Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
First Regular Session
3653
HOUSE BILL NO._____

Introduced by REP. RUWEL PETER S. GONZAGA

EXPLANATORY NOTE

In the free market of ideas none takes precedence over those that helped mankind. When a
legislative proposal is initiated with the end purpose of alleviating the plight of the underprivileged
and oppressed members of society, there is no other logical response but to support such an

iative.

One such idea is the establishment of Malasakit Centers which is a system of coordinated
involvement of government agencies and institutions that reaches out to free the people from
poverty through policies that provide adequate social services .Envisioned as a one ~ stop shop that
will cater to the marginalized segments of our society it has proven itself to be an important lifeline
that gives hope to those who have already given up the fight. By providing financial assistance to
impoverished individuals and indigent families it has become a visible instrument in the
government's thrust of improving the lives of the people. The granting of medical and other
invaluable assistance to such qualified persons was said to be a revolutionary way of doing away
with red tape and of putting into good use the people’s taxes.

In order to maintain this program even after the end of the current administration wherein
this initiative flourished thru the efforts of former assistant to the president now senator Christopher
Lawrence “Bong” Go, there is a need to institutionalize it to provide a significant and continuing
intervention on the part of the government that will benefit the people.

This representation strongly believes that Malasakit Centers play an important and essential
role in delivering basic needs to our people especially those who are considered belonging to the
disadvantaged sectors of our society. Being a witness to the daily struggles of my constituents it
only makes sense to become one of those who will staunchly move for the passage of this important

piece of legislation.

In view of the foregoing approval of this bill is earnestly sought.

aa Ale, 6 S. GONZAGA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
First Regular Session

3653
HOUSE BILL NO.

Introduced by REP. RUWEL PETER S. GONZAGA

AN ACT
INSTITUTIONALIZING MALASAKIT CENTERS TO COMPLEMENT THE
IMPLEMENTATION OF REPUBLIC ACT NO. 11223 OTHERWISE KNOWN AS THE
“UNIVERSAL HEALTH CARE ACT” BY REQUIRING PHILHEALTH TO ESTABLISH,
OPERATE AND MAINTAIN MALASAKIT CENTERS IN ALL DOH, LGU, SUC and DND
HOSPITALS IN THE COUNTRY, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES

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 “Malasakit Centers Act of
2019."

SECTION 2. Declaration of Policies.- It is the declared policy of the State to improve the
delivery of health care services to the people, and to ensure financial assistance for hospital and

medical expenses are available and accessible to the people.
SECTION 3. Definition of Terms. — For purposes of this Act, the following terms shall

(a) DOH Hospital refers to a hospital under the management and administration of the
Department of Health (DOH), including the four (4) corporate hospitals under the
Secretary of Health, namely: Philippine Heart Center, Lung Center of the Philippines,
National kidney and Transplant Institute and the Philippine Children’s Medical Center;

(6) DND Hospital refers to & hospital managed by the Department of National Defense;

(c) Financial Assistance or Material Assistance refers to actual cash or check which covers
burial, transportation, and other allied assistance given by agencies as mandated by
existing laws, rules and regulations to provide such assistance;

(d) Indigent Patient refers to patient who has no visible means income, or whose income is
insufficient for the subsistence of his his/her family, as identified by the Department of
Social Worker of the health facility;

(©) Local Government Unit (LGU) Hospital refers to a hospital managed by the local
government units, usually the provincial government;

(® Malasakit Center refers to a processing Center for Philhealth and one-stop shop for
Filipinos in need of medical assistance;


(g) Medical Assistance refers to assistance for out-of-pocket expenditure in y form of

coupon, stub, guaranty letter, promissory note or voucher that has monetary value, given

directly to individual recipients or beneficiaries to address their immediate needs;

(h) Out-of-pocket expenditures refers to medical and surgical services not currently paid for

or sufficiently reimbursed by PhilHealth under Republic Act No. 11223 or the Universal

Health Care Act, or other financing sources;

(

Poor Patient refers to those not classified as indigent but are otherwise considered poor

or with financial difficulty to access adequate medical care and/or pay hospital bills

because of certain unavoidable circumstance, such as but not limited to;

1.

