I-! -i .., r, 
14"' CONGRESS OF THE 
) 
First Regular Session 
) 
REPUBLIC OF THE PHILIPPINES 
) 
7 
JUL. -3 
t -  i .. 
SENATE 
S.B.NO. 798 
Introduced by Senator Ramon Bong Revilla; Jr. 
EXPLANATORY NOTE 
It is the policy ofthe State to protect and promote the right to health of its people. 
This can be pursued by undertaking appropriate health manpower development which is 
responsive to the country's health needs and problems, Recently, there has been a 
resurgence of heart, kidney, and lung problems which have caused economic dislocation 
and the eventual curtailment of the enjoyment of productive and happy life. 
Medical centers such as the Philippine Heart Center, the National Lung Center of 
the Philippines, the National Kidney Center, and the Philippine Children' s Medical 
Center which provide specialized services were established individually and organized as 
government corporations which fimction independently of each other. Their services for 
patients and their teaching and research functions are pursued with minimum 
coordination, if any, among each other. 
There is need therefore, to integrate and rationalize these specialty centers by 
establishing a Medical Center System that will consist of existing facilities in order to 
achieve a more effective and efficient implementation of resources and thereby improve 
the health care delivery system in the country. 
Moreover, the proposed bill seeks to establish the Philippine Medical Center 
System to serve as a teaching, training and research institution for students of medicine 
and its allied fields, residents and post graduate fellows. This Philippine Medical Center 
shall be developed and maintained as a medical tertiary care institution to serve the 
public. 
Approval of this bill is urgently requested 


j 
14"' CONGRESS OF THE 
1 
First Regular Session 
1 
REPUBLIC OF THE PHILIPPINES 
' 
7 J&- .-3 ?z ::!G 
SENATE 
S.B. No. 798 
.~ 
Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
ESTABLISHING 
THE 
PHILIPPINE 
MEDICAL 
CENTER 
SYSTEM, 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Phikppines in Congress 
assem bled. 
PROVIDING FOR ITS A&INISTRATION 
AND SUPPORT AND FOR OTHER 
TITLE I 
GENERAL PROVISIONS 
SECTION 1. Establishment of the Philippine Medical Center System. - There is 
hereby established a Philippine Medical Center System, hereinafter referred to as the 
System, which shall be attached to the Department of Health. The System shall provide 
specialized medical services, professional and advanced medical training and research. I t 
shall make its services and resources available to the public, especially the indigents. 
SECTION 2. Component Units. -Without prejudice to Section 7 (b), 
the System shall consist of the following specialized research centers and 
hospitals : 
1. The Philippine Heart Center; 
2. The Lung Center of the Philippines; 
3. The National Kidney Institute; and 
4. The Philippine Children's Medical Center. 
SECTION 3. Purposes and Functions. - The purposes and functions of the 
System are as follows: 
a. To formulate, develop and implement an integrated and comprehensive 
specialized medical and health program; 
b. To operate specialty medical institutions mentioned in Section 2, as well as any 
other component unit which may be established pursuant to Section 7 (b); 
c) To provide integrated specialty medical services to the public; 
d) To provide medical practitioners, advanced instruction and training pertaining 
to its specialized health programs; 
e) To create and implement undergraduate, internship, residency, and post- 
residency programs for medical students and physicians; 
f )  To undertake research in various medical and health fields covered by its 
program; 
g) To train physicians, nurses, medical technicians, nutritionist-dieticians, 
pharmacists, other members of the medical and other allied medical fields for the 
purpose of implementing its program; 


h) To engage in a continuing education and information campaign on the nature, 
prevention, treatment and control of the various diseases covered by its program; 
i) To develop, strengthen and enhance the capabilities and technical skills for 
specialized medical care of all regional hospitals of the Department of Health; and 
j) To coordinate with the Philippine Hospital Association, as well as with non- 
governmental organizations, in delivering specialty care to the people. 
SECTION 4. The Powers ofthe System. - The System shall have the power of a 
corporation, the powers set forth in this Act and such other powers as may be granted to it 
by other laws. 
TITLE I1 
THE MANAGEMENT OF THE PHILIPPINE MEDICAL CENTER SYSTEM 
SECTION 5. f i e  Board of Trustees. - The government of the System shall be 
vested in the Board of Trustees. It shall be the highest policy-making body of the System. 
The administration of the System and the exercise of its powers are vested in the Board of 
Trustees as well as in the President of the System insofar as authorized by said Board. 
SECTION 6. Composition of the Board of Trustees . - The Board of Trustees 
shall be composed of the Secretary of Health as the Ex-OEcio Chairman, the Chairman 
of the Committee on Health of the Senate, the Chairman of the Committee on Health of 
the House of Representatives, the Secretary of Science and Technology, the President of 
the System, the Chairman of the Association of Philippine Medical Colleges, the 
Directors of the component units of the System and three (3) members representing the 
medical and allied medical profession to be appointed by the President of the Philippines. 
SECTION 7. Powers of the Board of Trustees. - The Board of Trustees shall have 
the following powers and duties in addition to its general powers of administration: 
a) To receive and appropriate to the ends specified by law such sums as maybe 
provided by law for the support of the System; 
b) To provide for the establishment of additional component units; 
c) To appoint, on recommendation of the Executive Director of the System, 
physicians, nurses, nutritionist-dieticians, pharmacists, other medical staff 
members, instructors, researchers, other employees of the System; to fix their 
compensation, hours of service, and such other terms and conditions as it may 
deem proper consistent with civil service laws, rules and regulations; 
d) To receive in trust, gifts, legacies and donations of real and personal property 
for the benefit of the System or of any of its component units; 
e) To establish a fund raising program to supplement the funds appropriated by 
the government; 
9 To prescribe rules for its own government; 
g) To enact for the administration of the System such ordinances and regulations, 
not contrary to law as are consistent with the purposes of the System; and 
h) To exercise such other purposes as may be necessary for the proper discharge 
of its functions and for the attainment of the purposes of the System. 
SECTION 8. n e  Chairperson. - The Chairperson of the Board of Trustees shall 
preside over all its meetings. In his absence, the following shall act as Chairperson in the 
order herein stated: The Executive Director of the System, then the other appointive 
members of the Board in the order of seniority of their appointment. 


