FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 3221

EXPLANATORY NOTE

As part of the government's effort to reform the health sector, privatization
of government hospitals has been endorsed ostensibly due to the rising cost of
maintenance and operational expenses. One argument in favor of privatization is
that it will allow investors to infuse additional capital to modernize and upgrade the
facilities and equipment of these government hospitals, more particularly the
specialized hospitals such as the Philippine Heart Center and the National Kidney
and Transplant Institute.

While it is true that the government is experiencing difficulty in infusing the
much-needed funds to continually upgrade and acquire sophisticated and
advanced medical equipment, it is a reality that majority of the people rely on
these government hospitals for their medical and health needs.

It is almost certain that corresponding increase in medical costs will ensue
‘once the privatization of government hospitals is pursued. Some people cannot
even afford adequate shelter, food, clothing, and education. Worst, accessible
and affordable health care services will be beyond their reach.

The Constitution mandates that health services shall be available to all
people at affordable cost. It is in this light that this measure seeks to prohibit the

privatization of government hospitals to ensure and guarantee that health care
services are affordable and accessible to all Filipino people.

The early passage of this proposed measure is highly recommended.

RUFUS B. RODRIGUEZ

MAXIMO Vien JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

21

House Bill No.

AN ACT
PROHIBITING THE PRIVATIZATION OF GOVERNMENT HOSPITALS

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

SECTION 1. Short Title. - This Act shall be known as the “Government
Hospitals’ Privatization Prohibition Act’.

SEC 2. Declaration of Policy. — It is hereby declared the policy of the State
to guarantee that health care services are available, accessible and affordable to
all the people by prohibiting the privatization of government hospitals.

SEC 3. Definition of Terms. — For purposes of this Act, the term:

(a) “Secretary” shall refer to the Secretary of the Department of
Health; and,
(b) “Government Hospital” shall refer to a hospital operated and

maintained either partially or wholly by the national, provincial,
municipal, or city government or other political subdivision, or by
any department, division, board or other agency thereof.

SEC 4. Prohibition on privatization of goverment hospitals. - The
Secretary is hereby prohibited to privatize, sell, or offer for sale all government
hospitals.


SEC 5. Implementing Rules and Regulations. - The Secretary shall
promulgate the necessary rules and regulations to implement the provisions of this
Act.

SEC 6. Appropriations. - In order to achieve the objectives of this Act, such
amount as may be necessary is hereby authorized to be appropriated from the
National Treasury. Thereafter, the amount necessary for the continuous operation
of the hospitals shall be included in the annual appropriations of the Department of
Health.

SEC 7. Separability Clause. - Any portion or provision of this Act that may
be declared unconstitutional or invalid shall not have the effect of nullifying other
portions and provisions hereof as long as such remaining portion or provision can
still subsist and be given effect in their entirety.

SEC 8. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with the provisions of this Act is hereby repealed,
modified or amended accordingly

SEC 9. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved.