Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bi No, 122

Introduced by: REP. JULIET MARIE DE LEON FERRER

EXPLANATORY NOTE

The attached bill seeks to establish the Negros Occidental Heart, Lung and
Kidney Center.

Section 15, Article I! of the 1987 Constitution deciares that “the State shall
protect and promote the right to health of the people and instill health consciousness
among them.” Further, Section 11, Article XIII also provides that “the State shall
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. There shall be priority for the needs of the
underprivileged, sick, elderly, disabled, women and children.”

At present, there is an increasing number of residents in the province of
Negros Occidental diagnosed of certain Heart, Lung and Kidney illnesses. The
current medical facilities in the province of Negros Occidental do not provide for
specialized treatment of these illnesses, the nearest hospital facilities that can treat
these illnesses are in Cebu City or lloilo City. It is thus imperative that specialized
medical services should be provided for those with heart, Lung, Kidney and other
allied diseases in the province of Negros Occidental.

The establishment and maintenance of Negros Occidental Heart, Lung and
Kidney Center will give true meaning to the constitutional policy of providing efficient
and effective health care system that is responsive to the health needs and problems
of the people.

In view of the foregoing, the approval of this bill is earnestly requested

JULIET MAI FERRER


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

House BILL No. 122_

Introduced by: REP. JULIET MARIE DE LEON FERRER

AN ACT
ESTABLISHING THE NEGROS OCCIDENTAL HEART, LUNG AND KIDNEY
CENTER AND APPROPRIATING FUNDS THEREOF

Be it enacted by the Senate and House of Representatives of the Philippines in Congress enabled:

SECTION 1. Short Title. - This Act shall be known as the “Heart, Lung and Kidney Center of the
Philippines Act."

‘SEC. 2. Establishment of the Heart, Lung and Kidney Center of the Philippines. - There is hereby
established a Heart, Lung and Kidney Center of the Philippines, hereinafter referred to as the Heart,
Lung and Kidney Center, a government corporate facility that will offer comprehensive care of patients
with Heart, Lung and Kidney disorders including kidney transplant services, a strong teaching
program and research capability to serve the Filipino people. The Heart, Lung and Kidney Center
shall be located in Bacolod City, Negros Occidental. The Heart, Lung and Kidney Center shall have
the attribute of perpetual succession and shall be vested with the powers of a corporation and shall
continue to exist until dissolved for a lawful cause and/or by joint resolution of Congress.

SEC. 3. Purposes and Objectives. ~ The Heart, Lung and Kidney Center shall have the following
purposes and objectives:

a. Establish and operate a Heart, Lung and Kidney rehabilitation, treatment or
transplant center for the public welfare;

b. Offer comprehensive care for patients with Heart, Lung and Kidney diseases;

©. Conduct training and research on the prevention and treatment of blood
Heart, Lung and Kidney diseases and those related to Heart, Lung and
Kidney regeneration and transplant services including sponsorship and
conduct of relevant congresses, conventions, seminars and conferences;

d. Establish a state-of-the-art Heart, Lung and Kidney diseases laboratory
including a molecular laboratory.

e. Establish a Heart, Lung and Kidney Stem Cell transplant program and donor
registry;


3

Recruit retain and case for voluntary Heart, Lung and Kidney donors;
Collect Heart, Lung and Kidney organs from qualified voluntary donors;
Process whole Heart, Lung and Kidney into Heart, Lung and Kidney
‘components;

Collect Heart, Lung and Kidney components;

Store, issue, transport and distribute whole Heart, Lung and Kidney to end-
user hospitals and non-hospital health facilities;

Ensure that safe supply of Heart, Lung and Kidney and Heart, Lung and
Kidney products to all hospitals and other health facilities are adequate in
terms of distribution and delivery;

Implement and monitor quality assurance to selected regional Heart, Lung
and Kidney centers;

. Test Heart, Lung and Kidney infections; and

Provide special and confirmatory tests and perform Heart, Lung and Kidney
examinations.

‘SEC. 4. Powers and Functions. - The Heart, Lung and Kidney Center shall have the following powers
and functions:

a
b.
©.

Adopt a code of by-laws to implement this Chapter;

Adopt and use a corporate seal which shall be a matter of judicial notice;
Determine its organizational structure and the number and salaries of its
officers and employees in accordance with the provision of Republic Act No.
10149, otherwise known as the Government-Owned and Controlled-
Corporation (GOCC) Governance Act of 2011;

Establish and maintain professional and technical educational systems for the
sustained development of the necessary manpower to manage and operate
its affairs and business;

Invest its funds as it may deem proper and necessary, but subject to
applicable lase, rules and regulations, in any activity related to the Center,
including in any bonds or securities and guaranteed by the Government of the
Philippines;

Acquire assets, real or personal, interest therein and encumber or otherwise
dispose the same as it may deem proper and necessary in the conduct of its
business;

Borrow money from local or foreign sources as may be necessary for its
operations, subject to applicable laws, rules and regulations;

Accept any gifts, contributions, endowments, grants, bequests and devices of
any kind of real or personal property which are necessary and proper for the
attainment of the purpose of the hospitals; and

Perform such acts and exercise such functions as may be necessary and
proper for the attainment of the purposes and objectives herein specified.


SEC. 5. Board of Trustee. ~ The affairs and business of the Liver Center shall be directed; its
properties managed; and its corporate powers exercised, unless otherwise provided in this Act, by its
‘own Board of Trustees which shall be composed of seven (7) members, as follows:
a. The Secretary of the Department of Health as Chairman of the Board or his
duly authorized representative;
b. The Undersecretary/Assistance Secretary of the Department of Health;
c. One (1) member from the private sector preferably with experience in finance,
administration or management;
d. One representative who will provide expertise in Heart, Lung and Kidney
diseases;
e. One representative who will provide expertise in Heart, Lung and Kidney
transplant;
f. One representative from non-government organization: and
g. The Heart, Lung and Kidney Center Executive Director.

The term of office, manner of appointment of the trustees and other matters pertaining to the
governance of the Heart, Lung and Kidney Center shall be determined in accordance with the
pertinent provisions of R.A. No. 10149.

The Board of Trustees shall be governed by a set of by-laws, which shall contain, among others, an
enumeration of each of the member's responsibilities, accountabilities, and cause of termination.

SEC. 6. Powers and Functions of the Board. - The Board of Trustees which shall be the policy-
making body of the Heart, Lung and Kidney Center shall have the following powers and functions:

a. Determine the general policies of the Heart, Lung and Kidney Center within
the scope of its powers, objectives and financial resources;

b. Establish the organizational structure of the Heart, Lung and Kidney Center,
define the duties and responsibilities of all officials and employees and adopt
a compensation and benefit scheme, subject to the pertinent provisions of
Republic Act No. 10149;

c. Acquire, hold and own in any manner, property of whatever nature or
description, and to dispose of such property under mode of encumbrance or
conveyance;

d. Enter into, make, perform and carry out contracts of every kind and for any
lawful purpose with any person, firm, association or corporation, whether
public or private, domestic or foreign;

e. Mortgage, lease, sell, transfer, convey or otherwise dispose of its properties;

f. Solicit and receive donations, endowments and funds in the form of
contributions, whether in cash or in kind, from both public and private sectors
and from domestic or foreign sources;

g. Open such accounts in banks and other financial institutions, and to disburse
such funds or invest the same as the Board of Trustees may direct to
accomplish or advance the purposes or interest of the Heart, Lung and Kidney
Center;


h. Invite foreign or local health specialist and similar experts in the various
medical fields to train the personnel, trainees, fellows or residents of the
Heart, Lung and Kidney Center;

i. Send the personnel of the Heart, Lung and Kidney Center to research
institutes, medical institutes or universities for advance training or observation
and to attend international or regional conventions, conferences, congresses
or seminars as the Board of Trustees may deem necessary to accomplish the
purposes and objectives of the Heart, Lung and Kidney Center;

j. Enter into such agreements and arrangements with other medical or similar
institutions, domestic or foreign, as may be deemed desirable by the Board of
Trustees toward promoting the purposes and objectives of the Heart, Lung
and Kidney Center;

k. Adopt set of by-laws, rules, regulations, policies, guidelines and procedures
consistent with law and provisions hereof to govern the administration and
operation of the hospital; and

|. Do all such other acts and things as are or may be necessary for or incidental
to the accomplishment of the purposes and objectives of the Heart, Lung and
Kidney Center.