SECTION 9. Meetings, QuOTUm. - 
a) Regular meetings of the Board shall be held once a month 
b) Special meetings may be held as often and whenever necessary as may be 
called by the Chairperson or by the President of the System. 
c) A quorum of the Board of Trustees shall consist of a majority of all the 
members holding office at the time of the meeting of the Board is called. 
SECTION 10. Annual Report. - On or before the first Friday following the 
opening of the regular session of Congress, the Board of Trustees shall submit to the 
President of the Philippines and to Congress a detailed report setting forth the progress, 
conditions and needs of the System. 
SECTION 11. Eke Executive Director ofthe System. - Leadership of the System 
is vested in the Executive Director who shall he appointed by the President of the 
Philippines from among the nominees of the System’s Board of Trustees. 
SECTION 12. Terms and Qualrficntions of the Executive Director. -h The 
Executive Director of the System shall serve for a term of three (3) years without 
prejudice to only one reappointment to the same position. In case of vacancy in the Office 
of the Executive Director of the System before the lapse of the term of the incumbent, the 
person appointed, in accordance with Section 11, to fill the vacancy shall serve only for 
the unexpired portion of the term. The Executive Director shall have the appropriate 
management and financial expertise, and preferably an extensive exposure or experience 
in Hospital Administration of a tertiary level hospital with training/ teaching facilities. 
SECTION 13. Powers of the Executive Director. - The Executive 
a. To exercise general supervision over the day to day operations of the System; 
b. To carry out the policies laid down by the Board of Trustees; 
c. To coordinate the activities of the various component medical units of the 
System; 
d. To prepare an annual report to the Board of Trustees on the work of the past 
year and the needs of the current year. He/she shall also present to the Board of 
Trustees the annual budget of the System with estimates of income and 
expenditures 
e. To execute and sign in behalf of the System all contracts, deeds and other 
instruments necessary for the proper conduct of business of the System; 
f. To exercise such other powers as may be delegated to himlher by the Board of 
Trustees. Director ofthe System shall have the following powers and hnctions: 
SECTION 14. Hospital Djrector. - Each component unit of the . System will 
have a Director appointed by the System’s Board of Trustees for a term of six (6) years. 
The Director shall be the Executive Director of the component unit and shall administer, 
direct and coordinate all activities of the hospital to carry out its objectives in the 
provision of health care, hrtherance of education and research, and participation in 
community health programs. The Hospital Director shall have an extensive experience 
and training in Hospital Administration and proven managerial capability in running a 
tertiary level hospital (preferably with training facilities). 
SECTION 15. Other Officers. - The Board of Trustees may appoint such other 
officers as may be necessary for the operation of the System. 


TITLE I1 1 
FISCAL AUTONOMY AND ACCOUNTABILN 
SECTION 16. Fzscal Aufonony. - 
a. All income, receipts and fees accruing to or derived by the System for its 
operation shall, upon their collection, be automatically released to the System. 
b. All appropriations for government assistance to the System under the annual 
appropriations law and any supplemental or deficiency appropriations shall be 
paid in lump sum. The System shall submit a program of expenditures for the 
approval of Congress. 
SECTION 17. Auditing - All accounts and expenses of the System 
shall be audited by the Commission on Audit. 
TITLE N 
MISCELLANEOUS PROVISIONS 
SECTION 18. Property ofthe Systeni. - The property of the System shall consist 
of such real and personal property, now owned or reserved for, or may hereafter be given, 
donated, acquired, transferred or conveyed to the System by the Philippine Government, 
its branches and instrumentalities, any foreign government, as well as by trusts, . 
foundations, corporations, as persons, alien or domestic, in order to cany out its purposes 
and objectives as set forth herein. 
SECTION 19. Budgefavy Estimate. - Such sum as may be necessary for the 
implementation of this Act is hereby authorized to be appropriated out of any funds in the 
National Treasury not otherwise appropriated. Thereafter, the amount needed for the 
operation and maintenance of the System shall be included in the Annual Appropriations 
Act. 
SECTION 20. Repealing Clause. - Any provisions of law or rules and regulations 
or any part thereof, inconsistent with the provisions of this Act is hereby repealed, 
amended or modified accordingly. 
SECTION 21. Separability Clause. - If any separable provision of this Act be 
declared unconstitutional, the remaining provision shall continue to be in force. 
SECTION 22. Eflectivzty. - This Act shall take effect fifteen (15) days after 
publication in the Oficial Gazette or in two (2) newspapers of national circulation. 
Approved.