NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session          `                  )
RECEIVED
CT    0  3  20
TIM,E;Lngng
Introduced b  =.e_ r::e.n::t.i,:e REu`fu.sn=.-Rodri uez   tr+<` gee {
EXPLANATORY NOTE
Section  15, Article  11 (Dec/arafi'on of Pry.nci.p/es and State Po/t.c/.es/ of the Constitution
prow.:ftes that."The State shall protect and promote the right to health of the people and instill
health consciousness among them."
This  bill  seeks to establish  a special  health fund for the  improvement of health  care
services in the belief that every individual's health is the concern of society.   The uncertainty
which  attends  most  health  problems  further  justifies  the  intervention  of  the  State  in  the
provision of adequate health services to every individual.
It has been more than a decade since the enactment of Republic Act (RA) No. 7160,
otherwise known as the Local Government Code of 1991, which devolved health services to
local government units.   Many problems have  been encountered  in the devolution of health
functions,  however,   because  local  government  units  were  not  prepared  and  lacked  the
necessary resources to exercise the new powers granted them under RA 7160.   Local health
boards were established without the corresponding operating resources which have resulted
in an unbalanced and lopsided delivery of quality health care services.    There is therefore a
need  to  establish  a  special  health  fund  which  will  provide  each  local  government  unit  the
resources necessary to support their local quality health care services.
The  special  health  fund  shall  be  apart  from  the  appropriations  allotted  to  health
services  by the  respective  local  government units and  remittances  by the  Philippine  Health
Insurance  Corporation  to  the  local  health  institutions  and  shall  be  used  exclusively for the
acquisition  of  equipment,   upgrading   of  facilities  and   services,   additional  allowances  for
health workers, training and continuing education of health workers.   The local health boards
are likewise mandated to manage the special health fund.
In  view of the foregoing,  approval  of this  bill  is  highly and  earnestly  recommended.


NINETEENTH CONGRESS                  )
REPUBLIC OF THE PHILIPPINES    )
First Regular session                            )
HOUSE OF REPRESENTATIVES
IHEtroduoed by Representative Rufus a. Rodrigu_e¥
House Bill No.  53 79
AN ACT
ESTABLISHING THE SPECIAL HEALTH  FUND FOR THE  IMPROVEMENT OF  HEALTH
CARE   SERVICES   IN   THE   LOCAL   GOVERNMENT   UNITS   AND   APPROPRIATING
FUNDS THEREFOR.
B_e__it_ _e_nLf_Cf.Pd by the Senate and  House of Representatives of the Philippines in Congress
assembled:
SECTION.  1.   Dec/araf/.on of Po/i.ey. - lt is hereby declared the policy of the State
to guarantee that total quality health care  is available to the  people at affordable costs  by
providing  additional  resources  to  local  government  units  for  the  health  needs  of  their
respective  constituencies.    It  is  also the  policy of the  State to  see to  it that all  citizens  be
afforded optimum health care services and make the local governments accountable for the
development and improvement of health services in their respective localities.
SEC. 2.             Spec/`a/ Hea/th Fund. -There is hereby established a special Health
Fund which shall be used exclusively for the following:
a)           Upgrading  of facilities  and  equipment of local  hospitals,  rural  health  clinics,
lying-in  clinics,  emergency  hospitals,  puericulture  centers,  nursing  homes,  hospices  and
such other health institutions found in cities and municipalities;
b)           Hiring,   training   and   continuing   education   of  health   workers,   caregivers,
volunteer health workers and other ancillary personnel employed by the local governments
in their health  institutions;
c)           Building  of  new  health  institutions  such  as  secondary  hospitals,  specialty
clinics or care centers in cities and municipalities;
d)          Purchase of needed  medicines and  medical  supplies at the  lowest costs in
accordance with law; and
e)          Establishment of mobile emergency lifelines or quick-response  medical and
paramedical   teams   to   respond   to   disasters,   emergencies   and   other   life-threatening
situations in the community.
SEC. 3.             Ro/e of the [oca/ Hea/fh Boards. -ln addition to the functions of
the  Local   Health   Board  as  provided  for  in  Section   102  (b)  of  Republic  Act  No.   7160,
otherwise  known  as  the  Local  Government  Code  of  1991,  the  Local  Health  Board  shall
manage  the  local  special  health  fund,  which  shall  be  remitted  to  them  by  the  agencies
mentioned  in  Section  2  of this  Act.    The  special  health  fund  levy  shall  be  automatically
retained  by the  local  health  board  as well  as the  proceeds from  fines due to violations  of
health and safety laws collected by the local government units.
sources:EC. 4.             Funding--The  special  Health  Fund  shall  come from  the following
a)           Proceeds  from  a  special  levy  of  1%  from  all  sales  in  all  local  public  and
private  markets  which  shall  be  collected  by  the  local  governments  and  allocated  by  the
health boards;
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b)            Proceeds from fines collected for violations of health and safety regulations
from all establishments in cities and municipalities;
c)          5%   of  revenues   derived   by  the   Philippine   Charity  Sweepstakes   Office
(PCSO) from lotto which shall be divided equally among all cities and municipalities;
d)          5°/o   of   the   net   revenues   of   the   Philippine   Amusement   and   Gaming
Corporation (PAGCOR) which shall be allotted equally among all cities and municipalities;
e)          Grants   or  donations   and   endowments   to   cities   and   municipalities  from
private  and  foreign   individuals,   as  well   as,   local   and   international,   private  and   public
associations or foundations.
SEC. 5...      _    Imp!en?enti_ng  Rules  and  Regulations. -The Secretary  Of  Health
shall,   in  coordination  with  the  Secretary  of  Interior  and   Local   Government,   issue  the
necessary rules and regulations for the effective implementation of this Act.
SEC. 6.             Repea//.ng c/ause. -All laws, decrees, orders, rules and regulations
or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 7.              Effect/.y/.fy. -This Act shall take effect fifteen (15) days following  its
publication in at least two (2) newspapers of general circulation.
Approved,
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