6:. ", .. "'.'j ,." 
...;;tji\..l(,,11 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
(~fh;[' (If Hp" ~Ii rrr1:'ir\1 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'14 FEB·5 P3 n 
SENATE 
S. No. 2105 
Introduced by Senator GREGORIO B. HONASAN II 
AN ACT TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS 
MEMORIAL MEDICAL CENTER (VMMC) AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
In reco~nition of the heroism exemplified by our Filipino soldiers during World 
War II, the 80t Congress of the United States of America passed Public Land Law 865 
on 8 July 1948 which provided $9.4 million for the construction and establishment of a 
hospital facility presently known as the Veterans Memorial Medical Center. (VMMC)1 
The VMMC is mandated, among others, to provide the best possible medical 
care and treatment to eligible veterans and their dependents.2 This, however, may not • 
be fully realized as the hospital is primarily dependent on the available funds 
appropriated by the national government. 
Under the General Appropriations Act of 
2014, the hospital's total budget allocation for FY 2014 is Nine hundred seventy-nine 
million, ninety-five thousand pesos (P979, 095, 000.00). 
This amount represents a 
measly 1.19% of the total budget of the Department of National Defense (DND).3 
Under this proposed measure, it is hereby declared the policy of the State to 
strengthen, promote and support the undertaking of the VMMC in order to render 
premium medical services to the veterans and their dependents through a 
comprehensive health care system characterized by excellence, dedication and 
commitment 
In order to achieve this avowed policy, this bill primarily seeks to provide juridical 
personality to the present VMMC to preserve its viability and continued existence. It is 
also provided in the bill that a Board of Trustees composed of five (5) members shall 
govern, direct and control and manage the activities of the VMMC. 
In view of the foregoing, immediate passage of this biWfs earnestly requested. 
1 "Veterans Memorial Medical Center." N.p., n.d. Web. 30 Jan. 2014. 
2 Ibid. 
3 Philippines. Department of National Defense. Republic Act No. 10633, General Appropriations Act. 1st ed. Vol. 
109. Manila, Philippines: Official Gazette, 2013. Print. Ser. 2013. 


.Srmlfl' 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
(~fftrr tlf IIII<' ,~:;'\'\rl'br~ 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
"i4 
FEB -5 P 3.;22 
SENATE 
S. No. 2105 
Introduced by Senator GREGORIO B. HONASAN II 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
AN ACT 
TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS MEMORIAL 
MEDICAL CENTER (VMMC) AND FOR OTHER PURPOSES 
SECTION 1. Short Title. - This act shall be known as "The Veterans Memorial 
Medical Center Charter Act of 2014," 
SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to 
help foster the socioeconomic security and general well-being of the country's veterans 
and retired military personnel. 
In recognition of their patriotic services in the times of war and peace for the cause 
of freedom and democracy, it is hereby declared the policy of the State to strengthen, 
promote and support the undertaking of the medical center in order to render premium 
medical services to the veterans and their dependents through a comprehensive health 
care system characterized by excellence, dedication and commitment. 
SECTION 3. Veterans Memorial Medical Center (VMMC) as a Corporate Entity .• 
-
There is hereby created a body corporate, for the benefit primarily of the Filipino 
veterans, under the name of the Veterans Memorial Medical Center, hereinafter referred 
to as the VMMC. 
SECTION 4. Purposes and Objectives of the Hospital. -
The VMMC shall have 
the following objectives: 
(a) 
Construct, establish, operate and maintain veterans' hospital primarily for 
. 
' 
the veterans' welfare; 


(b) 
Stimulate and/or undertake scientific researches on the biological, 
demographic, social, economic, eugenic, physiological aspects of health 
disorders and abnormalities alid their control; and gather, compile, 
present and publish the findings of such researches for public 
dissemination; 
(c) 
Facilitate and encourage the dissemination and exchange of ideas and 
information on the prevention, treatment and control of diseases; to 
arouse, enhance and develop public interest and awareness on general 
health and physical fitness; 
(d) 
Encourage and/or undertake the training of physicians, nurses, medical 
technologists, health officers and social workers on the practical and 
scientific conduct and implementation and delivery of health services, and 
related activities; 
(e) 
Assist universities, hospitals and research institutions in their studies of 
health problems, to encourage advanced training on matters of, or 
affecting the physical and mentalwell"being of the people; 
(f) 
Encourage the formation of other organizations on the natioral, provincial, 
city, municipal or barangay level and to coordinate their various efforts 
and activities for the purpose of achieving a more effective and pragmatic 
approach on the common problems relative to th~ objectives herein 
enumerated; and 
(g) 
Extend medical outreach treatment to the general public to help prevent, 
relive or alleviate the innumerable afflictions and maladies of the people 
especially the poor and the less fortunate in life without regard to race, 
creed, color or political belief. 
SECTION 5. 
Social Responsibility. - Tlie VMMC is primarily committed to serve 
the Filipino veterans as defined in Republic ACt No. 6948, as amended by Republic Act 
No. 7696 and Republic Act No. 9396. 
SECTION 6. Corporate Powers. - For the attainment of the above purposes and 
objectives, the VMMC, as a corporate body, acting through its Board of Trustees, shall 
have all the powers pertaining to a juridical person, and is therefore authorized: 
(a) 
To have continuous succession under its corporate name, until otherwise 
provided by law; 
(b) 
To prescribe, adopt, amend and/or repeal its bylaws; 


