REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

848
HOUSE BILL NO. __

EXPLANATORY NOTE

This bill seeks to prohibit the privatization and corporatization of public
hospitals, public health facilities and public health services in the country.
This bill has already been approved by the House of Representatives on its 3"
and final reading in the 17 Congress. It is now being filed to secure the
government’s commitment “to protect and promote the right to health of the
people and to instill health consciousness among them (Section 15, Article II of
the 1987 Philippine Constitution).

Public health care in the Philippines is paramount. It is a constitutionally
guaranteed right. Privatization of public hospitals, facilities and other health
services is a violation of this right. Privatization of public health services is an
offense to the people. It is an affront to ordinary wage earners who cannot
afford the high cost of hospitalization, and an outrage to those who have none.
It is a challenge to the government’s initiative in delivering quality social
services to the people especially the poor and the marginalized.

Privatization in healthcare is defined by the World Health Organization
as a “process in which non-governmental actors become increasingly involved
in the financing and/or provision of health care services.” It is simply the
divestment or sale by the government of its assets in favor of the private sector.
Privatization of public health services will definitely do more damage than good
to our people. It is an avenue leading to a spiral rise of morbidity and mortality
in the countryside where public health care service will just become a
commodity with a high price tag attached to it.


In view thereof, the passage of this bill is urgently sought.

J Muschell, Technical Briefing Note on Privatization in Health, 1995.

'. TYRONE D. AGABAS

Representative
6 District, Pangasinan


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3848

AN ACT PROHIBITING THE PRIVATIZATION AND CORPORATIZATION OF
PUBLIC HOSPITALS , PUBLIC HEALTH FACILITIES AND PUBLIC HEALTH
SERVICES, AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF

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 “Anti-
Privatization of Public Hospitals, Health Facilities and Health Services
es

Sec. 2. Declaration Of Policy — It is the policy of the State to ensure the
protection and promotion of the right to health of the people and to instill
health consciousness among them. Further, the State shall endeavor to
make essential goods, health and other services available to all people at
affordable cost.

SEC. 3. Definition of Terms. - As used in this Act:

(a) Indigent/Service/Poor patients refer to those who have no
source of income, or whose family income are below the mandated
minimum daily wage and/or below the minimum monthly cost of
living as set by appropriate government agencies.

(b) Privatization refers to the process in which non-government
actors become increasingly involved in the financing and the

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provision of health care services which include: outright sale;
public-private partnership; corporatization; contracting out of
equipment; joint venture; franchising; management control and
corporatization; leasing; and user charges;

(c) Public hospitals refer to all Department of Health (DOH) retained
and national hospitals, provincial and regional hospitals under the
local government, including specialty hospitals with separate
legislative charters like the Philippines Heart Center, the National
Kidney and Transplant Institute, the Lung Center of the Philippines
and the Philippines Children's Medical Center;

(d) Public health facilities refer to health centers, lying-in clinics,
and barangay health stations under the national or local
government; and

(e) Public health services refer to all diagnostic, laboratory, medical,
surgical, and health-related services provided by public hospitals
and public health facilities to indigent, service or poor patients.

SEC. 4. Prohibition of Privatization of Public Hospitals, Public Health
2s, and Public Health Services. — No public hospital, public health
facility and public health services shall be privatized. Likewise, under no
circumstance shall the Secretary of Health or any person, whether natural
or juridical, initiate, cause, and approve the privatization of any public
hospital, public health facility or public health services.

Facilit

This prohibition against privatization shall cover specialty hospitals
with separate legislative charters like the Philippine Heart Center, the
National Kidney and Transplant Institute, the Lung Center of the
Philippines and the Philippines Children’s Medical Center.

SEC. 5, Bed Allotment for Indigent/Service/Poor Patients in Public
Hospitals. — At least ninety percent (90%) of the total bed capacity of all
public hospitals shall be allotted for indigent/service/poor patients,

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pursuant to Republic Act No. 1939, otherwise known as “ An Act
Prescribing the Appropriate Share of the National, Provincial, City and
Municipal Governments in the Financial Contributions for the Operation
and Maintenance of Free Beds in Government Hospitals and/or the
Establishment of Additional Wards or Hospitals in the Philippines”.

SEC. 6. Liability and Accountability. — Any person, whether natural or
juridical, who initiates, causes, and approves the privatization of any public
hospital, public health facility or public health services shall be considered
in violation of this Act.

. 7. Penalties. — Any person who violates any provision of this Act shall be
penalized accordingly:

(a) First Offense — A fine of not less than One hundred thousand
pesos (PhP100,000.00) but not more than Two hundred thousand
(PhP200,000.00) and suspension of one (1) to two (2) years from
public office;

(b) Second Offense — A fine of not less than Two hundred thousand
pesos (PhP200,000.00) but not more than Five hundred thousand
pesos (PhP500,000.00) and temporary disqualification from holding
any public office for not less than three (3) years but not more than
six (6) years; and

(c) Third Offense - A fine of not less than Five hundred thousand
pesos (PhP500,000.00) but not more than Eight hundred thousand
pesos (PhP800,000.00) and removal from public office and
perpetual disqualification from holding any public position or office.

SEC. 8. Implementing Rules and Regulations. - The Secretary of the
Department of Health shall promulgate the rules and regulations
necessary to implement the provisions of this Act within ninety (90) days
from its effectivity.

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SEC. 9. Separability Clause. — If any provision of this Act is declared
invalid or unconstitutional, the other provision hereof which are not
affected thereby shall continue to be in full force and effect.

SEC. 10. Repealing Clause. - All laws, order, decrees, rules and
regulations and other issuances or parts thereof which are inconsistent
with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general
circulation.

Approved,

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