Republic of the Philippines
House of Representatives
Quezon City, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

7113

House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
PROHIBITING FURTHER PRIVATIZATION AND CORPORATIZATION OF
PUBLIC HOSPITALS, PUBLIC HEALTH FACILITIES, AND PUBLIC
HEALTH SERVICES, AND PROVIDING PENALTIES
FOR VIOLATIONS THEREOF

EXPLANATORY NOTE

nos still struggle in accessing health services in the country. The
World Health Organization has characterized the health care system of the
Philippines as "fragmented"!. Inequality, inefficiency, and infectivity is seen
in the performance of the health services which affects the poor
significantly.

Private health facilities are only afforded by the minority of the
Filipinos, and aside from being expensive, private facilities tend to have
better quality of care as compared to public facilities.

On the other hand, public facilities require more attention and
improvement due to the lack of medical staff, resources, and facilities. To
compensate for inequality, it is only fair to maintain public health facilities,
and improve it further.

For some Filipinos, it would require at least three (3) months’ worth of
salary just to be able to pay for one hospitalization, and in some cases do
not even get the opportunity to see a doctor due to hospital congestion.
Moreover, in far flung areas of the country, it would take kilometers just to
be able to reach the nearest health care facility.

* Dayrit, Manuel M. 2018. The Philippines Health System Review. Health Systems in Transition Vol. 8 No. 2
2018. World Health Organization.


This situation is further aggravated when hospitals refuse to treat a
patient due to their inability to pay, subject patients to unreasonable “user
fees”, or ask patients and their families for collateral “pawnshop style”
payments.

When public hospitals are privatized, the orientation of providing
health care changes from public service and human right to income and
profit. It is vital to make public healthcare more accessible and available to
everyone.

This bill seeks to prohibit the further privatization and corporatization
of public health hospitals, public health facilities, and public health
services, and upholds the health and well-being of the people as a human

right.
In view of the foregoing, the immediate passage of this bill is earnestly

sought.

‘RED Vi ‘AS


Republic of the Philippines
House of Representatines
Quezon City, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7413

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
PROHIBITING FURTHER PRIVATIZATION AND CORPORATIZATION OF
PUBLIC HOSPITALS, PUBLIC HEALTH FACILITIES, AND PUBLIC
HEALTH SERVICES, AND PROVIDING PENALTIES
FOR VIOLATIONS THEREOF

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

SECTION 1. Short Title. - This Act shall be known as the “Anti-
Privatization of Public Hospitals, Health Facilities, and Health Services Act”.

SECTION 2. Declaration of Policy. — It is the policy of the State to ensure
the protection and promotion of the right to health of the people and to
instill health consciousness among them. Further, the State shall endeavor
to make essential goods, health, and other services available to all people at
affordable cost.

SECTION 3. Definition of Terms. - As used in this Act:

(a) Indigent/ Service / Poor patients refer to those who have no source
of income, or whose family income are below the mandated
minimum daily wage and/or below the minimum monthly cost of
living as set by appropriate government agencies;

(b) Privatization refers to the process in which nongovernment actors
become increasingly involved in the financing and the provision of
health care services which include: outright sale; public-private
partnership; corporatization; contracting out of equipment; joint


venture; franchising; management control and corporatization;
leasing; and user charges;

(c) Public hospitals refer to all Department of Health (DOH)- retained
and national hospitals, provincial and regional hospitals under the
local government, including specialty hospitals with separate
legislative charters like the Philippine Heart Center, the National
Kidney and Transplant Institute, the Lung Center of the Philippines
and the Philippine Children’s Medical Center;

(d) Public health facilities refer to health centers; lying-in clinics, and
barangay health stations under the national or local government;
and

(e) Public health services refer to all diagnostic, laboratory, medical,
surgical, and health-related services provided by public hospitals
and public health facilities to indigent, service or poor patients.

SECTION 4. Prohibition of Privatization of Public Hospitals, Public
Health Facilities, and Public Health Services. - No public hospital,
public health facility, and public health services shall be privatized.
Likewise, under no circumstance shall the Secretary of Health or any
person, whether natural or juridical, initiate, cause, and approve the
privatization of any public hospital, public health facility or public health
services

This prohibition against privatization shall cover specialty hospitals which
separate legislative charters like the Philippine Heart Center, the National
Kidney and Transplant Institute, the Lung Center of the Philippines and the
Philippine Children’s Medical Center.

SECTION 5. Bed Allotment of Indigent/ Service/ Poor Patients in Public
Hospitals. - At least ninety percent (90%) of the total bed capacity of all
public hospitals shall be allotted for indigent/service/ poor patients,
pursuant to Republic Act No. 1939, otherwise known as “An Act Prescribing
the Appropriate Share of the National, Provincial City and Municipal
Governments in the Financial Contributions for the Operation and
Maintenance of Free Beds in Government Hospitals and/or the Establishment
of Additional Wards or Hospitals in the Philippines.”

SECTION 6. Liability and Accountability. — Any person whether natural
or juridical who initiates, causes, and approves the privatization of any
public hospital, public health facility or public health services shall be
considered in violation of this Act.


SECTION 7. Penalties. - Any person who violates any provision of this Act
shall be penalized accordingly:

(a) First offense- A fine of not less than One hundred Thousand Pesos
(Php 100,000.00) but not more than Two hundred thousand pesos
(Php 200,000.00) and suspension of one (1) to two (2) years from
public office;

(b) Second Offense- A fine of not less than Two hundred thousand
Pesos (Php200,00.00) but not more than Five hundred thousand
Pesos (Php 500,000.00) and temporary disqualification form
holding any public office for not less than three (3) years but not
more than six (6) years; and

(c) Third Offense- A fine of not less than Five Hundred thousand Pesos
(Php 500,000.00) but not more than Eight hundred thousand
Pesos (Php 800,000.00) and removal from public office and
perpetual disqualification from holding any public office and
perpetual disqualification from holding any public position or
office;

SECTION 8. Implementing Rules and Regulations. - The Secretary of the
Department of Health shall promulgate the rules and regulations necessary
to implement the provisions of this Act within ninety (90) days from its
effectivity.

SECTION 9. Separability Clause. - If any provision of this Act is declared
invalid or unconstitutional, the other provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SECTION 10. Repealing Clause. - All laws, orders, decrees, rules and
regulations and other issuances or parts thereof which are inconsistent with
the provisions of this Act are hereby repealed or modified accordingly.

SECTION 11. Effectivity. — This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in any newspaper of general
circulation

Approved,