Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
This measure mandates the existing specialty hospitals namely Philippine Heart 
Center (PHC), Lung Center of the Philippines (LCP), National Kidney and Transplant 
Institute (NKTI), and the Philippine Children's Medical Center (PCMC) to establish 
satellite hospitals in provinces which are geographically isolated from their region's 
tertiary care hospital to be managed and operated by the specialty hospitals pursuant 
to their respective charters.  
It is a very common occurrence for underprivileged Filipinos to pay for transportation 
costs to and from the health facilities and other miscellaneous expenses for family 
members who accompany the patients. Those suffering from heart, lung, kidney and 
pediatric diseases would have to travel to major cities where specialized health 
facilities are currently located.  
This bill seeks to address the current inequities and geographical barriers in accessing 
specialized health care. It seeks to cater to the treatment of the main causes of death 
among Filipinos such as heart disease, vascular diseases, malignant neoplasms, 
avitaminosis and other nutritional deficiency, and chronic lower respiratory diseases. 
In view of the foregoing, the immediate passage of this bill is most earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
 MIGUEL LUIS R. VILLAFUERTE 
TSUYOSHI ANTHONY G. HORIBATA 
NICOLAS ENCISO VIII 
July 14, 2022
1:45 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT 
ESTABLISHING SATELLITE SPECIALTY HOSPITALS TO FACILITATE ACCESS 
TO SPECIALIZED MEDICAL CARE IN IDENTIFIED REGIONS OF THE 
PHILIPPINES AND APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:  
SECTION 1. Short Title. - This Act shall be known and cited as the "Satellite Specialty 
Hospitals Act."  
SEC. 2. Declaration of Policy. - Section 15, Article II of the 1987 Constitution 
mandates that the State shall protect and promote the right to health of the people and 
instill health consciousness among them. Towards this end, the State shall adopt an 
integrated and comprehensive approach to health development by providing them 
specialized health services, which shall be available and accessible to all the people 
at affordable cost.  
SEC. 3. Establishment of Satellite Specialty Hospitals or Specialized Units. - The 
following specialty hospitals are mandated to establish satellite hospitals in identified 
regions to be managed and operated pursuant to their respective charters:  
(1) Philippine Heart Center created under Presidential Decree No. 673;
(2) National Kidney and Transplant Institute created under Presidential Decree
No. 1832;
(3) Lung Center of the Philippines created under Presidential Decree No. 1823;
and  (4) Philippine Children's Medical Center created under Presidential Decree
No. 1631.
Provided, That these specialty hospitals must formulate prioritization plans for the 
purpose of implementing this Act, subject to the following considerations:  
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(a) The specialty hospitals shall craft the criteria for the identification and
development of their satellite hospitals, based on the following:
(i) The top burden of disease in the region;
(ii) Legal mandates specified in other laws such as but not limited to the
Republic Act No. 11215 or the "Integrated Cancer Control Act", Republic
Act No. 11036 or the "Mental Health Act", and Republic Act No. 9994 or the
"Expanded Senior Citizens Act"; and,
(iii)Other considerations that the specialty hospitals may deem important
for the selection process.
(b) Provinces which are geographically isolated from their region's tertiary care
hospital shall likewise be given priority for the establishment of satellite specialty
hospitals within the nearest general hospital, whichever is feasible;
Nothing in this Act shall be construed as restricting the right of the Department of 
Health (DOH) to establish specialty hospitals or specialized units in DOH hospitals in 
different regions.  
SEC. 4. Period of Implementation. - The establishment of at least one (1) satellite 
specialty hospital in identified region/s shall be completed over a period of five (5) 
years: Provided, That payments for amortization of outstanding multi-year contract 
obligations incurred under this Act may extend beyond this period.  
SEC. 5. Minimum Standards of Construction. - The Health Facilities and Services 
Regulatory Bureau of the Department of Health shall issue guidelines for the minimum 
design standards of specialty hospitals in accordance with all applicable laws, rules 
and regulations: Provided, That the application for a permit to construct a special 
hospital shall be accompanied by a hospital plan: Provided, Further That no permit to 
construct a special hospital can be issued without complying with the minimum 
standards set forth in the guidelines to be issued pursuant to this Section.  
SEC. 6. Procurement. - Procurement of medical equipment and supplies to be used 
by the satellite specialty hospitals shall be exempt from the provisions on bidding 
process required under Republic Act No. 9184 or the "Government Procurement 
Reform Act" and other relevant laws: Provided, That the following information and 
documents related to the procurement shall be published in the Government 
Procurement Policy Board online portal, the website of the procuring entity concerned, 
if available, and at any conspicuous place reserved for this purpose in the premises of 
the procuring entity within seven (7) working days from the date of acceptance of the 
award:  
(i) Project name;
(ii) Approved budget for contract;
(iii) Contract period;
(iv) Name of winning supplier, distributor, manufacturer, contractor or consultant;
(v) Amount of contract as awarded;
(vi) Notice of award;
(vii) Date of award and acceptance;
(viii) Contract or purchase order; and


(ix) A certification stating that the procuring entity exerted all efforts to secure the
most advantageous price to the government based on existing price data of the
agency, the DTI or other relevant agencies or preliminary market scanning done
by the agency showing prevailing market prices and practice.
SEC. 7. Tax exemptions. – All donations, contributions or endowments which may 
be made by entities or persons to the specialty hospitals for the benefit of their satellite 
hospitals shall be exempt from income and gift taxes. The importation of medical 
equipment to be used by the satellite specialty hospitals shall likewise be exempt from 
import duties, taxes, and other fees.  
SEC. 8. Report to Congress. - Within one hundred twenty (120) days from the 
effectivity of this Act, the executive directors of the specialty hospitals shall present a 
report to Congress detailing the construction plan of said satellite specialty hospitals, 
which shall include the prioritization plan as provided under Section 3 of this Act. For 
this purpose, the Congress shall establish a Joint Congressional Oversight Committee 
composed of five (5) members of each house to be appointed by the Senate President 
and the House Speaker, respectively. This Committee shall determine whether such 
acts, orders, rules and regulations are within the restrictions provided herein.  
SEC. 9. Sunset Review. - As the need arises or within five (5) years after its effectivity, 
the Congressional Oversight Committee shall conduct a sunset review of this Act. The 
term 'sunset review' shall mean a systematic evaluation of the accomplishments and 
impact of this Act for purposes of determining remedial legislation.  
SEC. 10. Appropriations. - The amount necessary for the implementation of the 
provisions of this Act shall be taken from the current year's budget of the specialty 
hospitals enumerated in Section 3 of this Act. Thereafter, such sums as may be 
necessary for the continued implementation of this Act shall be incorporated in the 
annual General Appropriations Act.  
SEC. 11. Implementing Rules and Regulations. - The Department of Health, in 
coordination with the specialty hospitals enumerated in Section 3 hereof, shall  
promulgate the rules and regulations implementing the provisions of this Act within 
sixty (60) days from its effectivity.  
SEC. 12. Separability Clause. - If for any reason, any part or provision of this Act is 
declared invalid or unconstitutional, the remaining parts or provisions not affected shall 
remain in full force and effect.  
SEC. 13. Repealing Clause. - All laws, presidential decrees, executive orders, rules 
and regulations contrary to or inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
SEC. 14. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
in the Official Gazette or in a newspaper of national circulation.  
Approved,