c 
, 
1S* Congress of the Republic 
First Regular Session 
) 
of the Philippines 
"ATE 
Introduced by Seneztor A 
Q. Pirnentel, Ju. 
EXPLANATORY NOTE, 
The constitution under Art. 11, Section 15 thereof: provides that the State 
protect and promote the right of health of the peapIe and Instill health 
conciousness among them. 
As a partner in promoting people's health, the government must provide 
assistance to private hospitals to ensure their viability and high 
Seventy percent (70%) of the country's hospitals are privately o 
Distributed to the different areas of the country, these institutions provide the 
much needed medical services and facilities that government hospitals cannot 
alone provide thereby filling a void in the people's health needs. 
This legislation proposes a Private Hospital Development Plan, which will 
be drawn in coordination with the Secretary of Health, appropriate government 
agencies and non-government organizations. This plan shall monitor the needs of 
private hospitals in terms of its facilities, equipment and human resources. It shall 
also grant tax incentives to accredited private hospitals. 
This bill likewisd proposes the creation of a Special Private Hospital Fund 
that will be sourced from real property taxes paid by private hospitals. The money 
collected shall be used to finance the improvement af private hospital facilities and 
to assist community-based projects in various localities. This fund shall be 
managed and disbursed by the local health board in each municipality or chartered 
city with private hospitals. 
Through this bill, we hope to build a bridge of cooperation between the 
government and private hospitals. It shall provge the needed link between the 
public's ever growing health care needs and the advanced medical services 
afforded by private hospitals to help build a healthy nation. 
The immediate passage of 


13& Congress of the Republic 
) 
”04 jUN 38 MI :f10 
of h e  PhiIippines 
1 
First Regular Session 
1 
SENATE 
Introduced by Senator Aquili~o Q. Pimatel, jr. 
ANACT 
ESTABLISHING A PRIVATE-HOSPITAL DEVELOPMENT PLAN AND 
PROVIDING ASSISTANCE TO PRIVATE HOSPITALS BY GRANTING 
THEMINCENTIVES 
SECTION 1. Title. - Tkis Act shall be h o w  as the “Private Hospital 
Assistance Act of 2004.” 
SEC. 2. Dechration of Policy. - It is the policy of the State to provide 
assistance to private kospitds to emwe their viability and enable them to continue 
giving qudity service to the people. Towards this endJ a private hospital 
development plan skd be promulgated m d  the private hospital fund established. 
I. PRIVATE HOSPITAL DEVELOPMENT PLAN 
SEC. 3. The Private Hospital Dmelopent Phn. - The !&cretary of HealthJ 
in consultation with the appropriate government agencies, the Philippine Hospital 
Association mcl other non-govmmt or@zatiom8 shall haw up a Private 
Hospital Development Plan that skdk 
1. Assess the prevailing situation in a certain locality and identify needs in 
terms of facilities, equipment mcl hmm resouxesJ provide incentives forJ m d  


establish agreements m d  lidsages with private hospitals and chits to answer 
these needs; 
2. Identify unserved or underserved areas in tams of swondq m d  
tertiary care where private hospitaIs can be established and, in collaboration with 
other government agencies, provide proper incentives for the same; 
3. Promulgate d e s  m d  regulations m p h g  the n m k ,  composition 
md other matters relating to the creation of the Private Hospital Board as provided 
for in Section 5 of this Act; 
4. IIstablishhg guidelines for better c~ordinati~n 
md cooperation between 
government and private hospitals system in the country so as to provide better 
quality medical services to more people needing medical attention. 
11. CREATION OF THE PRIVATE HOSPITAL FUND AND BOARD 
SEC. 4. Private Hospital Fund. - All proceeds from the payment of real 
property taxes of private hospitals shall acme to a special Private Hospital Fund 
which shall 
following purposes: 
hospital faciIities to accommodate more service ward 
patients; and 
b) Financial assistance to comunity-based health projects in the locality. 
SBC. 5. The Private Hospital Fund Board. - The private hospital fund shall 
be managed and disbursed by a local Board which shd be constituted in each 
municipality or chartered city with private hospitals, md shall be composed of 
a) The Mayor of the municipality or chartered city as Chairperson; 
b) A director from every private hospital in the municipality or city; 
c) The municipal or city health officer; 
d) Two (2) representatives of the private sector or non-govmmtal 
organizations. 


I 
I 
! 
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The members of 
this Board shall be chosen in accordance with 
~ 
bpIementing rules md regdations to ?x issued by the Secretary of Health. The 
Private Hospital Board shall adopt its own rules md regulations, which shall 
~ 
~ bnabIe it to finance the activities, provided for in Section 4 of this Act. 
SBC, 6. Audit of the Private Hospital €urd. - The disbursement of the 
Private Hospital Fund shall be subject to audit by the Commission on Audit. 
SBC. 7. Rqewfittg Chwe. - Any provision of Iaw, d e s  and regulations 
inconsistent with this Act is hereby repealed or modified accordingly. 
SBC. 8. Eflectivity. - This Act shall take effect fifteen (15) days from its 
publication in the Oflcial Gixefte or in two (2) national newspapers of general 
circulation.