separate 
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legislative charters like the Philippines Heart Center, the National 
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Kidney and Transplant Institute, the Lung Center of the Philippines 
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and the Philippines Children’s Medical Center; 
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(d) Public health facilities refer to health centers, lying-in clinics, and 
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barangay health stations under the national or local government; and 
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(e) Public health services refer to all diagnostic, laboratory, medical, 
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surgical, and health-related services provided by public hospitals and 
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public health facilities to indigent, service or poor patients. 
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SEC. 4. Prohibition of Privatization of Public Hospitals, Public Health 
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Facilities, and Public Health Services. – No public hospital, public health 
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facility and public health services shall be privatized. Likewise, under no 
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circumstance shall the Secretary of Health or any person, whether natural 
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or juridical, initiate, cause, and approve the privatization of any public 
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hospital, public health facility or public health services. 
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This prohibition against privatization shall cover specialty hospitals 
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with separate legislative charters like the Philippine Heart Center, the 
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National Kidney and Transplant Institute, the Lung Center of the Philippines 
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and the Philippines Children’s Medical Center. 
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SEC. 5. Bed Allotment for Indigent/Service/Poor Patients in Public 
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Hospitals. – At least ninety percent (90%) of the total bed capacity of all 
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public hospitals shall be allotted for indigent/service/poor patients, pursuant 
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to Republic Act No. 1939, otherwise known as “ An Act Prescribing the 
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Appropriate Share of the National, Provincial, City and Municipal 
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Governments in the Financial Contributions for the Operation and 
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Maintenance of Free Beds in Government Hospitals and/or the 
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Establishment of Additional Wards or Hospitals in the Philippines”.  
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SEC. 6. Liability and Accountability. – Any person, whether natural or 
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juridical, who initiates, causes, and approves the privatization of any public 
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hospital, public health facility or public health services shall be considered 
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in violation of this Act. 
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. 7. Penalties. – Any person who violates any provision of this Act shall be 
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penalized accordingly: 
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(a) First Offense – A fine of not less than One hundred thousand 
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pesos (PhP100,000.00) but not more than Two hundred thousand 
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(PhP200,000.00) and suspension of one (1) to two (2) years from 
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public office; 
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(b) Second Offense – A fine of not less than Two hundred thousand 
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pesos (PhP200,000.00) but not more than Five hundred thousand 
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pesos (PhP500,000.00) and temporary disqualification from holding 
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any public office for not less than three (3) years but not more than 
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six (6) years; and 
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(c) Third Offense -  A fine of not less than Five hundred thousand 
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pesos (PhP500,000.00) but not more than Eight hundred thousand 
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pesos (PhP800,000.00) and removal from public office and perpetual 
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disqualification from holding any public position or office. 
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SEC. 8. Implementing Rules and Regulations. – The Secretary of the 
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Department of Health shall promulgate the rules and regulations necessary 
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to implement the provisions of this Act within ninety (90) days from its 
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effectivity.  
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SEC. 9. Separability Clause. – If any provision of this Act is declared invalid 
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or unconstitutional, the other provision hereof which are not affected thereby 
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shall continue to be in full force and effect. 
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SEC. 10. Repealing Clause. -  All laws, order, decrees, rules and 
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regulations and other issuances or parts thereof which are inconsistent with 
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the provisions of this Act are hereby repealed or modified accordingly. 
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SEC. 11. Effectivity. – This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in any newspaper of general circulation. 
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Approved, 
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iJ Muschell, Technical Briefing Note on Privatization in Health, 1995.