Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILLNo,_7581

Introduced by Representatives Stella Luz Quimbo and Mario Vittorio Marifio.

EXPLANATORY NOTE

Global experience from the COVID-19 outbreak shows how important it is to
efficiently and equitably allocate scarce resources for purposes of attaining health objectives,
such as containing the transmission of new and emerging diseases and averting deaths. It has
also underscored the value of properly analyzing and communicating with data in order to.
inform the public, as well as form live-saving policy decisions.

Health economists are trained for this purpose. They apply economic theories and
methods to analyze behavior within health care markets, and study how to allocate resources
in the health care system to achieve optimal outcomes. Research in health economics also
includes evaluating the impact and effectiveness of health-related policies, such as on pricing,
quality, service delivery, financing, public and private investment, use of emerging
technology, among others.

Currently, the Department of Health does not have a unit dedicated to health
economics. To guide regulators in their decision-making, there is a need for a specialized unit
with the capacity to conduct regular data analysis and produce rigorous, policy-oriented
health research.

If a chief health economist existed in government today, this individual can function
as the “data czar” for purposes of managing the COVID-19 pandemic. He or she would be
tasked to analyze the growth trend of the virus and identify cost-effective interventions to
control the spread of the virus. Moreover, he or she would manage data collection to ensure
timeliness and integrity of the data. Finally, he or she would have the responsibility of
providing technical leadership over a group of experts coming from both fields of medicine
and economics.

This bill seeks to address this gap. It provides for the creation of a Health Economics
Unit under the Department of Health, to be headed by the Chief Health Economist. This unit
will be responsible for contributing the economic analyses needed for the proper design and
evaluation of the DOH’s policies and programs. This will enable our government to


continuously build its capacity for evidence-based policy-making, particularly for the health
sector.

This measure is a key step we can take to better equip our government for the fight
against any public health crisis that we may face in the future. It seeks to promote the efficient
development of our health care system, and above all, a healthy Filipino people.

In view of the foregoing, the passage of this bill is earnestly sought.

Lk 4—4—
STELLA LUZ A. QI [BO, PhD MARIO VITTORIO MARINO.

Representative Representative
24 District, Marikina City 5% District, Batangas


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
EIGHTEENTH CONGRESS
Second Regular Session

House BitNo, 7581

Introduced by Representatives Stella Luz Quimbo and Mario Vittorio Marifio

AN ACT CREATING A HEALTH ECONOMICS UNIT UNDER THE DEPARTMENT OF

HEALTH AND APPROPRIATING FUNDS THEREOF

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

SECTION 1. Declaration of Policy. - It is hereby declared the policy of the State to support its
health policy-making with economic principles and analysis, in order to ensure that scarce
resources for health are allocated efficiently and equitably across various types of the
following:

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Health care facilities;
Health care personnel;

Health care services;

Social and income groups; and

Local government units across the country.

SECTION 2. Functions of the Health Economics Unit. - The Health Economics Unit, hereinafter
called the Unit, is hereby created. The Unit shall have the following functions:

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Provide economic analyses needed for the strategic planning, assessment, design,
monitoring, and evaluation of policy and programs of the DOH and other relevant
agencies;

Provide empirical evidence required for policy-making to the relevant units of the
DOH;

Undertake evaluations of cost-effectiveness of DOH programs, and budgetary impact
of drugs, devices, health-system interventions, and other technologies;

Disseminate research findings to relevant units of the DOH, related agencies, and to
stakeholders;

‘Communicate relevant research findings to the general public;

Consult with stakeholders and experts in related fields;

Manage all research funds allotted to the DOH for health policy-making; and

Create and maintain a data bank needed for purposes of carrying out its other
functions.

The Unit shall be established under the Department of Health (DOH). The President may
decide to attach the Unit to another agency when the circumstances so dictate, such as if a
transfer will aid the Unit in achieving its mandate as provided in this Act.


SECTION 3. Creation of the Position of Chief Health Economist. - The authority and responsibility
for the exercise of the mandate of the Unit and for the discharge of its functions shall be vested
in the Chief Health Economist. The Chief Health Economist must hold (i) at least a master’s
degree in Health Economics, or Economics with a specialization in health, (ii) degrees in
Medicine and Health Policy or Public Health, or (iii) the equivalent degree or combination of
degrees, and must have at least ten (10) years of experience in health policy research. The
Chief Health Economist shall have the rank equivalent of undersecretary.

SECTION 4. Limited Practice of Profession. - The Chief Health Economist shall not, during
his/her time in office, hold any other office or employment, nor directly or indirectly practice
any profession except in a teaching capacity. The Chief Health Economist shall strictly avoid
conflict of interest in the conduct of duties.

SECTION 5. Composition of the Health Economics Unit. - The technical staff support for the
Unit would include, but would not be limited to, the following:

Five (5) health economists or economists;

Five (6) data scientists or data analysts;

Two (2) statisticians;

Five (6) technical writers; and

Two (2) communications specialists.

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SECTION 6. Continuing Education. - The DOH shall support continuing education and
training for the Unit and shall allot at least twenty percent (20%) of the Unit's annual budget
for this purpose. This amount shall be allocated for educational activities including, but not
limited to:

Advanced degree studies;
Short-term programs;
Online courses; and
Participation in conferences.

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SECTION 7. Performance-based Incentives for Research Output. - The DOH shall be authorized
to provide incentives, in addition to the standard compensation, for research output generated
if such has achieved international recognition, either through publication in an international
peer-reviewed scientific journal or accepted for paper presentation in an international
conference.

SECTION 8. Data Bank. - The Unit shall maintain a repository of health economics research
and data generated by the Unit and other public and private groups, organizations, and
institutions, primarily to aid the government in its policy-making. The public may have access
to such information upon request, subject to guidelines promulgated by the DOH and
requirements under Republic Act No. 10173, otherwise known as the “Data Privacy Act of
2012” and Executive Order No. 2, S. 2016 on Freedom on Information.

SECTOPM 9. Appropriations. - Upon effectivity of this Act, all funds of the DOH allocated for
health policy research programs, activities, and projects shall be transferred to the Unit. The
additional amount necessary for the initial operation of the Unit and the implementation of
the provisions of this Act shall be drawn from the appropriations of the Department of Health
for the current fiscal year. Subsequently, the funds necessary for the continuous and effective
‘operation of the Unit shall be included in the General Appropriations Act.


SECTION. 10. Separability Clause. - If any provision of this Act is declared unconstitutional or
invalid, the remainder of the provisions thereof not affected shall remain in force and effect.

SECTION 11. Efectivity. - This Act shall take effect fifteen (15) days after its publication in at
least two (2) national newspapers of general circulation.

Approved,