Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRI
First Regular Session

‘as, 8859

House Bill No.

Introduced by HONORABLE SCOTT DAVIES S. LANETE, M.D.

EXPLANATORY NOTE

During the advent of the 1987 Constitution, the State saw decentralization as a solution to the
inability of the government to implement an efficient system of providing basic services to
the people. It devolved the delivery of basic services to the local government units who were
deemed most effective in assessing the needs of the people and more efficient in delivering
services. Decentralization brought the government closer (o the people.

However, decentralization has not been fully and effectively implemented. In the field of
health, local government units have been given the control and supervision over government
hospitals, But despite this, most of the hospitals that specifically cater to certain ailments and
patients are still found in Metro Manila, the capital of the Philippines. Among the specialized
hospitals are the Lung Center of the Philippines, National Kidney and Transplant Institute,
Philippine Children’s Medical Center, and the Philippine Heart Center.

AL present, there are no hospitals with these specializations situated in Visayas and
Mindanao. Most of the hospitals found in these areas, although efficient in terms of curing
ordinary illnesses, are not equipped with the proper medical staff and equipment necessary
for treating patients with special needs. In effect, people with said illnesses still need to travel
to Metro Manila for treatment. Sadly, because of the distance and additional costs of
travelling, most Filipinos do not make it to these specialized hospitals in time for treatment.

‘This bill aims to bring the government even closer fo the people. It seeks to establish in
Visayas and Mindanao satellite hospitals which are under the control and supervision of
specialized hospitals like the Lung Center of the Philippines, National Kidney and Transplant
Institute, Philippine Children’s Medical Center, and the Philippine Heart Center. With these
satellite hospitals readily accessible in Visayas and Mindanao, our brothers and sisters living
in far-flung areas need not travel to Metro Manila for treatment, Consequently, their lives will
become more convenient

Hence, the passage of this law is urgently sought

SCOTT DAVIES
epresentative
‘Third District, Province of Masbate

S. LANETE, M.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

No BOOD

House Bill No.

~~ Introduced by HONORABLE SCOTT DAVIES

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 “Satellite Hos

Is Act.”

See. 2. Declaration of Policy. Wis the policy of the State to protect and promote the right to
health of the people.

Sec. 3. Establishment of Satellite Hospitals ~ There shall be established Visayas Specialized
Satellite Hospital in Cebu City and Mindanao Specialized Satellite Hospital in Davao City

‘These hospitals shall be composed of different departments, each one under the control and
supervision of the Lung Center of the Philippines, National Kidney and Transplant Institute,
Philippine Children’s Medical Center, and the Philippine Heart Center.

These satellite hospitals shall be a non-profit public institution and their purpose being
primarily to give free in-patient and outpatient medical care to as many residents of Visayas
and Mindanao as possible, Their objectives shall be:

(a) To provide people in Visayas and Mindanao specialized medical care at no cost to them
where warranted;

(b) To give these people easy access to hospital facilities and hospital care, especially the
poor and indigent among them;

(©) To provide them with better facilities for domiciliary health and medical servi

S

Sec. 4, Hospital Board ~ To carry out the purpose and objectives enumerated in Section two
and three of this Act, there is hereby created the governing board of the Visayas Specialized
Satellite Hospital and Mindanao Specialized Satellite Hospital, respectively, which shall
hereafter be known as the Hospital Board

The hospital board shall be composed of ten members with the Secretary of the Department
of Health as ex-officio chairman, four members, each one of whom coming the Lung Center
of the Philippines, National Kidney and Transplant Institute, Philippine Children’s Medical



Center, and the Philippine Heart Center and five members coming from the private sector.

‘The members of the Hospital Board shall be appointed by the President of the Philippines and
shall receive no salary. They shall, however, receive a per diem of not exceeding Two
‘Thousand pesos for every meeting of the Board actually attended: provided, however, that the
total amount of per diem for all the meetings of the Board in a single month shall not exceed
‘Ten Thousand

Members of the Hospital Board who are not officers of the Government shall serve for a term
of four years renewable for another term only

The Board Secretary shall be appointed by the Chairman from the ranking members of the
hospital staff

Sec. 5. Powers and Duties of the Hospital Board. — Subject to existing laws, the Hospital
Board, as the governing and policy-making body of the hospital, shall haye such powers as
are necessary to carry out the purpose and objectives enumerated in this Act, including the
exercise of corporate powers, It shall perform the following functions and duties

(a) To promulgate and prescribe the rules and regulations for the administration of the
affairs of the hospital

(b) To study, propose and approve plans for the improvement of the services of the hospital.

(©) To propose, study and approve or, amend or revise the organizational structure of the
hospital, both medical and administrative, in order to meet the exigencies of the service,
subject to existing laws and regulations on the matter and consonant with the principles of
sound hospital administration.

() Yo consider and approve appointments and promotions of all staff personnel, medical
and administrative, and other employees upon the recommendation of the Hospital Director.

