Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ______ 
INTRODUCED BY REPRESENTATIVE MARLYN B. ALONTE 
_______________________________________________________________________________ 
AN ACT ESTABLISHING SATELLITE SPECIALTY HOSPITALS TO FACILITATE ACCESS TO 
SPECIALIZED MEDICAL CARE IN IDENTIFIED REGIONS OF THE PHILIPPINES AND 
APPROPRIATING FUNDS THEREFOR 
EXPLANATORY NOTE 
According to a 2009 data from the National Statistics Office, included in the top ten causes of 
deaths in the Philippines include diseases of the heart and cerebro-vascular diseases, chronic 
obstructive pulmonary diseases, and those that affect the kidneys.  
Specialty hospitals, namely the Philippine Heart Center (PHC), Lung Center of the Philippines 
(LCP), National Kidney and Transplant Institute (NKTI), and the Philippine Children’s Medical 
Center (PCMC), were established to treat patients suffering from such particular disease or 
condition. However, all these facilities are located in the National Capital Region (NCR); hence, 
patients outside NCR have to travel far and spend for transportation cost and other miscellaneous 
expenses of the patient as well as their companion. If patients from nearby regions of NCR are 
already burdened by this issue, what more for patients in Visayas and Mindanao? 
To address this regional disparities and save more lives, this bill mandates the existing specialty 
hospitals to establish satellite hospitals in provinces which are geographically isolated from their 
region's tertiary care hospital, to be managed and operated by the specialty hospitals pursuant to 
their respective charters.  
In view thereof, the passage of this bill is earnestly sought. 
    REP. MARLYN B. ALONTE 
 Lone District of Binan 
July 11, 2022
2:29 pm
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Republic of the Philippines 
House of Representatives 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. ______ 
INTRODUCED BY REPRESENTATIVE MARLYN B. ALONTE 
AN ACT 
ESTABLISHING SATELLITE SPECIALTY HOSPITALS TO FACILITATE ACCESS TO 
SPECIALIZED MEDICAL CARE IN IDENTIFIED REGIONS OF THE PHILIPPINES AND 
APPROPRIATING FUNDS THEREFOR 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1.  Short Title. – This Act shall be known and cited as the “Satellite Specialty 
Hospitals Act of 2020.”  
SEC. 2. Declaration of Policy. – Section 15, Article II of the 1987 Constitution mandates 
that the State shall protect and promote the right to health of the people and instill health 
consciousness among them. Towards this end, the State shall adopt an integrated and 
comprehensive approach to health development by providing them specialized health services, 
which shall be available and accessible to all the people at affordable cost. 
SEC. 3. Establishment of Satellite Specialty Hospitals or Specialized Units. – The following 
specialty hospitals are mandated to establish satellite hospitals in identified regions to be 
managed and operated pursuant to their respective charters:  
(1) Philippine Heart Center created under Presidential Decree No. 673;
(2) National Kidney and Transplant Institute created under Presidential Decree No. 1832;
(3) Lung Center of the Philippines created under Presidential Decree No. 1823; and
(4) Philippine Children’s Medical Center created under Presidential Decree No. 1631
Provided, That these specialty hospitals must formulate prioritization plans for the purpose 
of implementing this Act, subject to the following considerations:  
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(a) The specialty hospitals shall craft the criteria for the identification and 
development of their satellite hospitals, based on the following: 
(i) The top burden of disease in the region; 
(ii) Legal mandates specified in other laws such as but not limited to the 
Republic Act No. 11215 or the “Integrated Cancer Control Act”,  Republic 
Act No. 11036 or the “Mental Health Act”, and Republic Act No. 9994 or 
the “Expanded Senior Citizens Act”; and 
(iii) Other considerations that the specialty hospitals may deem important for 
the selection process. 
(b) Provinces which are geographically isolated from their region's tertiary care 
hospital shall likewise be given priority for the establishment of satellite specialty 
hospitals within the nearest general hospital, whichever is feasible; 
Nothing in this Act shall be construed as restricting the right of the Department of Health 
(DOH) to establish specialty hospitals or specialized units in DOH hospitals in different regions. 
SEC. 4. Period of Implementation. – The establishment of at least one (1) satellite 
specialty hospital in identified region/s shall be completed over a period of five (5) years: 
Provided, That payments for amortization of outstanding multi-year contract obligations incurred 
under this Act may extend beyond this period. 
SEC. 5. Minimum Standards of Construction. – The Health Facilities and Services 
Regulatory Bureau of the Department of Health shall issue guidelines for the minimum design 
standards of specialty hospitals in accordance with all applicable laws, rules and regulations: 
Provided, That the application for a permit to construct a special hospital shall be accompanied by 
a hospital plan: Provided, Further, That no permit to construct a special hospital can be issued 
without complying with the minimum standards set forth in the guidelines to be issued pursuant 
to this Section. 
SEC. 6. Procurement. – Procurement of medical equipment and supplies to be used by the 
satellite specialty hospitals shall be exempt from the provisions on bidding process required under 
Republic Act No. 9184 or the “Government Procurement Reform Act” and other relevant laws: 
Provided, That the following information and documents related to the procurement shall be 
published in the Government Procurement Policy Board online portal, the website of the procuring 
entity concerned, if available, and at any conspicuous place reserved for this purpose in the 
premises of the procuring entity within seven (7) working days from the date of acceptance of the 


