Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

1s" CONGRESS
First Regular Session

HOUSEBILLNO. 463

Introduced by REP. SALVADOR H. ESCUDERO III

EXPLANATORY NOTE

Problem on devolved health care system persist to this day, despite the mechanism
established by the national and local government units.

Among the problems identified were: the non-implementation of the Magna Carta for
Health Workers: delays and even non-payment of their salaries and benefits; and the
diminution of funds intended for the delivery of health services thereby caus
fragmentation.

g its

This Bill aims to address the flaws and issues raised against the decentralization of
health services. In order to have a comprehensive and integrated health care delivery system
as mandated by the Constitution of the Republic of the Philippines, RE-
NATIONALIZATION OF HEALTH SERVICES is the only solution.

Hence, the immediate approval of this urgent measure is eamestly requested.

W

sa(MADOR H. ESCUDERO III
Representative
1* District, Sorsogon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

1s" CONGRESS
First Regular Session

HOUSEBILLNO. 463

Introduced by REP. SALVADOR H. ESCUDERO II

AN ACT
REVERTING TO THE NATIONAL GOVERNMENT THE DISCHARGE OF BASIC
HEALTH SERVICES DEVOLVED TO LOCAL GOVERNMENT UNITS (LGUs)
AND AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7160, OTHERWISE
KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991

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

SECTION I. Title — This Act shall be known as the “Renationalization of Devolved
Health Services and Facilities Act

SEC. 2. Declaration of Policy — It is the declared policy of the State that it shall
protect and promote the right to health of the people and instill health consciousness among
them. Further, the State shall endeavor to make essential goods, health and other services
available to all the people at affordable cost.

SEC. 3. Objectives — The objectives of this Act are: a) to prevent the further
deterioration of government health services and facilities brought about by devolution; b) to
provide essential health services to the people, especially the sick, the poor and marginalized
sector of society; c) to improve and uplift the morale, social and economic well-being of
devolved health workers; and, d) to develop a professional health manpower that is
responsive to the people’s health needs and problems.

SEC. 4. Re-nationalization ~ All health services and facilities devolved to the local
government units are hereby re-nationalized or retuned to the national government. For this
purpose, the following provision of the Local government Code or RA7160, are hereby
deleted and declared no longer enforceable and effective: Section 17 (b) paragraph (1) (ii),
paragraphs (3) (iv, and (4) for health services only: Section 102 (1), (2), (3), (b) (1), (2), and
(3): Section 103) (a) and (b); Section 1 Section105 and other related provisions of the
Local Government code that pertains to devolved health services and facilities.



SEC. 5. Authority to Use Income - Re-nationalized hospitals and Rural Health
Units/Centers are hereby authorized to use their income derived from their operation to
improve and upgrade their services: Provided, That the supporting financial and work plans
are first approved by the Secretary of Health.

SEC. 6. Appropriation — In the year following the enactment of this Act into law, the
cost of the devolved health services and facilities as of December 31, 1992 shall be deducted
by the Department of Budget and Management from the Internal Revenue Allotment of the
Local Government Units and shall be used as funding source to implement the provision of
this Act. Any deficiency shall be charged against the Organizational Adjustment fund and
appropriations saving/reserves. Thereafter, such sums as may be needed for its continued
implementation shall be included in the Annual General Appropriations Act.

‘The Internal Revenue Allotment of Local Government Units in the succeeding years
shall be net of the cost of devolved health services and facilities as of December 31, 1992.

SEC. 7. Implementing Rules and Regulations - The Department of Health shall
formulate the Implementing Rules and Regulations within three (3) months after the
enactment of this law.

SEC. 8. Repealing Clause — All laws, presidential decr
and regulations, or parts thereof, inconsistent with the prov’
repealed or modified accordingly.

executive orders, and rules
ns of this Act are hereby

SEC. 9. Separability Clause — If, for any reason, any section or provision of this Act
is held unconstitutional or invalid, the other sections or provisions thereof shall not be
effected thereby.

SEC. 10. Effectivi

This Act shall take effect immediately upon its approval

Approved,