Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 3406 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
PROVIDING FOR THE PUBLIC DISCLOSURE OF THE STANDARD COST 
OF DRUGS, PROCEDURES, AND SERVICES BY HOSPITALS AND 
AMBULATORY SURGICAL CENTERS 
EXPLANATORY NOTE 
The Universal Health Care Act, or Republic Act 11223 and RA 7875, 
otherwise known as the National Health Insurance Act of 1995, has been a 
landmark legislation in the State’s effort to protect and promote the right to 
health of all Filipinos. 
Since their enactment, Filipinos have enjoyed more accessible 
healthcare, especially among the marginalized. The sentiments, however, of 
more Filipinos remain that many healthcare services require financial 
hardships, particularly because of charges that are not known to patients 
beforehand.  
In an evaluation of the National Health Insurance Program, 
beneficiaries reported that 86% of the claims involved out-of-the-pocket 
payments1. In a separate study of the health seeking-behavior of Filipinos, 
80% reported that they are financially unprepared for critical illness 
treatment while some 52% feel that they are not financially ready, in case a 
family member suffers a critical illness. 2 
1 https://academic.oup.com/heapol/article/28/5/536/570982 Accessed on November 8, 
2022 
2 https://www.manulife.com.ph/about-us/newsroom/latest-news/2020-health-study.html 
Accessed on November 11, 2022 
August 7, 2025
4:11 pm


Understanding Filipino sentiments toward health and critical illness is 
an important factor in fulfilling Universal Health Care for all. This bill 
proposes that hospitals and ambulatory surgical centers make public 
advisories of the costs of drugs, treatments, and services they offer to enable 
patients and their families to plan their health care and treatment and 
manage their financial expectations.  
Although the Department of Health issued Administrative Order 0454 
in 2021 to direct all DOH Health Facilities to provide public access to price 
information of all their health services, enacting this proposed bill into law 
will institutionalize this directive. 
Treating the most common diseases that affect Filipinos with 
professional medical care is more attainable when families are aware and 
informed of their options and can compare the costs of treatment between 
various health facilities.   
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
TWENTIETH CONGRESS 
First Regular Session 
House Bill No. 3406 
INTRODUCED BY REPRESENTATIVE PM VARGAS 
AN ACT 
PROVIDING FOR THE PUBLIC DISCLOSURE OF THE STANDARD COST 
OF DRUGS, PROCEDURES, AND SERVICES BY HOSPITALS AND 
AMBULATORY SURGICAL CENTERS 
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 “Hospital Cost 
Transparency Act”. 
SECTION 2. Declaration of Policy. – It is the policy of the State to protect 
and promote the right to health of the people and instill health consciousness 
among them. 
SECTION 3. Definition of Terms. – For purposes of this Act, the terms: 
(a)
“Ambulatory Surgical Center” shall refer to a public or private
medical-surgery establishment with an on-site organized
medical staff of physicians and a permanent facility with 16
operating rooms and equipment that does not provide services
or accommodations for patients to stay overnight;
(b)
“DOH” shall refer to the Department of Health;
(c)
“Hospital” shall refer to a facility licensed to provide care and
treatment for sick or injured patients, primarily while they are
acutely ill or chronically ill. It must have facilities for diagnostic
treatment and major surgery and maintains permanent and
full-time facilities for the care of overnight resident bed patients
under the supervision of one or more licensed physicians; and


(d) 
“Secretary” shall refer to the Secretary of the Department of 
Health. 
 
SECTION 4. Data Reporting by Hospitals and Ambulatory Surgical 
Centers and Public Posting. –  
 
(a) 
Quarterly Reporting Requirement. – Beginning one (1) year from 
the enactment of this law, hospitals shall report to the 
Secretary, not later than forty-five (45) days after the end of 
each calendar quarter, for each procedure or drug selected 
under Subsection (B) of this Section, and ambulatory surgical 
centers shall report to the Secretary, for each procedure 
selected under Section 5, the following data: 
 
1. The frequency with which the hospital performed the 
procedure, or administered the drug in an inpatient 
setting, or the center performed the procedure during 
such quarter; 
 
2. If the procedure was performed or the drug was so 
administered during such quarter, the average and the 
median of the price charged by the hospital or center for 
such procedure or drug during such quarter; 
 
(b) 
Selection of Procedures and Drugs. – Based on national data, 
the Secretary shall select the following: 
 
1. The twenty-five (25) most frequently performed hospital 
inpatient procedures; 
 
2. The twenty-five (25) most frequently performed hospital 
outpatient procedures; and 
 
3. The fifty (50) mist frequently administered drugs in a 
hospital inpatient setting. 
 
The Secretary shall periodically update the procedures and 
drugs selected. 
 
SECTION 5. Administrative Provisions. –  
 
(a) 
Classification of Procedures. – For the purpose of Section 4, the 
Secretary shall establish rules for the classification of different 
medical procedures and for the assignment of items and 
services to these procedures; 
 
(b) 
Computation of Average and Median Prices. – For purposes of 
Section 4, the computation of an average and median price for 
a procedure or drug shall be in accordance with a methodology 


prescribed by the Secretary. Such methodology may provide for 
reporting by the hospital or ambulatory surgical center of unit 
prices for specific items and services included in a procedure, 
including appropriate per diem prices, and a method of 
converting such unit prices for a procedure to an average and 
median price for such procedure. 
 
(c) 
Form of Report and Notice. – The Secretary shall specify the 
electronic form and manner by which a hospital or ambulatory 
surgical center shall report data under Section 4 and the form 
for posting of notices under Section 5 (b). 
 
SECTION 6. Public Availability of Data. – 
 
(a) 
Public posting of data. – The Secretary shall promptly post, on 
the official website of the Department of Health the data 
reported under Section 4. Such data shall be set forth in a 
manner that promotes price comparison among hospitals and 
ambulatory surgical centers. 
 
(b) 
Notice of availability. – A hospital and ambulatory surgical 
center shall prominently post at each admission site of the 
hospital or center a notice of the availability of the data 
reported under Section 4 on the official public web site of the 
Department of Health. 
 
SECTION 7. Penalty. – Any hospital or ambulatory surgical center who fails 
to comply with the provisions of this Act shall suffer a fine of not more than 
Ten Thousand Pesos (P10,000.00). 
 
SECTION 8. Appropriations. – To carry out the provisions of this Act, such 
amount as may be necessary is hereby authorized to be appropriated from 
the National Treasury. Thereafter, the amount necessary for the continuous 
operation of the Public Disclosure Program shall be included in the annual 
appropriation of the DOH. 
 
SECTION 9. Separability Clause. – If any provision of this Act is held invalid 
or unconstitutional, the same shall not affect the validity and effectivity of the 
other provisions hereof. 
 
SECTION 10. Repealing Clause. - All laws, decrees, orders, and issuances, 
or portions thereof, which are inconsistent with the provisions of this Act, are 
hereby repealed, amended or modified accordingly. 
 
SECTION 11. Effectivity Clause. – This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in two (2) newspapers of general 
circulation. 
 
Approved,