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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _________ 
Introduced by Representative Richard I. Gomez 
EXPLANATORY NOTE 
Health is one of the most important foundations of societies. It determines the welfare of a 
state’s most important asset and stakeholder— its constituents, the people. Without health, there 
is no one to enjoy the fruits of success and there is no one to undertake what it takes to succeed. It 
is therefore, at the very base, of all assumptions, plans and directions of government at any level.  
Health problems occur at all economic levels of society. Diseases do not favor the rich nor 
the poor. Yet at present, an individual’s chances of recovering from a serious illness, is largely 
dependent on his or her ability to afford the required treatment. The City of Ormoc and the 
municipalities of the Fourth District of Leyte, are no different. There are no publicly-owned 
advanced and specialized hospitals that cater especially to lung diseases. 
This bill seeks the establishment of such a facility, to be known as the Ormoc City Lung 
Center. This hospital will provide accessible and affordable diagnosis, treatment and rehabilitation 
for residents of the Fourth District of Leyte, its surrounding municipalities and the entire Province 
of Leyte, for that matter. It is envisioned to be a center that is equipped with modern equipment 
and facilities, housed in a building that reflects the advanced level of health services it provides. 
 Moreover, establishing an advanced center, such as this, comes with economic and 
educational externalities, as well. This center will encourage the increased development of the 
medical supplies industry, as well as tourism, retail and food industries. The Ormoc City Lung 
Center would also provide an advanced learning venue for medical students in the City of Ormoc. 
August 31, 2022
9:46 am
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In view of the foregoing, the approval of this bill is earnestly sought. 
RICHARD I. GOMEZ, DPA 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _________________ 
______________________________________________________________________________ 
Introduced by Representative Richard I. Gomez 
AN ACT ESTABLISHING THE ORMOC CITY LUNG CENTER AND 
APPROPRIATING FUNDS THEREFOR  
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the “Ormoc City Lung Center Act.” 
SEC 2. Declaration of Policy. — Section 15, Article II of the 1987 Constitution declares 
that “the State shall protect and promote the right to health of the people and instill health 
consciousness among them.” Furthermore, Section 11, Article XIII also provides that “the State 
shall adopt an integrated and comprehensive approach to health development which shall endeavor 
to make essential goods, health, and other social services available to all the people at affordable 
cost. There shall be priority for the needs of the underprivileged, sick, elderly, disabled, women, 
and children.” Therefore, the establishment of a modern, advanced health facility that would 
specifically cater to lung diseases is well within the mandate of the State for all citizens, including 
those residing in the City of Ormoc and the municipalities of the Fourth District of Leyte.  
SEC. 3. Establishment of the Ormoc City Lung Center. - There is hereby established the 
Ormoc City Lung Center, hereinafter referred to as the Lung Center, which will be a government 
facility that will offer comprehensive care for patients with lung disorders, including diagnosing 
and treating complex lung problems. This facility will also provide a strong teaching program 
and research capability to serve the Filipino people through extensive research on related cases 
and illnesses. The Lung Center shall be located in Ormoc City, Leyte. The Lung Center shall 
have the attribute of perpetual succession and shall be vested with the powers of a corporation 
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and shall continue to exist until dissolved for a lawful cause and/or by joint resolution of 
Congress.  
SEC. 4. Purposes and Objectives. - The Lung Center shall have the following purposes 
and objectives: 
a) Establish and operate a lung rehabilitation, treatment of transplant center for the 
public welfare;  
b) Offer comprehensive care for patients with lung diseases; 
c) Conduct training and research on the prevention and treatment of blood and lung 
diseases, as well as information campaigns on regeneration and transplant services 
through conventions, seminars, and conferences; 
d) Establish an efficient lung diseases laboratory including a molecular laboratory; 
e) Establish a lung transplant program and donor registry; 
f) Recruit and retain cases for voluntary lung donors;  
g) Collect lung organs from qualified voluntary donors;  
h) Process whole lung into lung components; 
i) Collect lung components; 
j) Store issue, transport, and distribute whole lung to end-user hospitals and other 
health facilities; 
k) Ensure safe supply of lung and their products to all hospitals and other health 
facilities through adequate distribution and delivery;  
l) Implement and monitor quality assurance to selected regional lung centers; 
m) Test lung infections; and 
n) Provide special and confirmatory tests and perform lung examinations. 
SEC. 5. Powers and Functions. - The Lung Center shall have the following powers and 
functions:  
a) Adopt a code of by-laws to implement this Section; 
b) Adopt and use a corporate seal which shall be a matter of judicial notice; 
c) Determine its organizational structure and the number of salaries of its officers 
and employees in accordance with the provision of Republic Act No. 10149, 
otherwise known as the Government-Owned and Controlled-Corporation 
(GOCC) Governance Act of 2011; 
d) Establish and maintain professional and technical educational systems for the 
sustained development of the necessary manpower to manage and operate its 
affairs and business; 