Senior Citizens, person with disability (PWD),orphans, abused women and children
as defined by RA 9262 or the Anti-Violence Against Women and Their Children Act
of 2004 and RA 7610 or the Special Protection of Children Against Abuse,
Exploitation and Discrimination Act;

.. Patients with catastrophic illness or any illness as a primary condition that is life or

limb-threatening and requires prolonged hospitalization, extremely expensive
therapies or other special but essential care that would deplete one’s financial
resources, unless covered by special health funding policies;

. Unemployed or without gainful employment;
. Suspected or confirmed victims of torture as defined by Republic Act No. 9745 or

the Anti-Torture Act of 2009;

. Soldiers and police rendered disabled to be gainfully employed and their dependents

and dependents of soldiers and police killed in action;

. Rebel returnees, prisoners of war and their dependents;
. Victims of calamities or disasters such as but not limited to typhoons, earthquake,

whose place of residence are officially under a state of emergency or calamity; and

(j) SUC Hospital refers to hospitals managed by State Universities and Colleges.

SECTION 4. Malasakit Centers. - To complement the implementation of Republic Act

No. 11223,

otherwise known as the Universal Health Care Act, there shall be established a

Malasakit Center in each DOH, LGU, DND and SUC Hospital in the country which shall serve as
(a) processing center for all Philhealth concerns regarding coverage, billing, health benefits
packages, patient navigation and referral to the health care provider network, and (b) one-stop shop

medical assistance to cover out-of-pocket medical expenses of indigent and poor patients.

The Philhealth shall administer and manage the Malasakit Centers in close

coordination with the DOH and DSWD. Each Malasakit Center shall consist of duly designated
representatives from the Philhealth, DOH and DSWD with the following delegation of functions:
1.The Philhealth representative shall be in charge of the over-all operation of the Malasakit

Center. He/she shall assist and process the concerns of both direct and indirect
contributors to Philhealth regarding the implementation or Republic Act No. 11223,
including but not limited to coverage, billing, health benefits packages, financial

concerns.


2. The Philhealth representative shall also assist in patient navigation and referral to the
health care provider network;
3. The DOH representatives shall be in charge of providing medical assistance to indigent
and poor patients; and
4. The DSWD representative shall be in charge of providing financial or direct assistance
to indigent and poor patients.

SECTION 5. Provision of Medical Assistance. — The DOH shall provide medical
assistance to indigent and poor patients through the Malasakit Center which shall be charged from
the annual appropriation of the DOH for assistance to indigent patients.

(@) Other appropriations earmarked by national government agencies and local

government units purposely for medical assistance to indigent and poor patients:
Provided, that appropriations earmarked for a specific hospital shall only be used
for that specific hospital; and

(6) Donations and grants-in-aid: Provided, that donations and grants donated for a

specific hospital shall only be used for that specific hospital: Provided further, that
the donations and grants shall only be used for the purpose specified by the donor.

The DOH shall issue guidelines for the proper implementation of the medical assistance to
indigent and poor patients which shall include order of charging from the aforementioned sources of
financing, availment procedures, transfer and release of funds, recording and reporting, monitoring
and evaluation, partnerships with private hospitals, among others.

The DOH shall make a quarterly report to the office of the President and Congress regarding
the expenditures or disbursement of the medical assistance to indigent and poor patients.

SECTION 6. Medical Assistance. - The medical Assistance shall cover for medical and
surgical services not currently paid for or sufficiently reimbursed by Philhealth in accordance with
Republic Act No. 11223 or other financing sources, and shall be used for the following drugs,
medicines, goods and other services prescribed by the physician of the health facility such as but not
limited to;

a. Laboratory, imaging and all other diagnostic procedures;

b. Drugs and medicines included in the Philippine National Drug Formulary (exemption to
be cleared by Pharmaceutical Division);

Supplies, orthopaedic/assistive devices, prosthesis, blood and blood products;

|. Dental Services, except those that are for aesthetic purpose and not medically indicated;

. All clinically indicated medical and surgical procedures, whether emergency or elective;

f. Prescribed post-hospitalization rehabilitation services, aftercare program, appropriate
mental and psychological support, including those done on an outpatient basis;

g. In case of non-availability of clinically indicated drugs, medicines, tests, services or

ep 9

procedures in government health facilities, the concerned government health facility may


enter into contract with DOH-accredited private health facility to provide the need drug,
test, service procedure to the patient, charged against the DOH hospital;
h. All hospital bills including professional fees, provided that the expenses for professional fees
shall not exceed fifty percent (50%) of the approved assistance; and
i, All other medical, health, documentary and related services billed by the hospital.
Provided, That medical assistance to patients shall be based on need as recommended by
the medical social worker attending physician, approved by the chief of Hospital/Medical Center,
Chief of the institution involved and DOH authorized officials, subject to availability of funds.