(c) 
To sue and be sued; 
(d) 
To acquire, receive, take and hold by request, devise, gift, purchase or 
lease, either absolutely or in trust for any of its purposes, from foreign and 
domestic sources, any asset, grant or property, real or personal, subject to 
such limitations as are provided in existing laws; to conveyor dispose of 
such assets, grants or properties, movable and immovable; and invest 
. 
' 
. 
and/or reinvest such proceeds and deal with,and expand its assets and 
income in such a manner as will best promote its objectives; 
(e) 
To enter into contracts; 
(f) 
To solicit and receive donations, endowments and funds in the form of 
contributions, whether in cash or in kind, from both the public and private 
sectors; 
(g) 
To open such accounts in banks and other financial institutions, and to 
disburse such funds or invest the same as the Board may direct to 
accomplish or advance the purpose or interest of the VMMC; 
(h) 
To invite foreign health specialists and other.similar experts in the various 
medical fields to train the personnel or trainer or residents of the VMMC; 
(i) 
To send the VMMC personnel to research institutes, medical institutes, or 
universities for advance training or observation and to attend international 
or regional conventions, conferences, congresses and seminars, as the 
Board may deem necessary, to accomplish the purposes and objectives of 
the VMMC; 
0) 
To enter into such agreements and arrangements with other medical or 
other institutions, domestic or foreign, as may be deemed desirable by the 
Board, for the purpose of promoting its purposes and objectives; 
(k) 
To establish branches of the VMMC in other provinces or cities of the 
Philippines as my be deemed necessary for greater service coverage to 
veterans and their dependents that are living in almost all parts of the 
country; and 
(I) 
To exercise such powers and perform such duties as may be necessary to 
carry out the business and purposes for which the VMMC was established 
or which, from time to time, may be declared by the Board bf Trustees to 
be necessary, useful, incidental or auxiliary to accomplish such purposes. 
• 
., 


SECTION 7. Board of Trustees. - The VMMC shall be governed and its activities 
be directed, controlled and managed by a Board of Trustees, hereinafter referred to as 
the Board. It shall be composed of five (p) members who shall be appointed by the 
President of the Philippines. The Board shall be made up of the foliowing: 
(a) Medical Director of the VMMC; 
(b) Two (2) members from the government sector; 
(c) Two (2) 
veteran members who are of good 
moral character, 
of 
unquestionable integrity, of known probity and patriotism. 
The term of office of each member shall for a period of three (3) years. In case of 
vacancy, such vacancy shall be filled in the same manner as provided for the 
predecessor, and such appointee shall hold office for the unexpired term only. 
SECTION 8. Meetings and Quorum. - The Board of Trustees shall convene at least 
once a month. The members shall elect Jrom among themselves who will serve as 
Chairperson of the Board. The Chairperson of the Board my call a special meeting 
whenever necessary; Provided, That the members are notified in writing at least three 
. 
. 
(3) days prior to the said meeting. A majority of all the m~mbers of the Board holding 
office at the time the meeting is called shall constitute a quorum for Board meetings. In 
no case shall any and all members of the Board appoint a representative to act on their 
behalf. 
The decisions of the Board shall be made by a vote of the majority of all its 
members. 
SECTION 9. Medical Director. - The Medical Director shall be appointed by the 
President of the Philippines upon the recommendation of the Board and shall serve for 
a term of six (6) years. The Medical Director shall act as the Chief Executive Officer of 
the VMMC and shall perform the following functions: 
(a) 
Organize the VMMC into a streamlined medical institution with admirable 
facilities and competent staff to ensure quality service; 
(b) 
Appoint members of the professional and administrative staff and other 
employees or personnel of the VMMC through a screening process based 
strictly on academic qualifications, experiences and other selection 
standards; determine the terms and conditions of their employment, and 
remove them for cause in accordance with law and due process; 