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e) Invest its funds as it may deem proper and necessary, but subject to applicable 
lease, rules and regulations, in any activity related to the Center, including in any 
bonds or securities and guaranteed by the Government of the Philippines; 
f) Acquire assets, real or personal, interest therein and encumber or otherwise 
dispose the same as it may deem proper and necessary in the conduct of its 
business; 
g) Borrow money from local or foreign resources as may be necessary for its 
operations, subject to applicable laws, rules and regulations;  
h) Accept any gifts, contributions, endowments, grants, bequests, and devices of any 
kind of real or personal property which are necessary and proper for the attainment 
of the purpose of the hospitals; and 
i) Perform such acts and exercise such functions as may be necessary and proper for 
the attainment of the purposes and objectives herein specified;  
SEC. 6. Board of Trustees. - The affairs and business of the Lung Center shall be 
directed, its properties managed and its corporate powers exercised, unless otherwise provided 
in this Act, by its own Board of Trustees which shall be composed of eight (8) members, as 
follows; 
a) The Secretary of the Department of Health as Chairman of the Board or his duly 
authorized representative; 
b) The Undersecretary/ Assistant Secretary of the Department of Health;  
c) The officer-in-charge of the Provincial Health Office;  
d) One (1) member from the private sector, preferably with experience in finance, 
administration or management; 
e) One (1) representative who will provide expertise in lung diseases; 
f) One (1) representative who will provide expertise in lung transplant;  
g) One (1) representative from a non-government organization that is concerned with 
the health sector; and 
h) The Lung Center Executive Director.  
The term of office, manner of appointment of the trustees, and other matters pertaining to the 
governance of the Lung Center shall be determined in accordance with the pertinent provisions 
of R.A. No. 10149. 
The Board of Trustees shall be governed by a set of by-laws, which shall contain, among others, 
an enumeration of each of the members’ responsibilities, accountabilities, and cause of 
termination.  
SEC. 7. Powers and Functions of the Board. - The Board of Trustees which shall be the 
policy-making body of the Lung Center shall have the following powers and functions:  


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a) Determine the general policies of the Lung Center within the scope of its powers, 
objectives and financial resources; 
b) Establish the organizational structure of the Lung Center, define the duties and 
responsibilities of all officials and employees and adopt a compensation and 
benefit scheme, subject to the pertinent provisions of R.A. No. 10149; 
c) Acquire, hold, and own, in any manner, property of whatever nature or 
description, concerning the center, and to dispose of such property under mode of 
encumbrance or conveyance;  
d) Enter into, make, perform, and carry out contracts of every kind and for any lawful 
purpose with any person, firm association or corporation, whether public or 
private, domestic or foreign, for the interest of the center; 
e) Mortgage, lease, sell, transfer, convey or otherwise dispose of its properties;  
f) Solicit and receive donations, endowments and funds in the form of contributions, 
whether in cash or in kind, from both public and private sectors and from domestic 
or foreign sources, for the benefit of the center;  
g) Open such accounts in banks and other financial institutions, and to disburse such 
funds or invest the same as the Board of Trustees may direct to accomplish or 
advance the purposes or interest of the Lung Center;  
h) Invite foreign or local health specialist and similar experts in the various medical 
fields to train the personnel, trainees, fellows or residents of the Lung Center; 
i) Send the personnel of the Lung Center to research institutes, medical institutes, or 
universities for advance training or observation and to attend international or 
regional conventions, conferences, congresses or seminars as the Board of 
Trustees may deem necessary to accomplish the purposes and objectives of the 
Lung Center;  
j) Enter into such agreements and arrangements with other medical or similar 
institutions, domestic or foreign, as may be deemed desirable by the Board of 
Trustees promoting the purposes and objectives of the Lung Center; 
k) Adopt a set of by-laws, rules, regulations, policies, guidelines, and procedures 
consistent with law and provisions hereof to govern the administration and 
operation of the hospital; and 
l) Do all such other acts and things as are or may be necessary for or incidental to 
the accomplishment of the purposes and objectives of the Lung Center. 
SEC. 8. Duties and Responsibilities of the Executive Director. - The Lung Center shall be 
headed by the Executive Director who shall have the following duties and responsibilities: 
a) Prepare the agenda for the meetings of the board, and to submit for consideration 
of the board such policies and measures as they believe necessary to carry out the 
purposes and objectives of this Act; 