SECTION 7. Provision of Financial Assistance. - The DSWD shall provide financial
assistance through the Malakasit Center to indigent and poor patients, individuals in emergency
situations, under distress or are in need of supplemental financial support due to health or medical
conditions, sickness or disease; funeral and burial concerns, which also includes the most direct and
economical transportation expense to or from place of residence or specific destination.

The provision of financial assistance through Malasakit Centers shall be charged to the
annual appropriation of the DSWD for assistance to individuals and families in difficult
circumstances. The DSWD shall issue policies and guidelines on the release of such assistance for

the proper implementation of the program.

SECTION 8. Establishment of Malasakit Centers. — The Philhealth and DOH shall, in the
establishment of the Malasakit Centers, undertake consultations with all DOH, LGU, DND and
SUC hospitals; Provided, That in the establishment of the Malasakit Centers, highest priority shall

be given to those economically-depressed areas or provinces.

Within three (3) years from the effectivity of this Act, the Philhealth and DOH shall
establish Malasakit Centers down to the Primary and Secondary Care level to help facilitate the
adoption of appropriate health seeking behaviors, assist primary care providers in encouraging
medical consultation at the health centers, monitor patient compliance, and ensure proper patient

referral and availment of benefits.

Private hospitals are hereby encouraged to establish Malasakit Centers. The Philhealth and
DOH may enter into a Memorandum of Agreement with private hospitals for the establishment of
Malasakit Centers which shall cater indigent and poor patients of the private hospital.

SECTION 9. Donations from Non-Governmental Organizations and the Private
Sector. - The DOH may solicit and receive donations from the private sector for medical assistance
to indigent and poor patients. Such donations shall be exempt from income or donor’s tax and all
other taxes, fees and charges imposed by the government; Provided, That donations from the private
sector for a particular hospital shall only be used for benefit of the patients of the particular hospital:
Provided further, That the donations and grants shall only be used for the purpose specified by the

donor.


As such, the donor may send his or her representatives to the Malasakit Center for the
provision of the medical assistance donated by the donor in the particular hospital.

Receipts from donations, whether in cash or in kind, shall be accounted for in the books of
the DOH in accordance with accounting and auditing rules and regulations. The receipts from cash
donations and proceeds from sale of donated commodities shall be deposited with the National
Treasury and recorded as a special account in the General Fund and sha;; be available to the DOH
through a special budget pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 292.
Donations with a term not exceeding one (1) year shall be treated as trust receipts.

The DOH shall submit the quarterly reports of all donations received, whether in cash or in
kind, and expenditures or disbursements thereon with electronic signature to the DBM, through the
Unified Reporting System, and to the Speaker of the House of Representatives, the President of the
Senate of the Philippines, the House Committee on Appropriations, the Senate Committee on
Finance and the Commission on Audit, by posting such reports on the DOH website for a period of
three (3) years. The head of the DOH shall send written notice to the said offices when said reports
have been posted on its website which shall be considered the date of submission.

SECTION 10. Appropriations. - The amount necessary to establish Malasakit Centers
shall be included in the General Appropriation Act. Additionally, there shall be an annual
appropriation for the assistance to! indigent patients under the DOH specifically for medical
assistance to indigent and poor patients as provided for in Section 5 of this Act, and an annual
appropriation for assistance to individuals and families in difficult circumstances under the DSWD
budget for financial assistance to indigent and poor patients as provided for in Section 7 of this Act.

SECTION 11. Implementing Rules and Regulations. — Within ninety (90) days from the
approval of this Act, Philhealth, DOH, DSWD, in coordination with Department of Interior and
Local Government shall jointly issue the implementing rues and regulations of this Act.

SECTION 12. - Separability Clause. - Any portion or provision of this Act that is declared
unconstitutional shall not have the effect of nullifying other portions or provisions hereof as long as

such remaining portions can still subsist and be given effect in their entirely.
SECTION 13. — Repealing Clause — All laws, ordinances, rules, regulations, other
issuances or parts hereof, which are inconsistent with this Act, are hereby repealed or modified

accordingly.

SECTION 14. — Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the official Gazette or in a newspaper of general circulation.

Approved,