Republic of the Philippines
House of Representatives
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseBi||No.   5044
aegcEIVED
I"tATEEp   2   1 2022
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Introduced by Representative Albert S. Garcia
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EXPLANATORY NOTE
The  Philippine  General  Hospital  (PGH)  is  one of the tertiary state owned  government
hospitals in our country.  It is considered as the biggest hospital with a  1,500-bed capacity.  It is
a  mixed-use hospital, with  1,000  beds for indigent patients and 500 beds for private patients,
and  offers  some  of the  lowest  rates  for  patients  and  is  generally  known  as  the  hospital  for
indigent patients. On an average year, about 600,000 patients pass through its hospital's halls,
98% of which are indigents,
lt continues to achieve its noble mission of providing health care through the subsidy it
receives  from   the   Distribution   Acceleration   Plan   (DAP)  funds   that  the   University  of  the
Philippines (UP) system received and the earnings from its pay patient departments,  incomes
from the laboratory procedures and pharmacy sales and donations from different organizations
among others.
Nevertheless,   such   funds   are   insufficient  to   finance   all   its   essential   services.   In
conformity of such policies of the State to provide and ensure basic social service to its people,
this  bill  seeks  to  fulfill  the  same  by  considering  Philippine  General  Hospital  or  PGH  as  the
national  university  hospital  of the  Philippines.  Through  this  measure,  enough  funding  will  be
received by the hospital. Consequently, it can now finance all its essential services. Health care
would  be  more accessible and  affordable to the  people especially to the  paupers and  Sickly
patients.
In lieu of the foregoing, immediate passage of this bill is earnestly sought,


Republic of the Philippines
House of Representatives
Quezon City
NINETEENTH CONGRESS
First Regular Session
HouseBi|;No.     5044
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Introduced by Representative Albert S. Garcia
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1                AN ACT TO STRENGTHEN PHILIPPINE GENERAL HOSPITAL OR PGH  BY
2                     DECLARING IT AS THE NATIONAL UNIVERSITY HOSPITAL OF THE
3                  PHILIPPINES, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
4                                                                            PURPOSES.
S        Be it enacted bythe senate and House of Representatives of the philippines in
6       Congressassembled:
7       SECTION 1. ShortTitle. ThisActshall be known asthe "PGH ACT."
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9       SEC  2.  Declaration  of  Policy.  The  PGH  is  hereby  declared  to  be  the  National
10       University  Hospital  of the  Philippines.  The  State  shall  ensure,  promote,  protect  and
11        nurture the fundamental right of the people to health, quality and affordable health care
12       and services.
13        ln  pursuit of this end,  it is the  policy of the state to strengthen the  philippine General
14        Hospital or PGH as the national university hospital.
15       SEC 3. Purpose(s) of the Hospital. As the national university hospital, it shall provide
16       an  accessible,  affordable,  and  quality  health  care  to  the  poor  and  underprivileged
17        patients.The pGHshall:
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1.   Provide the people with an accessible, quality, and affordable hospital care and
medical services.
2.   Serve  as  the  laboratory  hospital  of  health  science  students  enrolled  in  the
University of the Philippines.
3.   Serve as  research  university  hospital  in  the field  of medicine  and  other health
care expertise and specialization responsive to the country's health needs and
problems.
4.   Provide  and  encourage  training  of physicians,  nurses,  medical  technologists,
health  officers,  social  workers,  and  other health  professionals on  the  practical
and scientific conduct and implementation of health services,
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1       SEC 4.  Commitment to  National  Development. -The  national  university hospital
2       shall  harness the expertise of the  members of its community and  other individuals to
3       regularly study the state of the nation  in  relation to its quest for national  development
4       in  health  care  identify  key  concerns,  formulate  responsive  policies  regarding  these
5       concerns, and give advice and recommendations to congress and the president of the
6        Philippines.
7       The congress of the Republic of the philippines, the  Department of Health and other
8       government agencies and instrumentalities may request the national university hospital
9       to conduct research or provide advice on any matter involving health care and services.
10       The budget for such research or request for advice shall come from the appropriation
11        ofthesepublicagencies.