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b) Execute, administer, and implement the policies and measures approved by the 
board; 
c) Exercise such other powers and perform such other duties provided in the by-laws 
and as vested to them by the board. 
SEC. 9. Program for Indigents. - The Department of Health (DOH)  shall ensure that the 
Lung Center shall adopt and enforce a program for indigents needing lung products and patients 
with lung diseases in accordance with the implementing guidelines on classification of patients 
on Availment of Medical Social Services in Government Hospitals. 
SEC. 10. Retention of Income. - The Lung Center is hereby authorized to retain and utilize 
their income derived from its operation and non-patient related activities for the maintenance of 
the other operating expenditures, including capital outlay especially in the acquisition of 
equipment and supplies, subject to  auditing rules and regulations. Further, no amount from such 
income shall be used to augment the salaries and other compensation of the Lung Center 
personnel beyond the amounts determined by the Governance Commission for Government-
Owned and Controlled Corporations (GOCC), as provided for in R.A. No. 10149. 
The Department of Health (DOH), in coordination with the Department of Budget and 
Management (DBM) shall issue the necessary rules and regulations to implement this provision.  
SEC. 11. Exemption from Taxes. - The Lung Center shall be exempt from the payment of 
taxes on all contributions thereto and all accruals on its income and investment earnings.  
Any donation, contribution, bequest, subsidy or financial aid which may be made to it shall 
constitute allowable deduction from the income of the donor for the income tax purposes and 
shall be exempt from donor’s tax, subject to such conditions as provided in the National Internal 
Revenue Code of 1997, as amended.  
The Lung Center shall be exempt from all other taxes, whether direct or indirect on its 
income, properties, and operations.  
SEC. 12. Contracts. - The Lung Center shall have the authority to enter into contracts with 
any person or entity, domestic or foreign, and with government for the undertaking of the varied 
aspects of the Lung Center, including the acquisition, by way of purchase, lease, rent or other 
deferred payment arrangements of equipment and/or raw materials and supplies, as well as for 
services connected therewith under such terms and conditions as it may deem proper and 
reasonable.  


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In the acquisition and disposal of property real or personal, a bidding process shall be 
necessary to confirm to the requirements of public bidding as provided for in R.A. 9184, 
otherwise known as the Government Procurement Reform Act, and related laws.  
SEC. 13. Supervision. - The Lung Center shall be under the direct supervision of the DOH 
for purposes of policy direction and control. It shall submit an annual report, pursuant to the 
pertinent provisions of R.A. No. 10149.   
SEC. 14. Implementing Rules and Regulations. - Within thirty (30) days from the completion 
of the appointment of its members, the Board of Trustees shall convene to formulate the rules 
and regulations necessary for the implementation of this Act.  
Sec. 15. Appropriations. - The amount of three hundred million pesos (Php 300,000,000) is 
hereby appropriated for the initial operation and maintenance of the Lung Center. Continued 
appropriations shall be included in the annual General Appropriations Act until project 
completion.  
Sec. 16. Separability Clause. - If any provision of this Act is held invalid or unconstitutional, 
the other provisions not so declared shall remain in force and in effect. 
Sec. 17. Repealing Clause. - Any other law, issuance or part thereof inconsistent with this 
Act are hereby repealed or modified accordingly.  
Sec. 18. Effectivity Clause. - This Act shall take fifteen (15) days after its publication in the 
Official Gazette or in two (2) newspapers of general circulation.  
 
 
Approved,