Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
EXPLANATORY NOTE 
The State recognizes the right of every Filipino to quality and affordable 
healthcare. Part of the healthcare quality that is guaranteed to every Filipino is one 
that is modern and state of the art. In ensuring that the medical professionals and 
equipment are up to date with technological advancements, the government has been 
procuring and training professionals with new and modern ways of treating illnesses 
and diseases. 
This measure seeks to modernize healthcare facilities throughout the country 
by strengthening the Bureau of Health Facilities and Services (BHFS). It aims to 
empower the BHFS to provide the Bureau the ability to establish, regulate, and 
monitor existing guidelines that improve the healthcare system in the country. This 
empowerment also comes with the ability to be able to monitor and inspect facilities 
for their improvement. 
This measure was first filed in the 17th and 18th Congress, with the 18th 
Congress version being transmitted to the Senate for their appropriate action. Due to 
the lack of time to pass the bill, it is being refiled again in the 19th Congress. 
In view of the foregoing, the passage of this bill is immediately sought. 
 HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am
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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.  _________ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
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 House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Health Facilities and 
Services Regulation Act". 
SECTION 2. Declaration of Policy. — Article II, Section 15 of the Constitution states 
that “The State shall protect and promote the right to health of the people and instill 
health consciousness among them”. Furthermore, Article XIII, Section 11 provides 
that the State shall endeavor to make essential goods, health and other services 
available to all Filipinos at affordable cost. 
SECTION 3. Definition of Terms. — As used in this Act: 
(a)
Health facilities refer to facilities or institutions, whether stationary or mobile,
land-based or otherwise, and other health-related establishments which provide for
any of the following services: diagnostic, therapeutic, rehabilitative, and other health
care services except medical radiation facilities and hospital-based or stand-alone
pharmacies;
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(b)           Health services refer to services that may be preventive, diagnostic, therapeutic, 
rehabilitative, palliative, and other similar ones that are provided by non-health-
related establishments or entities, including third party ambulance services and other 
emerging services; 
(c)           License refers to a formal authorization issued by the Department of Health 
(DOH) to an individual, partnership, corporation, cooperative or association to 
operate health facilities and provide health services. It is a prerequisite to the 
accreditation of a hospital and recognition of competence to provide services by any 
accrediting body that is recognized by the DOH;  
(d)           Licensee refers to the person, partnership, corporation, cooperative or 
association granted a license to operate and maintain a health facility and provide 
health services according to an approved standard set by the Bureau of Health 
Facilities and Services (BHFS). 
(e)           Permit to Construct (PTC) refers to a permit issued by the DOH through the 
BHFS to an applicant who shall establish and operate a hospital, upon compliance 
with required documents prior to the actual construction of the said facility; 
A PTC is also required for hospitals and services that will entail a transfer of hospital 
site, substantial alteration, expansion, or physical renovation and increase in the 
number of beds or for additional services (add-ons) beyond their service capability. 
It shall likewise be a documentary requirement of the application for a License to 
Operate (LTO) a hospital; and 
(f)           Registration refers to the act or process of entering information about a health 
facility into the records of the public health system. 
SECTION 4. Bureau of Health Facilities and Services (BHFS). — The Health Facilities 
and Services Regulatory Bureau (HFSRB) is hereby renamed as the BHFS. The BHFS 
shall be under the Office of the Secretary of Health and shall have the following 
functions, powers and duties: 
(a) To promulgate, establish and prescribe rules, regulations, standards, 
requirements and specifications in the construction and operation of health 
facilities and impose penalties for violations thereof;  
(b) To inspect all health facilities and services for compliance with the prescribed 
rules and regulations prior to the issuance of regulatory authorizations in 
accordance with the provisions of this Act and to give feedback to directors or 
administrators of health facilities and services for the correction of deficiencies 
found during the inspections; 