12       SEC  5.  Institutional Autonomy as the  National  University  Hospital.  -Taking  into
13        account  national  goals  and  priorities,  it  shall  exclusively  determine  its  administration
14       and or management of the hospital, research plans, policies, programs and standards,
15        and,   on   the   basis   of   such   determination,   the   national   university   hospital   shall
16       recommend  its annual  budget to the  president of the  Republic of the  philippines and
17       Congress.
18       SEC  6.  Board  of  Regents.  -The  powers  and  functions  of the  hospital  shall  be
19       exercised  by the  Board  of Regents which shall  be composed  of six (6)  members as
20        follows:
21                 1.    Composition:
22                    a.   The secretary of the Department of Health as chairperson.
23                     b.   The   Regional   Director  of  the   Department  of  Health   Center  for   Health
24                            Development.
25                    c.   The chairperson of the senate committee on Health.
26                    d.   The chairperson of the House committee on Health.
27                     e.   The president of the university of the philippines
28                    f.    The operations cluster/Undersecretary of Department of Health.
29              2.   Vacancy -In case of vacancy in the Board such vacancy shall be made in the
30                    same manner as provided for the predecessor,  and such appointee shall  hold
31                      office for the unexpired portion of the term.
32              3.   Compensation -Members of the Board shall serve without compensation other
33                    than reimbursement for actual and necessary expenses incurred in attendance
34                     to meetings of the Board or other official business authorized by the Board.
35              4.   Meetings; Quorum -The Board shall convene regularly. The chairperson of the
36                     Board may call a special meeting whenever necessary: Provided, That members
37                      are  notified   in  writing  at  least  ten   (10)  working   days  prior  to  the  meeting:
38                     Provided, further, That the notice shall contain a brief description of the agenda
39                     items to be discussed.
40      A majority of all members of the Board  holding office at the time the meeting  is called
41       shall constitute a quorum for Board meetings.  In no case shall any and all members of
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1       the  Board  appoint representatives  to  act on  their behalf:  Provided,  that the  ex-officio
2      members  of  the  Board  coming  from  Congress  may  participate  and  vote  through
3       teleconferencing or equivalent, verifiable means of communication.
4       SEC  7.  Powers  and  Duties  of the  Board  of Regents  - The  administration  of the
5       national  university hospital and the exercise of its corporate powers are vested in the
6       Boardof Regents.
7       The Board shall exercise the following specific powers and duties:
8              (a) To define in general terms the thrusts of PGH and adopt broad policy guidelines
9              to ensure their implementation;
10              (b) To preserve the integrity of the national university hospital;
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(c) To receive and appropriate all sums as may be provided by law for the support
of the national university hospital to the ends specified by laws and all other sums
jn  the  manner  it  may,  in  its  discretion.  determine  to  carry  out  the  purposes  and
functions of
(d) To authorize the construction, maintenance or repair of its buildings, machinery,
equipment  and   other  facilities,   and   the   purchase  and   acquisition   of  real   and
personal properties, including necessary supplies,  materials and equipment;
(e) To receive in trust legacies, gifts and donations of real and personal property of
all kinds and to administer and dispose the same when necessary for the benefit of
the hospital and subject to the instructions of the donor, if any;
(f)  To  borrow  money from  local  or foreign  sources  as  may  be  necessary  for  its
operations, subject to applicable rules, laws, and regulations.
(g) Notwithstanding any provision of law to the contrary, to authorize its doctor/s and
staff to travel abroad to study, deliver papers, attend conferences and disseminate
research  Provided,  That  the  fellowship,  scholarship  or grant  is  authorized  by the
Board  Provided,  finally,  That  research  and  other activities funded  by the  national
university  hospital  shall  likewise  undertake  research  in  fields  or topics  that  have
national   interest  applications,   and  that  the  doctor/s  and   staff  involved   in  said
research be allowed to participate in its financial or economic benefits;
(h) To exercise the general powers set out in the Corporation Code;
(i)  To delegate any of its powers to the Chairperson of the hospital or other officials
or officers as it may deem necessary;
0)  To prescribe rules for its own government and the discipline of doctors and other
personnel and to enact for the government of the national university such general
policies,   rules  and   regulations,   not  contrary  to  law,   as  are  consistent  with   its
purposes; and
(k)To  exercise  such  functions  and  execute  such  acts  as  may  be  proper  and
necessary to carry out the objectives specified in this Act.
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40      SEC. 8. The secretary of the Board of Regents. -There shall be a secretaryofthe
41        national university hospital appointed by the Board, who shall also be the secretary of
42       the Board, and who shall keep such  records of the hospital as may be designated by
43       the Board.
