Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
AN ACT 
PROHIBITING THE PRIVATIZATION OF GOVERNMENT HOSPITALS 
EXPLANATORY NOTE 
Over the past years, we have seen various moves to privatize specialized and regular 
government hospitals, which I believe will be detrimental to the Filipino people. Thus, 
the proposal of this bill seeks to prohibit the privatization of existing government 
hospitals. 
With the maintenance and operating costs of running a hospital continuously 
increasing, some individuals and groups think that privatizing such institutions would 
be the best solution. The government will no longer need to fund these hospitals and 
upgrading and modernizing of facilities will be assured.  
But at what cost? Once privatized, treatment in these hospitals will come at a hefty 
price. The poorest of the poor would no longer be able to access these hospitals for 
they will not be able to afford the cost of treatment. 
These hospitals should remain under the charge of the government so that equal 
access to quality health care will be assured. As the Philippine Constitution mandates, 
health services shall be available to all people at an affordable cost. The Philippine 
government should find ways in which to modernize and improve these hospitals 
without resorting to its privatization.   
On behalf of the people of Parañaque City’s Second District, and for the common good 
of the Filipino people, the approval of the said measure is earnestly sought. 
REP. GUS S. TAMBUNTING 
2nd District, Parañaque City 
September 16, 2022
1:08 pm
4910


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by HON. GUS S. TAMBUNTING 
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 "Anti-Privatization of Public 
Hospitals, Health Facilities, and Health Services Act". 
SECTION 2. Declaration of Policy. – It is the policy of the State to ensure the 
protection and promotion of the right to health of the people and to instill health 
consciousness among them. Further, the State shall endeavor to make essential 
goods, health, and other services available to all people at an affordable cost. 
SECTION 3. Definition of Terms. – As used in this Act: 
(a) Indigent / Service / Poor patients refer to those who have no source of income,
or whose family income is below the mandated minimum daily wage and/or
below the minimum monthly cost of living as set by appropriate government
agencies;
(b) Privatization refers to the process in which nongovernment actors become
increasingly involved in the financing and the provision of health care services
which include: outright sale; public-private partnership; corporatization;
contracting out of equipment; joint venture; franchising; management control
and corporatization; leasing; and user charges;
(c) Public hospitals refer to all Department of Health (DOH)- retained and national
hospitals, provincial and regional hospitals under the local government,
including specialty hospitals with separate legislative charters like the Philippine
Heart Center, the National Kidney and Transplant Institute, the Lung Center of
the Philippines and the Philippine Children's Medical Center;
(d) Public health facilities refer to health centers, lying-in clinics, and barangay
health stations under the national or local government; and
4910


(e) Public health services refer to all diagnostic, laboratory, medical, surgical, and 
health-related services provided by public hospitals and public health facilities 
to indigent, service, or poor patients.  
 
SECTION 4. Prohibition on Privatization of Government Hospitals. – No public 
hospital, public health facility, and public health services shall be privatized. Likewise, 
under no circumstance shall the Secretary of Health or any person, whether natural or 
juridical, initiate, cause, and approve the privatization of any public hospital, public 
health facility, or public health services.  
 
This prohibition against privatization shall cover specialty hospitals with separate 
legislative charters like the Philippine Heart Center, the National Kidney and 
Transplant Institute, the Lung Center of the Philippines, and the Philippine Children's 
Medical Center. 
 
SECTION 5. Bed Allotment for Indigent/ Service/ Poor Patients in Public 
Hospitals. – At least ninety percent (90%) of the total bed capacity of all public 
hospitals shall be allotted for indigent/service/ poor patients, under Republic Act No. 
1939, otherwise known as "An Act Prescribing the Appropriate Share of the National, 
Provincial, City and Municipal Governments in the Financial Contributions for the 
Operation and Maintenance of Free Beds in Government Hospitals and/or the 
Establishment of Additional Wards or Hospitals in the Philippines".  
 
SECTION 6. Liability and Accountability. – Any person, whether natural or juridical, 
who initiates, causes, and approves the privatization of any public hospital, public 
health facility, or public health services shall be considered in violation of this Act.  
 
SECTION 7. Penalties. – Any person who violates any provision of this Act shall be 
penalized accordingly: 
 
(a) First Offense - A fine of not less than One hundred thousand pesos 
(P100,000.00) but not more than Two hundred thousand pesos (P200,000.00) 
and suspension of one (1) to two (2) years from public office;  
 
(b) Second Offense - A fine of not less than Two hundred thousand pesos 
(P200,000.00) but not more than Five hundred thousand pesos (P500,000.00) 
and temporary disqualification from holding any public office for not less than 
three (3) years but not more than six (6) years; and  
 
(c) Third Offense - A fine of not less than Five hundred thousand pesos 
(P500,000.00) but not more than Eight hundred thousand pesos (P800,000.00) 
and removal from public office and perpetual disqualification from holding any 
public position or office. 
 
 
SECTION 8. Implementing Rules and Regulations. – The Secretary of the 
Department of Health shall promulgate the rules and regulations necessary to 
implement the provisions of this Act within ninety (90) days from its effectivity. 
 


SECTION 9. Separability Clause. – [f any provision of this Act is declared invalid or 
unconstitutional, the other provisions hereof which are not affected thereby shall 
continue to be in full force and effect. 
 
SECTION 10. Repealing Clause. – All laws, orders, decrees, rules and regulations, 
and other issuances or parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed or modified accordingly. 
 
SECTION 11. Effectivity. – This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or any newspaper of general circulation. 
 
Approved,