Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon C

FIFTEENTH CONGRESS

First Regular Session

3033

House Bill No.

Introduced by Hon, Rodolfo G . Biazon

EXPLANATORY NOTE

Itis the Age of Wellness. Thus, it is not surprising that there is a huge interest
in “medical tourism.” This is due in part to the huge revenue potential of this industry
which, according to the International Trade Commission in Geneva, Switzerland, is a
$40-billion global industry, and expected to grow to $188 Billion in 2013. In Asia, at
least four countries are reputed to be enjoying the fruits of their medical tourism
programs: in 2005 Thailand had 1,000,000 medical tourist arrivals; India 600,000;
Singapore 350,000; and Malaysia 400,000. In 2005 their earnings were: Thailand
US$1.1 Billion; India $600 Million; and Malaysia $400 Million.

The Philippines expects it can get a considerable share of the pie and initially
projects a conservative $125 Million on the first few years, and growing progressively
each year. After all, our medical professionals, having been educated and trained in
top medical universities in Europe, the United States and other parts of the world, are
among the best in the world and among the most sought after.

Executive Order No. 372 (EO 372), issued on October 18, 2004, created a
private-public sector partnership to promote the development of three service sectors,
namely: a) Information and Communications Technology; b) Health and Wellness;
and c) Logistics.

For the Health and Wellness sector, which now has the “Philippine Medical
Tourism Program (PMTP),” eleven government agencies were tasked to work
together to promote the same. The different mandates and expertise of each agency
are supposed to contribute much to the development of the Philippine Medical
Tourism Program.

Unfortunately, due to the number of participating agencies, and despite the
good intentions of EO 372, a certain amount of confusion has been experienced in the
process — by both the agencies involved and by the private sector desiring to


participate, and there is still much to be desired in the rate in which the Task Force is
achieving its objectives.

While we laud the active efforts of the Department of Health, we believe that
its focus should be the provision of health services to Filipinos, and that as such, its
role in the medical tourism program should be to ensure that, despite the influx of
medical tourists, adequate health services should be made available for the citizens by
participating hospitals and clinics. It should thus serve as a check to the efforts of the
DOT and the private sector, which we fear it cannot do as well if it were the principal
agency promoting the same.

This bill, therefore, seeks to centralize the functions of the Task Force, and to
integrate most of the different functions of the different agencies pertinent to the
PMTP, in one office.

This bill seeks the creation of the Medical Tourism Bureau, hereinafter referred
to as the Bureau, within the Department of Tourism. The Bureau shall, among others:
1) formulate the policies relative to the development of the industry; 2) implement the
plans and programs relative thereto; 3) administer, coordinate and supervise all
activities of the government concerning health and wellness; 4) facilitate the
simplification of procedures and regulations for the availment of medical services by
foreign tourists and returning OF Ws and other Filipinos from abroad; 5) represent the
government in such conferences concerning health and wellness; and 6) formulate
standards for health and wellness-oriented establishments that will prescribe minimum
levels of operating quality and efficiency in order to ensure that facilities, personnel
and services are maintained in accordance with acceptable local and international
norms in the operations of tourism-oriented establishments.

‘The Department of Tourism has been at the forefront of medical tourism for
years prior to the issuance of Executive Order No. 372, underscoring its expertise in
the industry. Its programs, promotion and marketing efforts have been launched
several years ago and have slowly but steadily reaped gains for the country.
Specifically, the department has launched a Philippine Health Tourism Program that
had been planned with a development approach divided into three stages, and a
comprehensive study of the program’s prospects, components, and profiles of target
markets

Just as an example, it is worth noting that to its credit, the exhaustive efforts
made by the department in organizing the spa service providers into an association,
and setting standards for the quality of service they render have resulted in the
impressive awards received by some of its spa establishments and organization from
several prestigious award-giving bodies in the Asian spa community.

