NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S. B. No. 2477
■Sij, ; (JDffcr of ihf & r: i'-'
23 NOV-8 P6:44
RECEIV'D 8'',
Introduced by Senator Joseph Victor G. Ejercito
AN ACT
MODERNIZING THE REGULATION OF HEALTH FACILITIES AND SERVICES, 
AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE 
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE "HOSPITAL 
LICENSURE ACT"
EXPLANATORY NOTE
The COVID 19 Pandemic had tested the efficiency and reliability of our health 
facilities in the country. The pandemic served as an eye-opener for all of us that some 
of our health facilities need no longer pass the current regulatory mandate of the 
Department of Health (DOH) through the Bureau of Health Facilities and Services 
(BHFS). Likewise, the rapid development and innovations in the health sector both in 
the ASEAN region and in the world provided greater challenge of our health facilities 
to catch up with these changes. These resulted to a greater demand for our health 
sector, most particularly in regulating our health facilities to be more competitive with 
our neighboring countries, at the very least.
This bill proposes renaming the Facilities and Services Regulatory Bureau 
(HFSRB) into the Bureau of Health Facilities and Services (BHFS) of the Department 
of Health (DOH) and expanding its roles and responsibilities. Moreover, the bill offers 
innovations in the accreditation of health facilities that intends to lessen or at most 
irradicate possible loopholes in the process.


It is hoped that with the passage of this bill, a better and improved health 
facilities will flourish as a result. Better facilities will result to better but regulated 
health services for our people.
T3
JOSEPH VICTOR G. EJERCITO


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
)
SENATE
S.B. No. 2477
' ■ i' 7
of the
23 NOV-8 P6 ’A5
RECEIVED Bv
Introduced by Senator Joseph Victor G. Ejercito
AN ACT
MODERNIZING THE REGULATION OF HEALTH FACILITIES AND SERVICES, 
AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE 
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE "HOSPITAL 
LICENSURE ACT"
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 as the "Health Facilities
2 
Regulation Act".
3 
Sec. 2. Definition of Terms. - For purposes of this Act, the following terms are
4 
hereby defined as follows:
5 
a) Health Facilities refer to institutions whether stationary or mobile, land
6 
based OR otherwise and other health related establishments which provide
7 
diagnostic, therapeutic, rehabiiitative, and other health care services except
8 
hospital pharmacies;
9 
b) License refers to a formal authorization issued by the Department of Health
10 
(DOH) to an individual, partnership, corporation or association to operate a
11 
health facilities or services. It is a prerequisite for accreditation of a hospital
12 
and
13 
other health facilities by any accrediting body that is recognized by the DOH;
14 
c) Licensee refers to the person, partnership, corporation, cooperative or
15 
association granted a license to operate and maintain a health facility or
16 
services according to an approved standard set by the Bureau;


1 
d) Department of Health-Permit to Construct (DOH-PTQ refers to a permit
2 
issued by DOH through HFSRB to an applicant who will establish and
3 
operate a hospital or other health facility, upon compliance with required
4 
documents set forth in this Order prior to the actual construction of the said
5 
facility. A DOH-PTC is also required for hospitals and other health facilities
6 
with substantial alteration, expansion, renovation, increase in the number
7 
of beds or for additional services (add-ons) beyond their service capability.
8 
It is a prerequisite for License to Operate; and
9 
e) Registration refers to the act or process of entering information about a
10 
health facility into the records of the public health system
11 
Sec. 3. Bureau of Health Facilities and Services (BHFS)- The Health Facilities
12 
and Services Regulatory Bureau (HFSRB) is hereby renamed as the Bureau of Health
13 
Facilities and Services (BHFS), herein referred to as the Bureau, which shall be created
14 
in the DOH. The Bureau shall be under the Office of the Secretary and shall have the
15 
following functions, powers and duties:
16 
a) To promulgate, establish and prescribe rules, regulations, standards,
17 
requirements and specifications in the construction and operation of health
18 
facilities and impose penalties for violations of such;
19 
b) To inspect and monitor all health facilities and other related facilities to
20 
ensure their continued compliance with the rules and regulations in
21 
accordance with this Act and to make recommendations to directors or
22 
administrators of health facilities for the correction of deficiencies found
23 
during the inspections;
24 
c) To study and adopt a system of classifying health facilities and other related
25 
facilities in the Philippines;
26 
d) To review and approve construction designs and plans for all health facilities
27 
including renovation or expansion of the same in accordance with the
28 
provisions of this Act;
29 
e) To determine, levy, assess and collect the appropriate permit fee,
30 
registration fee, license fee and surcharges pertinent to the operation of
31 
facilities and services except in cases where charges or rates are established
32 
by international bodies or associations of which the Philippines is a