(e)_ To investigate all cases of anomalies, negligence or misconduct of all hospital personnel
including the Hospital Director. It shall have the final authority to pass upon the removal
separation, and suspension of such personnel subject to the Civil Service Rules and
Regulations,

(f) To make an internal audit once a year of the business operation of the hospital

(g) To receive in trust, legacies, gifts, land grants and donations of real and personal
property of all kinds, tax free, and to administer the same for the benefit of the hospital or a
department of service thereof. Foreign and domestic donors of legacies, gifls, grants and
donations under this section shall be exempt from any tax of whatever kind and nature to the
extent of the full amount donated, provisions of existing laws to the contrary notwithstanding

(h) To consider
submission to the.

and approve the budget prepared by the hospital administration for
‘ongress of the Philippines through the Budget Commissioner.

See. 6, Meeting of the Board; Quorum, — The Hospital Board shall meet regularly once a
month at the Visayas Specialized Satellite Hospital and Mindanao Specialized Satellite
Hospital, respectively, on a regular date fixed for the purpose, Special meetings may be
called as often as necessary, subject to paragraph two of Section five hereof. A majority of
the members shall constitute a quorum, All decisions of the Board must be by a majority of


the members present,

ec. 7. The Hospital Director; Auditor. — There shall be a Hospital Director, elected by a
majority vote of the Hospital Board: provided, that the recommendee is qualified under the
Civil Service Laws and Rules,

The Hospital Director shall serve until otherwise incapacitated or removed for cause and shall
receive an annual salary equivalent to that of Chief of Hospital IV under the Salary Plan of
the Wage and Position Classification Office. He shall have charge of the hospital and shall
have the powers in respect to the hospital as are vested by law in chiefs of hospitals.

Specifically, the Hospital Director shall

(a) Be responsible for the implementation of all policies, decisions and orders of the
Hospital Board;

(b) Have immediate supervision and control over the affairs of the hospital as well as its
management and administration, subject to the authority of the Hospital Board;

(©) Subject to the approval of the Hospital Board, prepare plans for a hospital residency
program in the fields of medicine, surgery, pediatrics, obstetrics and gynecology, eye-ear-
nose and throat, laboratory, radiology, and training program in nursing and allied fields;

(d) Prepare and submit to the Hospital Board periodic reports on the state of affairs
financial conditions, budgetary requirements and other problems of the hospital together with
the corresponding recommendations thereon: and

(e) Perform such other duties as the Hospital Board may from time to time direct him to do
consonant with the dignity and responsibility of the office

‘The Hospital Board shall appoint an auditor who shall be the representative of the Auditor
General who is hereby designated as ex-officio auditor of the Visayas Specialized Satellite
Hospital and Mindanao Specialized Satellite Hospital, respectively

‘The auditor shall be the chief of its auditing and accounting department, He shall audit,
examine and settle all accounts of the Visayas Specialized Satellite Hospital and Mindanao
Specialized Satellite Hospital, respectively, according to existing laws and regulations and
shall perform such other duties as the Auditor General, Hospital Director or the Hospital
Board may require him, His compensation shall be fixed by the Hospital Board

See. 8, Hospital Organization; Bed Capacity, — The organization of the hospital shall
include such departments and services as the Hospital Board may deem essential to carry on
with the objectives of this Act but shall in no case be contrary to the basic organizational
plans preseribed by the Bureau of Medical Services of the Department of Health nor with the
principles of sound hospital administration,

The hospital shall have a bed capacity of not less than one hundred, ninety per centum of
which shall be devoted exclusively to charity patients. It shall likewise maintain facilities and
wards for emergency cases as well as those for outpatients and domiciliary services

ec. 9. Heads of Departments and Services; Compensations. — The heads of departments
and services as well as medical consultants and specialists shall be appointed by the Hospital
Board upon recommendation of the Hospital Director, Their compensations shall be



prescribed by the Hospital Board but the same shall in no case be less than provided for under
existing laws and regulations,

All other personnel and employees of the hospital shall be appointed by the Hospital Director
subject (0 the approval of the Hospital Board.

See, 10, Hospital Trust Funds, — All funds and money not coming from the general fund
of the National Government such as contributions from taxes and assessments from
authorized sweepstakes lotteries and games, donations, legacies, endowment, income of the
pay wards and other hospital services shall be used and disbursed only upon the authorization
of the Hospital Board for the purpose of improving, the hospital, its facilities and services,
including the purchase of medicines, supplies and equipment.

Sec. 11. Supervision by the Department of Health, — The Visayas Specialized Satellite
Hospital and Mindanao Specialized Satellite Hospital, respectively, shall be under the
supervision of the Department of Health,

ec, 12, Implementing Agency. ~ The Department of Health shall ensure the implementation
and enforcement of this Act

Sec. 13. Jmplementing Rules and Regulations, ‘The Department of Health shall have the
power to promulgate the implementing rules and regulations as may be necessary to fully
implement the objectives and purposes of this Act within one (1) year from the approval
hereof,

See. 14. Separability Clause. If any part or provision of this Act shall be held unconstitutional
or invalid, other provisions which are not affected thereby shall continue to be in full force

and effect,

See. 15. Repealing Clause. All laws, issuances or parts thereof inconsistent with this Act are
hereby repealed or modified accordingly

Sec. 16. Hffectivity, This Act shall take effect fifteen (15) days afler its publication in the
Official Gazette or in at least two (2) newspapers of general circulation

Approved.