Medical tourism has several components, and medical treatments or services
are only one of them. To become a medical tourist one must needs travel to avail of
such service, and usually such choice is made considering the competitive cost of the


service/treatment required, and also the other leisurely activities, products, and
comforts for the patient and his companion/s. The Department of Tourism, with its
many years of experience in this field. has very satisfactorily developed the latter; and,
since the former concern is not greatly dissimilar, it would only be a matter of time,
and with assistance from the other concerned agencies. for it to have all of these

components running very smooth!

For the Phi
especially the medi
acceleration of 30%
to the exodus of our medi

pines. promoting and advancing our health and wellness sector,
touri three important implications: the
of foreign exchange. and a stop

jo-economie development. earni

| professionals.

There is urgent need to position the country as a medical tourism destination
now. The sooner that this office is established. the sooner we can achieve our goals.

For the reasons cited

above, the passage of this bill is urgently sought.

Representat
Lone Distriet, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bill No. 303 3

Introduced by Hon. Rodolfo G. Biazon

AN ACT
CREATING THE MEDICAL TOURISM BUREAU WITHIN THE DEPARTMENT.
OF TOURISM, DEFINING ITS POWERS AND FUNCTIONS, AND FOR OTHER
PURPOSES

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

Section 1. Declaration of Policy. — It is hereby declared a policy of the State to
promote, encourage and develop its health and wellness sector, in particular the medical
tourism industry, as a major national activity in which private sector investment effort and
initiative are fostered and supported, and through which socio-economic development may be
accelerated, foreign exchange eared, and intemational and returning Filipino medical
tourists offered a choice of special packages of medical services coupled with leisure
components.

Sec. 2. Statement of Objectives. - This Act seeks to establish at the seat of
government a bureau whose task will be to properly and adequately address the needs of
foreign tourists as well as Filipino balikbayans and OFWs seeking medical treatment in the
country, and of the private sector seeking to provide the services for those needs.

Sec. 3. Definition of Terms — For purposes of this Act, the following terms are herein
defined:

(A) "Medical Tourism" — travel to the Philippines for the purpose of availing
healthcare services or treatment of illnesses and health problems in order to
maintain one’s health and well-being (DOT, DOH, PEZA 2006). The concept of
this new tourism product is to offer cost-effective medical treatments while
showcasing tourist attractions in the Philippines.

(B) “Health and Wellness” — refers to the sector under which the medical tourism
industry falls, covers a wide spectrum of services that promote physical well-
being which ranges from holiday packages bundled with everything from spa to
cosmetic treatments to cardiovascular surgery; and diagnostic services to
rehabilitative care. May be used interchangeably with the term “medical
tourism.”


(co)

Sec.

“Health care facility” means any institution, building, or agency or portion
thereof, whether public or private (for-profit or nonprofit) that is used, operated,
or designed to provide health services, medical treatment, or nursing,
rehabilitative, or preventive care to any person or persons. This includes, but is
not limited to, ambulatory surgical facilities, health maintenance organizations,
home health agencies, hospices, hospitals, infirmaries, intermediate care
facilities, kidney treatment centers, long-term care facilities, medical assistance
facilities, mental health centers, outpatient facilities, public health centers,
rehabilitation facilities, residential treatment facilities, skilled nursing facilities,
and adult daycare centers. The term also includes, but is not limited to, the
following related property when used for or in connection with the foregoing:
laboratories, research facilities, pharmacies, laundry facilities, health personnel
training and lodging facilities, and patient, guest, and health personnel food
service facilities, and offices and office buildings for persons engaged in health
care professions or services.

"Health care provider" means any person or entity who provides health care
services including, but not limited to, hospitals, medical clinics and offices,
special care facilities, medical laboratories, physicians, pharmacists, dentists,
physician assistants, nurse practitioners, registered and other nurses, paramedics,
firefighters who provide emergency medical care, emergency medical or
laboratory technicians, and ambulance and emergency medical workers.

. 4. Creation of the Medical Tourism Bureau ~ There is hereby created a Medical

Tourism Bureau under the Department of Tourism. The Bureau shall be headed by a

Director.