1 
participating member or by bodies recognized by the Philippine government
2 
as the proper arbiter of such charges or rates;
3 
f) To coordinate and call the assistance of any department, office, agency or
4 
instrumentality of the national or local government and other entities
5 
concerned with any aspect involving health facilities for the effective
6 
implementation of this Act;
7 
g) To maintain a register of health facilities and other related facilities with
8 
licenses indicating the name of the facility, address or location,
9 
classification, name of the director or administrator, ownership, number of
10 
authorized beds and such other pertinent data as may be necessary;
11 
h) To promulgate and implement the rules and regulations governing the
12 
registration, licensure and operations of health facilities and related facilities
13 
and to periodically review and amend the same, subject to the approval of
14 
the Secretary and in consultation with the sectors concerned: Provided, That
15 
such rules and regulations shall be in accordance with the provisions of this
16 
Act;
17 
i) To grant a certificate of license for the operation and maintenance of health
18 
facilities and services, and to suspend or revoke the same in accordance
19 
with the provisions of this Act;
20 
j) To hire and train competent individuals and provide qualifications of
21 
personnel to be designated as regulatory officers;
22 
k) To submit yearly reports to the Secretary of Health, and the Chairpersons
23 
of the Committees on Health of both Houses of Congress; and
24 
I) To Perform such other functions necessary to carry out the duties prescribed
25 
under this Act.
26 
Sec. 4. Quasi-Judicia! Powers. - To carry out its tasks more effectively, the
27 
Bureau shall be vested with the following quasi-judicial powers:
28 
a) To investigate, hear and decide administrative cases initiated by the Bureau
29 
or filed by any person against a health facility or health service
30 
establishment violating any provision of this Act and its implementing rules
31 
and regulations and to impose appropriate administrative sanctions or
32 
penaities provided in this Act;


1 
b) To promulgate rules governing the conduct of administrative hearings:
2 
Provided, That in such proceedings, the Bureau shall not be bound by the
3 
technical rules of evidence of the Rules of Court: Provided, further, That the
4 
latter may be applied in a suppletory manner;
5 
c) To administer oaths and affirmations, and to issue subpoena duces tecum
6 
and ad testificandum, requiring the production of such books, contracts,
7 
correspondence, records, statement of accounts and other documents and
8 
the attendance and testimony of parties and witnesses, as may be material
9 
to the investigation being conducted by the Bureau;
10 
d) To exercise contempt powers and impose appropriate penalties;
11 
e) To cause the prosecution of all cases involving violations of this Act and its
12 
implementing rules and regulations, and
13 
f) To summarily order the closure of health facilities and other related facilities
14 
operating without a license; and
15 
g) To preventively suspend health facilities found during inspection' or
16 
monitoring to have committed gross violations of the standards or rules and
17 
regulations such as non-compliance to the approved construction design;
18 
any fraudulent, unscrupulous activities, false claims or misrepresentations;
19 
operating with unlicensed 
or unqualified health personnel; 
and 
the
20 
commission or omission of any act which may result to serious injury,
21 
permanent disability or loss of life of a patient or staff, or would compromise
22 
public safety
23 
Sec. 5. Mandatory Conciiiation-Mediation. - The Bureau shall exert all efforts
24 
towards the amicable settlement of an administrative case within its jurisdiction on or
25 
before the first hearing. Towards this end, it shall have the power to ask the assistance
26 
of relevant government officials and qualified private individuals to act as a compulsory
27 
mediator on cases referred to it.
28 
Sec. 6. Registration and License. - The Bureau shall facilitate the delivery of
29 
high-quality and cost-effective healthcare by promoting competition among health
30 
facilities. Towards this end, all hospitals and other health facilities, government or
31 
private, shall be registered and duly licensed by the Bureau before such facilities are


1 
allowed to operate or be opened to the public. Both public and private health facilities
2 
shall be required to apply for the permit to construct and license to operate.
3 
Sec. 7. Organization. - The Director of the Bureau shall, subject to the approval
4 
of the Secretary of Health, organize its personnel in such divisions and units as will
5 
ensure efficiency and effectiveness:
6 
The Bureau shall establish, operate and maintain a regional office in each of
7 
the administrative regions of the country to enforce regulatory policies and standards
8 
for the licensing, accreditation, and monitoring of health facilities to ensure quality
9 
health care.
10 
In order to allow the Bureau to carry out its functions and responsibilities, the
11 
Secretary of Health shall hire additional personnel, as deemed necessary. The head of
12 
the Bureau shall make the necessary recommendations to the Secretary of Health
13 
regarding the number and competency of additional personnel to be hired.
14 
Sec. 8. Minimum Quaiifications for Appointment as Chief Executive Officer,
15 
Chief Operating Officer, or Administrative Officer. -The Chief Executive Officer, Chief
16 
Operating Officer, or Administrative Officer of a hospital or health facility who shall be
17 
responsible for the overall management and administration of the hospital;
18 
formulation of policies, plans, programs and strategies to ensure implementation of
19 
health standards; and the day-to-day supervision of the functional units shall
20 
possesses any of the following minimum qualifications: a) formal baccalaureate
21 
degree, preferably with a master's degree in hospital administration or related course;
22 
or b) at least five (5) years of experience in a supervisory or managerial position
23 
Sec. 9. Ciassiffcation of Hospitais and Other Heaith Faciiities. - The existing
24 
classification of hospitals and other health facilities including the system, rules and
25 
regulations governing their classification shall be subject to automatic review by the
26 
Bureau, in consultation with relevant stakeholders, within three (3) years from the
27 
effectivity of this Act and thereafter as it may deem necessary. It shall take into
28 
consideration the findings and recommendations made by Congress, if any, and the
29 
actual situation in dealing with the existing classification of hospitals and other health
30 
facilities for the purpose of protecting and promoting the health of the public by


1 
ensuring a minimum quality of service rendered by hospitals and other regulated
2 
health facilities and to assure the safety of patients and personnel.
3 
Classification of health facilities and other related facilities shall only be made
4 
upon the approval of the Secretary of Health after mandatory consultation with
5 
representatives from government and private hospital associations and patient
6 
organizations.
7 
Sec. 10. Construction Design. - The Bureau shall review and approve the
8 
construction design and plans of health facilities or related facilities to be constructed
9 
or which shall undergo renovation or expansion.
10 
An application for the construction design of a health facility or other related
11 
facility shall be submitted to the Bureau in a form prescribed by the latter and
12 
accompanied by a plan of the facility proposed to be constructed. The approved
13 
construction design and plan issued by the Bureau shall be a prerequisite for the
14 
issuance of a building permit by the official of the municipality or city where the facility
15 
is proposed to be constructed.
16 
All level III government hospitals to be constructed shall include in its design
17 
the provision of geriatric ward.
18 
Sec. 11. Appiication, Inspection, and Issuance of License to Operate (LTO). -
19 
All health facilities shall be duly licensed by the Bureau, in accordance with Republic
20 
Act No. 11032 or the "Ease of Doing Business Act", before such facilities are allowed
21 
to operate or be opened to the public.
22 
An application of a health facility for the issuance of a License to Operate
23 
including its medical ancillary services, shall be filed with the Bureau or its Regional
24 
office using the prescribed forms.
25 
The LTO shall be issued upon due compliance of the applicant with the rules
26 
and regulations prescribed by the Bureau pursuant to the provisions of this Act.
27 
Provided, That the Bureau has conducted a comprehensive on-site inspection and has
28 
certified that the applicant has satisfactorily complied with the requisites prescribed in
29 
this Act and its implementing rules and regulations (IRR). Provided further, That an
30 
applicant shall get the approval of the Food and Drug Administration


1 
(FDA) for its pharmacy or Philippine Nuclear Research Institute (PNRI) for medicai
2 
radiation facility.
3 
The FDA, PNRI, Department of Environment and Naturai Resources (DENR)
4 
and other agencies invoived in the regulation of heaith fadiities shali empioy a One-
5 
Stop Shop strategy in the processing of appiications through systems that are
6 
accessibie to the public.
7 
Upon issuance of the LTO, a health facility shall be included in the Bureau's
8 
registry and in the Nationai Heaith Facility Registry upon the approvai of the DOH.
9 
Ail licensed heaith fadiities shali be automaticaiiy aliowed to participate in the
10 
National Health Insurance Program.
11 
Sec. 12. Validity and Renewal of License. - The initial license to operate and
12 
maintain a health facility or other related facility shali be valid for a period of three (3)
13 
years from its date of issuance, and shali be renewed reguiariy, subject to the rules
14 
and regulations to be issued by the Bureau.
15 
Sec. 13. Suspension and Revocation of License. - The Bureau, after conducting
16 
an administrative hearing, with due notice to the licensee, may suspend or revoke the
17 
license to operate and maintain a heaith facility or other reiated fadiity of any person,
18 
partnership, corporation or association for any of the foliowing grounds:
19 
a) Violation by the iicensee of any provision of this Act or any other existing
20 
iaw;
21 
b) Vioiation of rules and regulations prescribed in the implementation of this
22 
Act; and
23 
c) Faiiure to make necessary corrections or adjustments required by the
24 
Bureau in the improvement or maintenance of faciiities and services.
25 
Sec. 14. Appeal. - The orders, rulings or decisions of the Bureau shali be
26 
appeaiable to the Secretary of Health.
27 
Sec. 15. Separate Licenses Required. - Separate licenses shail be required for
28 
heaith faciiities or other reiated faciiities or branches thereof maintained in separate
29 
premises even though they are operated under the same management: Provided,
30 
however. That separate iicenses shali not be required for separate buiidings in the
31 
same compound: Provided, further. That the approval of the designs and pians for