(c) To monitor and conduct surveillance of health facilities and services to ensure 
their continued compliance with the rules and regulations in accordance with 
this Act; 
(d) To study and adopt a system of classifying health facilities and services in the 
Philippines; 
(e) To review and approve construction designs and plans for all health facilities, 
including renovation or expansion of the same in accordance with the 
provisions of this Act; 
(f) To determine, levy, assess and collect the appropriate permit fee, registration 
fee, license fee and surcharges pertinent to the operation of facilities and 
provision of health services except in cases where charges or rates are 
established by international bodies or associations of which the Philippines is 
a participating member or by bodies recognized by the Philippine government 
as the proper arbiter of such charges or rates; 
(g) To coordinate and call the assistance of any department, office, agency or 
instrumentality of the national or local government and other entities 
concerned with any aspect involving health facilities for the effective 
implementation of this Act; 
(h) To maintain a registry of health facilities and services and other related 
facilities, with licenses indicating the name of the facility, address or location 
classification, name of the director or administrator, ownership, number of 
authorized beds and such or other pertinent data as may be necessary; 
(i) To promulgate and implement the rules and regulations governing the 
registration, licensure and operations of health facilities and services and to 
periodically review and amend the same, subject to the approval of the 
Secretary of Health and in consultation with the sectors concerned: Provided, 
That such rules and regulations shall be in accordance with the provisions of 
this Act; 
(j) To grant regulatory authorizations such as permits and licenses for the 
construction, operation and maintenance of health facilities and services, and 
to suspend or revoke the same in accordance with the provisions of this Act; 
(k) To hire and train competent individuals and provide qualifications of 
personnel to be designated as regulatory officers; 
(l) To submit yearly reports to the Secretary of Health, and to the Chairpersons of 
the Committee on Health of the House of Representatives and the Committee 
on Health and Demography of the Senate of the Philippines; and 
(m) 
To perform other duties as may be necessary to carry out the functions 
prescribed under this Act.  
SECTION 5. Quasi-Judicial Powers. - To carry out its tasks more effectively, the 
BHFS shall be vested with the following quasi-judicial powers: 


(a) To investigate, hear and decide administrative cases initiated by the BHFS or 
filed by any person against a health facility or health service establishment 
violating any provision of this Act and its implementing rules and regulations 
(IRR), and to impose appropriate administrative sanctions or penalties 
provided in this Act; 
(b) To promulgate rules governing the conduct of administrative investigations 
and hearings: Provided, That in such proceedings, the BHFS shall not be bound 
by the technical power to ask the assistance of relevant government officials 
and qualified private individuals to act as a compulsory mediator on cases 
referred to it.  
SECTION 7. Organization. —The Director of BHFS shall organize its operations in 
such divisions and units as will ensure efficiency and effectiveness, subject to the 
approval of the Secretary of Health and the Secretary or Department of Budget and 
Management. 
  
SECTION 8. Minimum Qualifications for Appointment as Chief Executive Officer, 
Chief Operating Officer, or Administrative Officer. — The Chief Executive Officer, 
Chief Operating Officer, or Administrative Officer of a hospital or health facility who 
shall be responsible for the overall management and administration of the hospital 
or health facility; formulation of policies, plans, programs and strategies to ensure 
implementation of health standards; and the day-to-day supervision of the functional 
units shall possess the following minimum qualifications: (a) formal baccalaureate 
degree, preferably with a master’s degree in hospital administration or related 
course; and (b) at least five (5) years experience in a supervisory or managerial 
position.  
SECTION 9. Classification of Hospitals and Services. - The existing classification of 
hospitals and services including the system, rules and regulations governing their 
classification shall be subject to the automatic review by the BHFS in consultation 
with relevant stakeholders, within three (3) years from the effectivity of this Act and 
thereafter it may deem necessary. It should take into consideration the findings and 
recommendations made by Congress, if any, and the actual situation in dealing with 
the existing classification of hospitals and services for the purpose of protecting and 
promoting the health of the public by ensuring a minimum quality of service 
rendered by hospitals and other regulated health facilities and to assure the safety of 
patients and personnel.  
Classification of health facilities and services shall only be made upon the approval 
of the Secretary of Health after mandatory consultation with representatives from 
government and private hospital associations and patient organizations.  


SECTION 10. Construction Design. - The BHFS shall review and approve the 
construction design and plans of health facilities to be constructed or which shall 
undergo renovation or expansion. 
An application for the construction design of a health facility shall be submitted to 
the BHFS in a form prescribed by the latter and accompanied by a plan of the facility 
proposed to be constructed. The approved construction design and plan issued by 
the BHFS shall be a prerequisite for the issuance of a building permit by the official 
of the municipality or city where the facility is proposed to be constructed.  
SECTION 11. Application, Inspection, and Issuance of License to Operate. — All 
health facilities shall be duly licensed by the BHFS in accordance with Republic Act 
No. 11032 or the “Ease of Doing Business and Efficient Government Service Delivery 
Act of 2018” before such facilities are allowed to operate or be opened to the public. 
An application of a health facility for the issuance of a license to operate, including 
its medical ancillary services, shall be filed with the BHFS or its regional office using 
the prescribed forms.  
The license to operate shall be issued upon due compliance of the applicant with the 
rules and regulations prescribed by the BHFS pursuant to the provisions of this Act: 
Provided, That the BHFS has conducted a comprehensive on-site inspection and has 
certified that the applicant has satisfactorily complied with the requisites prescribed 
in this Act and its IRR. Provided, further, That an applicant shall get the approval of 
the Food and Drug Administration (FDA) for its pharmacy and radiology facilities 
and the Philippine Nuclear Research Institute (PNRI) for medical radiation facility.  
The FDA, PNRI, Department of Environment and Natural Resources (DENR) and 
other agencies involved in the regulation of health facilities shall employ a one-stop-
shop strategy in the processing of applications through systems that are accessible to 
the public. 
Upon issuance of the license to operate, a health facility shall be deemed included in 
the BHFS’ registry, and in the National Health Facility Registry upon the approval of 
the DOH.  
All licensed health facilities shall be automatically allowed to participate in the 
National Health Insurance Program.  
SECTION 12. Monitoring and Surveillance of Health Facilities. — The BHFS shall 
monitor health facilities to ensure continued compliance with the rules and 
regulations in the licensure and operation of health facilities and shall perform 
surveillance activities whenever necessary. Health facilities shall ensure that key 