(c) 
Determine a position qualifications and compensation plan and adjust 
salaries and benefits for all personnel of the VMMC, subject to the 
Compensation and Position Classification 
System of Governance 
Commission for the GOCCs; and 
(d) 
Carry out necessary managerial and administrative functions that may be 
deemed necessary or as directed by the Board of Trustees in furtherance 
of the objectives of the VMMC set in this Act. 
SECTION 10. Secretary. - There shall be a Secretary of the VMMC to be appointed 
by the Board of Trustees, who shall be the Secretary of the Board and who shall keep 
such records of the hospital as may be designated by the Board. 
SECTION 11. Hospital Executive Committee. -
There shall be an Executive 
Committee consisting of the Medical Director as the presiding officer and the Heads of 
the Administrative, Medical, Surgical, Rehabilitative, Dent;;!l, Psychiatric, Diagnostic and 
other critical medical departments. 
The Committee shall exercise the following 
functions: 
(a) Fix the requirement for admission to the hospital; 
(b) Prescribe the rules and regulations as to the discharge of patients; 
(c) Adopt internal rules of procedures consistent with the provision of the Charter 
in order to promote administrative efficiency in the treatment, rehabilitation 
and discharge of patients of the hospitals; and 
(d) Carry out administrative and managerial task to assist the Medical Director in 
the efficient operations and management of the hospital. 
SECTION 12. Personnel and Medical Staff- The VMMC shall have the autonomy 
to employ such employees and medical personnel, or otherwise enter such 
arrangements with medical specialist and other consultants as its Board of Trustees 
shall determine. The personnel and medical staff of'the present VMMC shall 
automatically be transferred to and absorbed by the VMMC as herein created. The 
incumbent Medical Director shall continue to serve as such for a period of three (3) 
years or until his successor shall have been appointed by the President of the 
Philippines. 
SECTION 13. Assistance from Government Offices. - The VMMC may call upon 
any departments, bureau, office, agency, or instrumentality of the government, including 
• 


GOCCs, for such assistance as it may need in the pursuit of its purposes and 
objectives. All individuals, entities and institutions are hereby enjoined to render full 
assistance and cooperation to VMMC in the accomplishment of its objectives and. 
activities. 
SECTION 14. Property of Medical Center. -
All existing assets of the VMMC 
including, but not limited to, the parcel of land belonging to the government situated in • 
the district, Quezon City and more particularly described in the Bureau of Lands as Lot 
R.P.-3-B-4-A, BSD-10352, all its buildings and other properties shall remain with the 
VMMC as a corporate entity, including those that may hereafter be given, donated, 
acquired, transferred or conveyed to the Medical Center or its branches and 
instrumentalities by any foreign government, as well as those given by trust, 
foundations, corporations, or persons whether citizen or not. The absolute ownership of 
the Medical Center over these landholdings including those covered by original and 
transfer certificates of title in the mime of the VMMC is hereby co~firmed. Where the 
issuance of proper certificates of title is still pending for those landholdings the proper 
government office shall expedite issuance thereof within six (6) months from the date of 
effectivity of this Act; Provided, That all registration requirements necessary for the 
issuance of the said titles have been submitted and complied with. 
SECTION 15. Land Grants and other Real Properties. - The use of properties 
and proceeds of such properties shall be gc,lVer.ned by the following: 
(a) 
The State shall support the VMMC in the sum or lump sum amount, 
through the general appropriations and other financial benefits, and in 
kind, through land grants and donations and use of other real properties. 
To carry out the intent. of these grants, income derived from the 
development of all land grants and real properties shall be used to further 
the ends of the hospital, as may be decided by the Board of Trustees in 
furtherance of the declared hospital objectives under this Act; 
(b) 
Such parcels of land ceded by law, decree or presidential issuance to the 
hospital are hereby declared to be reserved for the purposes intended; 
(c) 
The Board of Trustees shall plan, design and approve and/or cause the • 
implementation of contracts, mechanisms and financial instruments, such 
as joint ventures, long term leases, fully owned subsidiaries and 
securitization to give the hospital the, flexibility to generate revenues and 
other resources from land gra'nts and other properties; Provided, That 


such mechanism and arrangements shall sustain and protect the 
environment in accordance with law, and be exclusive of the medical core 
zone of the hospital; Provided, Finally, That such mechanism and 
arrangements shall not conflict with the medical or health services and 
academic mission of the hospital; and 
(d) 
Any plan to generate revenues and other sources from land grants and 
other real properties entrusted to the hospital shall be consistent with the 
hospital mission and orientation as a vehicle to extend health services to 
veterans and their dependents. 
SECTION 16. Safeguards on Asset Disposition. - The preservation of the value 
of the assets of the hospital shall be of primordial consideration. The exclusive core 
zone of the VMMC as defined in SectiOn 14 shall not be sold, transferred, ceded, 
conveyed, assigned and encumbered. 
SECTION 17. Annual Report. - The VMMC shall render to the Pres.ident of the 
Philippines an annual report of its activities and recommendations. 
SECTION 18. Effect of Dissolution;- If, for any reason, the VMMC is dissolved, its 
' 
property remaining at the time of such dissolution shall revert to the Republic of the 
Philippines for disposition in accordance with law. 
SECTION 19. Implementing Rules. - The implementing rules and regulations shall 
be formulated within ninety (90) days from the approval of this Act. 
SECTION 20. 
Separability Clause. -
If any provision of this Act is declared 
unconstitutional, all the other provisions not affected shall remain in force and effect. 
SECTION 21. Repealing Clause- All laws, decrees, "executive orders, rules and 
regulations or other issuances or parts thereof contrary to or inconsistent with the 
provisions of this Act are hereby repealed, amended or modified accordingly. 
SECTION 22. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
its complete publication in the Official Gazelle or in at least two (2) newspapers of 
general circulation. 
Approved,