1 
construction or renovation of buildings within the same compound shali also be
2 
secured from the Bureau to determine compiiance with standards and requirements
3 
herein authorized.
4 
Sec. 16. Non-Transferability of License. - A license for the operation of a health
5 
facility or other reiated faciiity shali not be transferabie. The Bureau shali be notified
6 
of any change in ownership, change of name of the heaith faciiity or other related
7 
facility. Transfer of iocation of the facility shali require an application for a new license.
8 
SEC. 17. Penalties. - Any person, partnership, association, or corporation who
9 
establishes, operates, conducts, manages or maintains a health facility or other related
10 
facility within the meaning of this Act without first obtaining a license, or violates any
11 
provision of this Act or its Implementing Ruies and Reguiations shali be liable to a fine
12 
of not less than Fifty Thousand Pesos (P50,000.00) but not to exceed One Hundred
13 
Thousand Pesos (P100,000.00) for the first offense, not iess than One Hundred
14 
Thousand Pesos (P100,000.00) but not to exceed Five Hundred Thousand Pesos
15 
(P500,000.00) for the second offense, and not less than Five Hundred Thousand Pesos
16 
(P500,000.00) but not to exceed One Miilion Pesos (P1,000,000.00) for the third and
17 
subsequent offenses. After the third offense, the license of the hospital shall be
18 
revoked. Each day that the health facility or other related facility operates after the
19 
first vioiation shali be considered a subsequent offense.
20 
In addition to the penaities specified in the preceding paragraph, the Bureau
21 
may summarily order the closure of any health facility or other reiated facility found
22 
operating without a iicense or revoke the iicense to operate of any heaith facility or
23 
other related facility after due process. Facilities may oniy re-apply for a new LTO one
24 
(1) year after revocation of its license.
25 
SEC. 18. Income Retention. - To ensure that the Bureau shail have full authority
26 
to utilize its income and enhance its capacity to expand and to improve the quality of
27 
its services, it is hereby authorized to retain and utilize one hundred percent (100%)
28 
of its income generated from various fees and surcharges without remitting the same
29 
to the Bureau of Treasury.
30 
In no case shali the retained income be used for the payment of salaries and
31 
other personnei benefits. The retained income shali be deposited in an authorized
8


1 
government depositary bank recommended by the Department of Health, the
2 
Department of Budget Management, and the Department of Finance.
3 
SEC. 19. Appropriations. - The current appropriations of the DOH under the
4 
General Appropriations Act (GAA) shall be used to carry out the initial implementation
5 
of this Act. Thereafter, such sums as maybe necessary for the continued
6 
implementation, of this Act shall be included in the succeeding GAA.
7 
SEC. 20. Mandatory Review. - Congress shall undertake a mandatory review of
8 
this Act at least once every five (5) years and as often as it may deem necessary, with
9 
the primary objective of overseeing the implementation of this Act and reviewing the
10 
accomplishments and the utilization of income of the Bureau.
11 
SEC. 21. Implementing Rules and Regulations.- The Secretary of Health, upon
12 
the recommendation of the Bureau, FDA, PNRI, and other concerned agencies and
13 
after consultation with recognized health facilities, associations, patients' organizations
14 
and other civil society organizations, shall issue the rules and regulations implementing
15 
the provisions of this Act within ninety (90) days from its effectivity.
16 
SEC. 22. Separability Clause. - If any part or provision of this Act shall be held
17 
unconstitutional or invalid, other provisions hereof which are not affected shall
18 
continue to be in full force and effect, continue to be in full force and effect.
19 
SEC. 23. Repealing Clause. - Republic Act No. 4226, otherwise known as
20 
"Hospital Licensure Act," is hereby repealed. Presidential decrees, executive or rules
21 
and regulations and other issuances or parts thereof which are inconsistent with the
22 
provisions of this Act are hereby repealed, amended or modified accordingly.
23 
SEC. 24. Effectivity. - This Act shall take effect fifteen (15) days after publication
24 
in the Official Gazette or in any newspaper of general circulation.
Approved,