staff, records, premises and facilities are made available to the BHFS’ authorized 
regulatory officers during the monitoring activity.  
SECTION 13. Validity and Renewal of License. — The initial license to operate issued 
to a health facility shall be valid for a period of three (3) years from its date of 
issuance, and shall be renewed regularly, subject to the rules and regulations to be 
issued by the BHFS. 
SECTION 14. Suspension and Revocation of License. — The BHFS, after conducting 
an administrative hearing, may suspend or revoke the license to operate and 
maintain a health facility of any person, partnership, corporation, cooperative or 
association upon due process for any of the following grounds: 
(a) Violation by the license of any provision of this Act, its rules and regulations 
or any other existing law; and 
(b) Failure to make necessary corrections or adjustments required by the BHFS and 
the improvement or maintenance of facilities and services.  
SECTION 15. Appeal. — The orders, rulings or decisions of the BHFS shall be 
appealable to the Secretary of Health. 
SECTION 16. Separate Licenses Required. — Separate licenses shall be required for 
health facilities and services or branches thereof maintained in separate premises 
even though they are operated under the same management: Provided, however, That 
separate licenses shall not be required for separate buildings in the same compound: 
Provided, further, That the approval of designs and plans for construction or 
renovation of buildings within the same compound shall also be secured from the 
BHFS to determine compliance with standards and requirements herein authorized.  
SECTION 17. Nontrasferability of License. — A license to operate shall not be 
transferable. The BHFS shall be notified of any change in ownership and/or change 
of name of the health facility. Transfer of the location or site of the facility shall 
require an application for a new license. 
SECTION 18. Penalties. — Any person, partnership, association, cooperative or 
corporation that establishes, operates, conducts, manages or maintains a health 
facility and renders health and ancillary services within the meaning of this Act 
without first obtaining a license, or violates any provision of this act or its IRR shall 
be liable to a fine of not less than Fifty thousand pesos (P50,000.00), but not to exceed 
One hundred thousand pesos (P100,000.00) for the first offense, not less than One 


hundred thousand pesos (P100,000.00), but not to exceed Five hundred thousand 
pesos (P500,000.00) for the second offense and not less than Five hundred thousand 
pesos (P500,000), but not to exceed One million pesos (P1,000,000) for the third and 
subsequent offenses. After the third offense, the license of the facility shall be 
revoked. Each day that the health facility and services operates after the first violation 
shall be considered a subsequent offense.  
In addition to the penalties specified in the preceding paragraph, the BHFS may 
summarily order the closure of any health facility or other related facility found 
operating without a license or revoke the license to operate of any health facility after 
due process. Facilities may only reapply for a new license to operate one (1) year after 
revocation of its license.  
SECTION 19. Appropriations. — The initial amount necessary to implement the 
provisions of this Act shall be charged against the current year's appropriation of the 
DOH. Thereafter, such sum as may be necessary for the continued implementation 
of this Act shall be included in the annual General Appropriations Act.  
SECTION 20. Mandatory Review. — Congress shall undertake a mandatory review 
of this Act at least once every five (5) years and as often as it may deem necessary 
with the primary objective of overseeing the implementation of this Act and 
reviewing the accomplishments and utilization of income of the BHFS. 
SECTION 21. Implementing Rules and Regulations. — The Secretary of Health, upon 
the recommendation of the BHFS, FDA, PNRI, and other concerned agencies and 
after consultation with recognized health facilities, associations, patients’ 
organizations and other civil society organizations, shall issue the rules and 
regulations implementing the provisions of this Act within ninety (90) days from its 
effectivity. 
SECTION 22. Separability Clause. — If any part or provision of this act shall be held 
unconstitutional or invalid, other provisions hereof which are not affected shall 
continue to be in full force and effect. 
SECTION 23. Repealing Clause. — Republic Act No. 4226, otherwise known as the 
“Hospital Licensure Act”, is hereby repealed. Presidential decrees, executive orders, 
rules and regulations and other assurances for parts thereof which are inconsistent 


with the provisions of this Act are hereby repealed, amended or modified 
accordingly.  
SECTION 24. Effectivity. — This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved.