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Republic of the Philippines MS oy oN
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Quezon City DATE:

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 4603

Introduced by REP. DOY C. LEACHON

EXPLANATORY NOTE

The Philippines is a signatory to a number of United Nations treaties including
but not limited to The Universal Declaration of Human Rights (UDHR) and International
Covenant on Economic, Social and Cultural Rights (ICESCR) where the right to health is
expressly recognized (Article 25 and Article 12, respectively). These provisions are also
enshrined in the 1987 Constitution specifically Sec. 15, Article II where it states that,
“The State shall protect and promote the right to health of the people and instill health
consciousness among them. Further, Sec.11, Article XIII on Social Justice and Human
Rights 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. The State shall endeavor to provide free medical care to paupers.”

To achieve this end, the government has had established several state owned
hospitals to cater the needs of the community especially for the underprivileged
patients. In the status quo, there are approximately 1,800 hospitals in the Philippines,
of which 721 (40%) are public hospitals and 70 are DOH hospitals.

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.

It 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.

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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.

Approved,

ATTY. PAULIN SALVADOR “DOY” C, LEACHON


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 4609

Introduced by REP. DOY C. LEACHON

AN ACT TO STRENGTHEN PHILIPPINE GENERAL HOSPITAL OR PGH BY
DECLARING IT AS THE NATIONAL UNIVERSITY HOSPITAL OF THE
PHILIPPINES, APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES.

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 “PGH ACT of 2016.”

Section 2. Declaration of Policy. -- The PGH is hereby declared to be the National
University Hospital of the Philippines. The State shall ensure, promote, protect and
nurture the fundamental right of the people to health; quality and affordable health
care and services.

In pursuit of this end, it is the policy of the State to strengthen the Philippine General
Hospital or PGH as the national university hospital.

Section 3. Purpose(s) of the Hospital. -- As the national university hospital, it shall
provide an accessible, affordable and quality health care to the poor and
underprivileged patients. The PGH shall:

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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Section 4. Commitment to National Development. -- The national university
hospital shall harness the expertise of the members of its community and other
individuals to regularly study the state of the nation in relation to its quest for national
development in health care identify key concerns, formulate responsive policies
regarding these concerns, and give advice and recommendations to Congress and the
President of the Philippines.

The Congress of the Republic of the Philippines, the Department of Health and
other government agencies and instrumentalities may request the national university
hospital to conduct research or provide advice on any matter involving health care and
services. The budget for such research or request for advice shall come from the
appropriation of these public agencies.

Section 5. Institutional Autonomy as the National University Hospital. -- Taking
into account national goals and priorities, it shall exclusively determine its
administration and or management of the hospital, research plans, policies, programs
and standards, and, on the basis of such determination, the national university hospital
shall recommend its annual budget to the President of the Republic of the Philippines
and Congress.

Section 6. Board of Regents. — The powers and functions of the hospital shall be
exercised by the Board of Regents which shall be composed of six (6) members as
follows:
1. Composition:
a. The Secretary of the Department of Health as Chairperson.
b. The Regional Director of the Department of Health Center for Health
Development.
. The Chairperson of the Senate Committee on Health.
|. The Chairperson of the House Committee on Health.
. The President of the University of the Philippines
The Operations Cluster/Undersecretary of Department of Health.

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2. Vacancy - In case of vacancy in the Board such vacancy shall be made in the
same manner as provided for the predecessor, and such appointee shall hold
office for the unexpired portion of the term.

3. Compensation - Members of the Board shall serve without compensation other
than reimbursement for actual and necessary expenses incurred in attendance to
meetings of the Board or other official business authorized by the Board.

4. Meetings; Quorum - The Board shall convene regularly. The Chairperson of
the Board may call a special meeting whenever necessary: Provided, That
members are notified in writing at least ten (10) working days prior to the

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meeting: Provided, further, That the notice shall contain a brief description of the
agenda items to be discussed.

A majority of all members of the Board holding office at the time the meeting is
called shall constitute a quorum for Board meetings. In no case shall any and all
members of the Board appoint representatives to act on their behalf: Provided, that the
ex-officio members of the Board coming from Congress may participate and vote
through teleconferencing or equivalent, verifiable means of communication.

Section 7: Powers and Duties of the Board of Regents. -- The administration of
the national university hospital and the exercise of its corporate powers are vested in
the Board of Regents.

The Board shall exercise the following specific powers and duties:

(a) To define in general terms the thrusts of PGH and adopt broad policy guidelines to
ensure their implementation;

(b) To preserve the integrity of the national university hospital;

(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 law, and all other sums in the
manner it may, in its discretion, determine to carry out the purposes and functions of
PGH;

(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 personai 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;

(j) 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.

SEC. 8. The Secretary of the Board of Regents. -- There shall be a Secretary of
the national university hospital appointed by the Board, who shall also be the Secretary
of the Board, and who shall keep such records of the hospital as may be designated by
the Board

SEC. 9. Management of Funds. —

(a) There shall be an independent trust committee to be composed of the Secretary of
Department of Health, as Chairperson, one (1) representative each nominated by the
Bankers Association of the Philippines (BAP), the Investment Houses Association of the
Philippines (IHAP), the Trust Officers Association of the Philippines (7OAP) and the
Financial Executive Institute of the Philippines (FINEX). The members shall be entitled
to a reasonable per diem as the Board may specify.

(b) The independent trust committee shall recommend to the Board five (5) universal
banks selected on a prudent basis which trust departments shall manage the corporate
and other funds through trust agreements of the national university hospital on a non
directed basis: Provided that any such agreement shall be for a period of not more than
two (2) years.

(c) The independent trust committee shall provide the Board with direction on
appropriate investment objectives and permissible investments with the view to
preserving the value of the funds while allowing the national university hospital to earn
a reasonable return thereon.

SEC. 10. Tax Exempt
contrary notwithstanding:
(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 books, supplies, materials and equipments 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

ns. -- The provisions of any general or special law to the

SEC. 11. Reportorial Requirements and Auditing of Accounts. -- The national
university hospital shall submit an annual report to Congress containing the financial


statements, statement of assets and liabilities, actual projected income. All accounts
and disbursements of the national university hospital shall be audited by the
Commission on Audit.

SEC, 12. Rules of Construction. -- No statutory or other issuances shall diminish the
powers, rights, privileges and benefits accorded to the national university hospital under
this Act or enjoyed at present by it under other issuances not otherwise modified or
repealed under this Act, unless subsequent legislation expressly provides for their
repeal, amendment or modification. Any case of doubt in the interpretation of any of
the provisions of this Charter shall be resolved in favor of the fiscal autonomy of the
National University Hospital,

SEC. 13. Appropriations. -- The amount needed to carry out the implementation of
this Act shall be charged against the lump sum appropriation of the current fiscal year
and other internal funds of the national university hospital. Thereafter, such lump sum
representing the responsibility of the national government for the continued growth,
operation and maintenance of the hospital shall be included in the annual General
Appropriations Act (GAA).

The national university hospital may use unexpended balances in any appropriation for
purposes that the Board determines.

In addition to the regular appropriations and increases for the hospital under the annual
GAA, a centennial fund shall be appropriated in the amount of three (3) billion which
shall likewise be included in the annual GAA. Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this Act.

SEC. 14. Separability Clause. -- Should any provision herein be declared
unconstitutional, the same shall not affect the validity of the other provisions of this Act.

SEC. 15. Repealing Clause. — All laws, acts, executive orders, administrative orders,
rules, regulations, inconsistent herewith are hereby repealed, amended or modified
accordingly.

SEC. 16. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any newspaper of general circulation.

Approved,