Within ninety (90) days from the approval of this Act, the Bureau shall draw up the
plans, programs and policies to implement the National Medical Tourism Program, and

conduct a
framework

briefing for all concerned government agencies. The plan shall serve as the
for the government’s medical tourism program.

Sec. 5. Powers and Responsibilities of the Bureau - The Bureau shall have the
following powers and responsibilities, which it shall exercise:

1

=

Formulate policies, plans, programs and projects to promote the Medical Tourism
industry of the country;

Administer, coordinate and supervise all activities of the government concerning
health and wellness;

Advise the Secretary on the promulgation of laws relative to the policy, plans,
programs and projects designed to promote and develop the health and wellness
sector and medical tourism industry;

Facilitate the simplification of procedures and regulations for the availment of
medical services by foreign tourists and returning OFWs and Filipino balikbayans;
Represent the government in all such conferences concerning health and
wellness/medical tourism;

Formulate standards for health and  wellness/medical _tourism-oriented
establishments that will prescribe minimum levels of operating quality and
efficiency in order to ensure that facilities, personnel and services are maintained
in accordance with acceptable local and international norms in the operations of
tourism-oriented establishments;



7. Approve the construction standards of accredited health care facilities with the
assistance of the Department of Health;

8. Approve the construction standards of accredited medical tourism-oriented and —
related establishments including hotels, resorts, inns, and other related facilities
and services and prescribe information reporting on the purchase, sale or lease of
the said establishments and facilities;

9. Undertake research studies and surveys for the continuing analysis of economic
conditions and trends in the global medical tourism field; and maintain a statistical
data bank on the health and wellness and medical tourism industry;

10, Promote the country as a premier Health and Wellness destination through
international local expositions, fairs and conferences;

11. Design products and implement programs to encourage private-sector i
and participation in health and wellness and medical tourism act
projects;

12. Monitor and evaluate plans, programs and projects of the Bureau;

13. Promulgate rules and regulations necessary to carry out the Bureau’s objectives,
policies and functions;

14. Analyze specific geographic areas with potential medical tourism value and
encourage private sector investment in these areas;

15. Enlist the aid, assistance and support of any and all government agencies, civil or
military, in the implementation of the laws pertaining to the bureau's rules and
regulations;

16. Recommend sanctions for criminal liability of those who are in violation of the
provisions of this Act or any of its rules and regulations promulgated pertaining to
the medical tourism industry;

17. Exercise such other powers and functions as may be necessary or incidental to the
attainment of its mandate.

sstment
ies. and

Sec. 6. Structure and Staffing Pattern. ~ Within sixty (60) days from approval of this
Act, the Secretary of Tourism, upon the recommendation of the Director of the Bureau, shall
design and recommend for approval of the President the Bureau’s positions, structure and
staffing pattern. The positions hereunder created shall be filled with regular appointments.

Sec. 7. Transitory Provision. ~ The functions of the Office of Product Research and
Development, or any such office performing the task, pertaining to health and wellness are
hereby transferred to the Bureau.

The functions of the different agencies involved in the Task Force for Health and
Wellness pertaining to medical tourism, including the accreditation of facilities, granting of
licenses, are also hereby transferred to the Bureau.

Sec. 8. Appropriations. — The amount necessary for the effective implementation of
this Act shall be taken from the current fiscal year’s appropriation of the DOT. Thereafter,
such sum as may be necessary for the implementation of this Act shall be included in the
annual budget of the DOT under the General Appropriations Act.

Sec. 9. Implementing Authority. — The Secretary of the Department of Tourism shall
promulgate the implementing rules and regulations, orders and other issuances as may be

necessary to implement and carry out the intent, objectives, purposes and provisions of this
Act.


Sec. 10. Separability Clause. — If any part, section or provision of this Act is held
invalid or unconstitutional, other provisions not affected thereby shall remain in force and
effect.

Sec. 11. Repealing Clause. — All other laws, decrees, orders, issuances, rules and
regulations that are inconsistent with the provisions of this Act are hereby repealed, amended
or modified accordingly.

Sec. 12. Effectivity. ~ This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved.