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EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

~ introduced by Representative Rufus B. Rodriguez —

aa 1846
House Bill No.

EXPLANATORY NOTE

Section 15, Article II (Declaration of Principles and State Policies) of the Constitution
provides that “The State shall protect and promote the right to health of the people and instill
health consciousness among them.”

This bill seeks to establish a special health fund for the improvement of health care
services in the belief that every individual's health is the concern of society. The uncertainty
Which attends most health problems further justifies the intervention of the State in the
provision of adequate health services to every individual.

Ithas been more than a decade since the enactment of Republic Act (RA) No. 7160,
otherwise known as the Local Government Code of 1991, which devolved health services to
focal government units. Many problems have been encountered in the devolution of health
functions, however, because local government units were not prepared and lacked the
necessary resources to exercise the new powers granted them under RA 7160. Local health
boards were established without the corresponding operating resources which have resulted
in an unbalanced and lopsided delivery of quality health care services. There is therefore a
need to establish a special health fund which will provide each local government unit the
resources necessary to support their local quality health care services.

The special health fund shall be apart from the appropriations allotted to health
services by the respective local government units and remittances by the Philippine Health
Insurance Corporation to the local health institutions and shall be used exclusively for the
acquisition of equipment, upgrading of facilities and services, additional allowances for
health workers, training and continuing education of health workers. The local health boards
are likewise mandated to manage the special health fund.

In view of the foregoing, approval of this bill is highly and earnestly recommended.
Vip
RUFUS B. ROD! EZ

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EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No. 1846

AN ACT
ESTABLISHING THE SPECIAL HEALTH FUND FOR THE IMPROVEMENT OF HEALTH
CARE SERVICES IN THE LOCAL GOVERNMENT UNITS AND APPROPRIATING
FUNDS THEREFOR.

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 the policy of the State
to guarantee that total quality health care is available to the people at affordable costs by
providing additional resources to local government units for the health needs of their
respective constituencies. It is also the policy of the State to see to it that all citizens be
afforded optimum health care services and make the local governments accountable for the
development and improvement of health services in their respective local

SEC. 2. Special Health Fund. ~ There is hereby established a Special Health
Fund which shall be used exclusively for the following:

‘a) Upgrading of facilities and equipment of local hospitals, rural health clinics,
lying-in clinics, emergency hospitals, puericulture centers, nursing homes, hospices and
such other health institutions found in cities and municipalities;

b) Hiring, training and continuing education of health workers, caregivers,
volunteer health workers and other ancillary personnel employed by the local governments
in their health institutions;

c) Building of new health institutions such as secondary hospitals, specialty
clinics or care centers in cities and municipalities;
d) Purchase of needed medicines and medical supplies at the lowest costs in

accordance with law; and

‘e) Establishment of mobile emergency lifelines or quick-response medical and
paramedical teams to respond to disasters, emergencies and other life-threatening
situations in the community.

SEC. 3. Role of the Local Health Boards. — |n addition to the functions of
the Local Health Board as provided for in Section 102 (b) of Republic Act No. 7160.
otherwise known as the Local Government Code of 1991, the Local Health Board shall
manage the local special health fund, which shall be remitted to them by the agencies
mentioned in Section 2 of this Act. The special health fund levy shall be automatically
retained by the local health board as well as the proceeds from fines due to violations of
health and safety laws collected by the local government units.

SEC. 4. Funding. — The Special Health Fund shall come from the following
sources:
a) Proceeds from a special levy of 1% from all sales in all local public and

private markets which shall be collected by the local governments and allocated by the
health boards:


b) _ Proceeds from fines collected for violations of health and safety regulations
from all establishments in cities and municipalities;

c) 5% of revenues derived by the Philippine Charity Sweepstakes Office
(PCSO) from lotto which shall be divided equally among all cities and municipalities;

d) 5% of the net revenues of the Philippine Amusement and Gaming
Corporation (PAGCOR) which shall be allotted equally among alll cities and municipalities;

e) Grants or donations and endowments to cities and municipalities from
private and foreign individuals, as well as, local and international, private and public
associations or foundations.

SEC. 5. Implementing Rules and Regulations. ~ The Secretary of Health
shall, in coordination with the Secretary of Interior and Local Government, issue the
necessary rules and regulations for the effective implementation of this Act.

SEC. 6. Repealing Clause. - All laws, decrees, orders, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 7. Effectivity. — This Act shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation.

Approved,