SEC. 7. Duties and Responsibilities of the Executive Director. - The Heart, Lung and Kidney Center
shall be headed by the Executive Director who shall have the following duties and responsibilities:

a. Prepare the agenda for the meetings of the board, and to submit for
consideration of the board such policies and measures as he/she believe(s)
necessary to carry out the purposes and objectives of this Act;

b. Execute, administer and implement the policies and measures approved by
the board;

c. Exercise such other powers and perform such other duties provided in the by-
laws and as vested to him by the board.

SEC. 8. Program for Indigents. - The Department of Health shall ensure that the Heart, Lung and
Kidney Center shall adopt and enforce a program for indigents needing Heart, Lung and Kidney
products and patients with Heart, Lung and Kidney diseases in accordance to the implementing
guidelines on classification of patients on Availment of Medical Social Services in Government
Hospitals.

SEC. 9. Retention of Income. — The Heart, Lung and Kidney Center is hereby authorized to retain and
utilize their income derived from its operation and non-patient related activities for the maintenance of
the other operating expenditures, including capital outlay especially in the acquisition of equipment
and supplies, subject to auditing rules and regulations. Further, no amount from such income shall be
used to augment the salaries and other compensation of the Heart, Lung and Kidney Center
personnel beyond the amounts determined by the Governance Commission for Government-Owned
and Controlled Corporations (GOCC), as provide for in RA No, 10149.

The Department of Health (DOH), in coordination with the Department of Budget and Management
(DBM) shall issue the necessary rules and regulation to implement this provision.

SEC. 10. Exemption from Taxes. — The Heart, Lung and Kidney Center shall be exempt from the
payment of taxes on all contribution thereto and alll accruals on its income and investment earnings.


‘Any donation, contribution, bequest, subsidy or financial aid which may be made to it shall constitute
allowable deduction from the income of the donor for the income tax purposes and shall be exempt
from donor's tax subject to such conditions as provided in the National Internal Revenue Code of
1997, as amended.

The Heart, Lung and Kidney Center shall be exempt from all other taxes, whether direct or indirect on
its income, properties and operations,

SEC. 11. Contracts. - The Heart, Lung and Kidney Center shall have the authority to enter into
contracts with any person or entity, domestic or foreign and with government for the undertaking of
the varied aspects of the Heart, Lung and Kidney Center, including the acquisition, by way of
purchase, lease, rent or other deferred payment arrangements of equipment and/or raw materials and
supplies, as well as for services connected therewith under such terms and conditions as it may deem
proper and reasonable.

In the acquisition and disposal of property real or personal, a bidding process shall be necessary to
conform to the requirements of public bidding as provided for in Republic Act No. 9184, otherwise
known as the Government Procurement Reform Act and related laws.

SEC. 12. Supervision. ~ The Heart, Lung and Kidney Center shall be under the direct supervision of
the Department of Health for purposes of policy direction and control. It shall submit an annual report,
pursuant to the pertinent provisions of R.A. No. 10149.

SEC. 13. Implementing Rules and Regulations. — Within thirty (30) days from the completion of the
appointment of its members, the Corporation's Board of Trustees shall convene to formulate the rules
and regulations necessary for the implementation of this Act.

SEC. 14. Appropriations. - The amount of Two Hundred Million Pesos (Php 200,000,000.00) is
hereby appropriated for the initial operation and maintenance of the Heart, Lung and Kidney Center
shall be included in the annual General Appropriations Act

SEC. 15. Separability Clause. - If, for any reason, any section or provision of this Act is declared
unconstitutional or invalid, the other sections or provisions hereof which are not affected shall
continue to be in full force and effect.

SEC. 16. Repealing Clause. - All laws, decrees, executive orders, proclamations, rules and
regulations or parts thereof inconsistent herewith are hereby repealed.

SEC. 17. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in any newspaper of general circulation.

Approved.