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1       SEC. 9. Management of Funds. -There shall be an independenttrust committee to
2       be  composed  of  the  Secretary  of  Department  of  Health,  as  Chairperson,  one  (1)
3       representative  each  nominated  by the  Bankers Association  of the  philippines  (BAP),
4       the   Investment  Houses  Association   of  the   Philippines   (lHAP),   the  Trust  Officers
5       Association  of  the  Philippines  (TOA")  and  the   Financial   Executive  Institute  of  the
6       Philippines  (FINEX).  The  members  shall  be  entitled  to  a  reasonable  per diem  as the
7       Board mayspecify.
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9       The independenttrustcommittee shall recommend tothe Board five (5) universal banks
10       selected on a prudent basis which trust departments shall manage the corporate and
11        other  funds  through  trust  agreements  of  the  national  university  hospital  on  a  non-
12       directed basis: Provided that any such agreement shall be for a period of not more than
13       two(2)years.
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15       The independent trust committee shall provide the Board with direction on appropriate
16       investment  objectives  and  permissible  investments  with  the  view  to  preserving  the
17       value of the funds while allowing the national  university hospital to earn a reasonable
18        return thereon.
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20       SEC.10.  Tax  Exemptions.  -    The  provisions  of any  general  or  special  law  to  the
21        contrary notwithstanding:
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a)  All  revenues  and  assets  of  the  national  university  hospital  used  for  medical
purposes or in support thereof shall be exempt from all taxes and duties;
b)   Gifts and donations of real and personal properties of all kinds shall be exempt
from the donor's tax and the same shall be considered as allowable deductions
from  the  gross  income  of the  donor,  in  accordance with  the  provisions  of the
National   Internal   Revenue  Code  of  1997,   as  amended:   Provided,  that  the
allowable  deductions  shall  be  equivalent  to  150  percent  of the  value  of such
donation.  Valuation  of  assistance  other  than  money  shall  be  based  on  the
acquisition cost of the property. Such valuation shall take into consideration the
depreciated value of property in case said property has been used;
c)   Importation  of scientific and  medical  bocks,  supplies,  materials and  equipment
duly certified by the Board, shall be exempt from customs duties;
d)  The  hospital  shall  only pay 0%  value-added tax for all transactions subject to
this tax; and
36       SEC.  11.  Reportorial  Requirements  and  Auditing  of  Accounts.  -The  national
37       university  hospital  shall submit an  annual  report to  congress  containing the financial
38       statements,  statement of assets  and  liabilities,  actual  projected  income.  All  accounts
39       and   disbursements   of   the   national   university   hospital   shall   be   audited   by   the
40       Commission on Audit.
41       SEC.12. Rules of construction. -No statutory or other issuances shall diminish the
42       powers,  rights,  privileges  and  benefits  accorded  to  the  national  university'  hospital
43       underthis Act orenjoyed at present by it under other issuances not otherwise modified
44       or repealed  under this Act,  unless subsequent legislation  expressly provides for their
45       repeal, amendment or modification. Any case of doubt in the interpretation of any of the
46       provisions  of  this  Charter  shall  be  resolved  in  favor  of  the  fiscal  autonomy  of  the
47        National  university Hospital.
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1       SEC.13. Appropriations. -The amount needed to carry outthe implementation of this
2       Act shall be charged against the lump sum appropriation of the currentfiscal year and
3       other  internal  funds  of  the  national  university  hospital.  Thereafter,  such  lump  sum
4       representing  the  responsibility  of the  national  government  for the  continued  growth,
5       operation  and  maintenance  of the  hospital  shall  be  included  in  the  annual  General
6       Appropriations Act (CAA).
7       The national university hospital may use unexpended balances in any appropriation for
8       purposes thatthe Board determines.
9       ln addition to the regularappropriations and increases forthe hospital underthe annual
10       GAA,  a centennial fund  shall  be appropriated  in the amount of three  (3) billion which
11        shall likewise be included  in the annual GAA. Should any provision herein be declared
12       unconstitutional, the same shall not affectthe validity of the other provisions of this Act.
13       SEC.    14.    Separability    Clause.    -   Should    any    provision    herein    be    declared
14       unconstitutional, the same shall not affect the validity of the other provisions of this Act.
15       SEC.15. Repealing clause. -All laws, acts, executive orders, administrative orders,
16       rules,  regulations,  inconsistent  herewith  are  hereby  repealed,  amended,  or  modified
17        accordingly.
18       SEC,16. Effectivity. -This Act shall take effect fifteen (15) days after its publication in
19       the official Gazette or in any newspaper ofgeneral circulation.
20       Approved,
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