Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRESS
First Regular Session

HOUSE BILL NO. _ 2373.

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

Problem on devolved health care system persi
established by the national and local government units.

to this day, despite the mechanism

Among the problems identified were: the non-implementation of the Magna Carta
for Health Workers; delays and even non-payment of their salaries and benefits; and the
diminution of funds intended for the delivery of health services thereby causing its
fragmentation.

This Bill aims to address the flaws and issues raised against the decentralization of
health services. In order to have a comprehensive and integrated health care delivery
system as mandated by the Constitution of the Republic of the Philippines, RE-
NATIONALIZATION OF HEALTH SERVICES is the only solution.

Hence, the immediate approval of this urgent measure is earnestly requested.

EVELINA G. ESCUDERO,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" CONGRES
First Regular Session

HOUSE BILL NO.__ 2373

Introduced by REP, EVELINA G, ESCUDERO.

AN ACT
REVERTING TO THE NATIONAL GOVERNMENT THE DISCHARGE OF BASIC
HEALTH SERVICES DEVOLVED TO LOCAL GOVERNMENT UNITS (LGUs) AND
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE KNOWN
AS THE LOCAL GOVERNMENT CODE OF 1991

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

SECTION 1. Title — This Act shall be known as the “Renationalization of Devolved
Health Services and Facilities Act.”

SEC. 2. Declaration of Policy — It is the declared policy of the State that it shall protect
and promote the right to health of the people and instill health consciousness among them.
Further, the State shall endeavor to make essential goods, health and other services available to
all the people at affordable cost.

SEC, 3. Objectives — The objectives of this Act are: a) to prevent the further deterioration
of government health services and facilities brought about by devolution; b) to provide essential
health services to the people, especially the sick, the poor and marginalized sector of society; c)
to improve and uplift the morale, social and economic well-being of devolved health workers;
and, d) to develop a professional health manpower that is responsive to the people’s health needs
and problems,

SEC. 4. Re-nationalization — All health services and facilities devolved to the local
government units are hereby re-nationalized or returned to the national government. For this
purpose, the following provision of the Local government Code or RA7160, are hereby deleted
and declared no longer enforceable and effective: Section 17 (b) paragraph (1) (ii), paragraphs
(3) (iv, and (4) for health services only: Section 102 (1), (2), (3), (b) (1), (2), and (3); Section
103) (a) and (b); Section 104; Section105 and other related provisions of the Local Government
code that pertains to devolved health services and facilities.

SEC. 5. Authority to Use Income - Re-nationalized hospitals and Rural Health
Units/Centers are hereby authorized to use their income derived from their operation to improve
and upgrade their services: Provided, That the supporting financial and work plans are first
approved by the Secretary of Health.


SEC. 6. Appropriation ~ In the year following the enactment of this Act into law, the cost
of the devolved health services and facilities as of December 31, 1992 shall be deducted by the
Department of Budget and Management from the Internal Revenue Allotment of the Local
Government Units and shall be used as funding source to implement the provision of this Act,
Any deficiency shall be charged against the Organizational Adjustment fund and appropriations
saving/reserves. Thereafter, such sums as may be needed for its continued implementation shall
be included in the Annual General Appropriations Act.

The Internal Revenue Allotment of Local Government Units in the succeeding years shall
be net of the cost of devolved health services and facilities as of December 31, 1992.

SEC. 7, Implementing Rules and Regulations — The Department of Health shall formulate
the Implementing Rules and Regulations within three (3) months after the enactment of this law,

SEC. 8, Repealing Clause ~ All laws, presidential decrees, executive orders, and rules
and regulations, or parts thereof, inconsistent with the provisions of this Act are hereby repealed
or modified accordingly.

SEC. 9. Separability Clause ~ If, for any reason, any section or provision of this Act is
held unconstitutional or invalid, the other sections or provisions thereof shall not be effected
thereby.

SEC, 10. Effectivity ~ This Act shall take effect immediately upon its approval.

Approved,