 
 
award: 
(i) 
Project name;  
(ii) Approved budget for contract;  
(iii) Contract period;  
(iv) Name of winning supplier, distributor, manufacturer, contractor or consultant; 
(v) Amount of contract as awarded; 
(vi) Notice of award;  
(vii) Date of award and acceptance;  
(viii) Contract or purchase order; and  
(ix) A certification stating that the procuring entity exerted all efforts to secure the most 
advantageous price to the government based on existing price data of the agency, the 
DTI or other relevant agencies or preliminary market scanning done by the agency 
showing prevailing market prices and practice. 
SEC. 7. Tax exemptions. – All donations, contributions or endowments which may be made 
by entities or persons to the specialty hospitals for the benefit of their satellite hospitals shall be 
exempt from income and gift taxes. The importation of medical equipment to be used by the 
satellite specialty hospitals shall likewise be exempt from import duties, taxes, and other fees. 
SEC. 8. Report to Congress. – Within one hundred twenty (120) days from the effectivity 
of this Act, the executive directors of the specialty hospitals shall present a report to Congress 
detailing the construction plan of said satellite specialty hospitals, which shall include the 
prioritization plan as provided under Section 3 of this Act. 
For this purpose, the Congress shall establish a Joint Congressional Oversight Committee 
composed of five (5) members of each house to be appointed by the Senate President and the 
House Speaker, respectively. This Committee shall determine whether such acts, orders, rules and 
regulations are within the restrictions provided herein. 
SEC. 9. Sunset Review. – As the need arises or within five (5) years after its effectivity, the 
Congressional Oversight Committee shall conduct a sunset review of this Act. The term ‘sunset 
review’ shall mean a systematic evaluation of the accomplishments and impact of this Act for 
purposes of determining remedial legislation. 
SEC. 10. Appropriations. – The amount necessary for the implementation of the provisions 
of this Act shall be taken from the current year’s budget of the specialty hospitals enumerated in 


 
 
Section 3 of this Act. Thereafter, such sums as may be necessary for the continued 
implementation of this Act shall be incorporated in the annual General Appropriations Act.  
SEC. 11. Implementing Rules and Regulations. – The Department of Health, in 
coordination with the specialty hospitals enumerated in Section 3 hereof, shall promulgate the 
rules and regulations implementing the provisions of this Act within sixty (60) days from its 
effectivity. 
SEC. 12. Separability Clause. – If for any reason, any part or provision of this Act is 
declared invalid or unconstitutional, the remaining parts or provisions not affected shall remain in 
full force and effect. 
SEC. 13. Repealing Clause. – All laws, presidential decrees, executive orders, rules and 
regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SEC. 14. Effectivity – This Act shall take effect fifteen (15) days after its publication in the 
Official Gazette or in a newspaper of national circulation. 
Approved,