Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
FIRST REGULAR SESSION

4442

House Bill No.

introduced by Representatives JC Rahman A. Nava and Alfredo D. Marafion Ul

Explanatory Note

This bill seeks to expand and strengthen the regulation of health facilities in the
Philippines through the Bureau of Health Facilities and Services of the Department of
Health in order to ensure the safety and quality of the heath care facilities.

Dramatic changes and improvement in the field of health care during the past
decades have led to the emergence and development of new types of health care
facilities. Presently, we can see new types of health facilities like diagnostic, therapeutic,
and rehabilitative centers unlike before when there were only hospitals and clinics. As a
result, a number of such types of facilities do not anymore qualify under the regulatory
mandate of the Department of Health. There is therefore a need to update the regulation of
this industry.

Aside from regulating the safety and quality of health facilities, the bill also
addresses another important issue in our health care system, the increasing cost of health
services in the country. Health care must be not only be accessible to the people, it must
also be affordable to everyone especially to the lowest income group. Thus, govemment
must put price control to health care servies when there is excessive cost and warranted
by the situation

In view of the foregcing reasons, immediate passage of this measure is earnestly
requested

Hon. JC Rahman A. Nava, MD

Hon. Kiredo D. Maranon Ill


Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS,
FIRST REGULAR SESSION

4442

House Bill No.

Introduced by Representatives JC Rahman A. Nava and Alfredo D. Marafion Ill

AN ACT STRENGTHENING THE REGULATION OF HEALTH FACILITIES AND
SERVICES IN THE PHILIPPINES

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

Section 1. Title. - This Act shalt be known as the Health Facilities and Services
Regulation Act of 2011.

Sec. 2, Definitions. — As used in this Act, the following terms shall mean:

a) Bureau — shall refer to the Bureau of Health Facilities & Services under the
Department of Health

b) Health Facilities — shall refer to institutions and other health related
establishments which provide diagnostic, therapeutic, rehabilitative, and/or other
health care services except medical radiation facilities and hospital pharmacies.

©) License - a formal authorization issued by the Department of Health to an
individual, partnership, corporation or association to operate a hospital and other
health facilities. It is a prerequisite for accreditation of a hospital and other health
facilities by any accrediting body that is recognized by the Department of Health.

d) Licensee - is the person, partnership, association, corporation or private entity
granted a license to operate and maintain a health facility according to an approved
standard set by the Bureau.

e) Secretary ~ shall refer to the Secretary of the Department of Health.
Sec. 3. Regulating Agency. — The Bureau of Health Facilities and Services (BHFS)

shall act as the regulatory agency pertaining to the regulation and licensing of health
facilities and services in the country.


Sec. 4. Staff - The organizational structure of the Bureau of Health Facilities and
Services shall have positions to carry out the purposes of this Act

Sec. 5. Powers and Duties of the Bureau.- The Bureau of Health Facilities and
Services shall have the following powers and duties:

a) To establish and prescribe rules, regulations, standards and specifications in all
cases related to the issued certificate of license of health facilities and other related
facilities and administer and enforce the same.

'b) To inspect and monitor all health facilitates and other related facilitates to ensure
their continued compliance with rules and regulations in accordance with this Act
and to make recommendations to directors or administrators of such heaith facilities
for the correction of deficiencies found during such inspections;

¢) To study and adopt a system of classifying health facilities and other related
facilities in the Philippines;

d) To approve plans for health facilities, government or private, and to issue permits
‘or authority to construct, renovate or expand heaith facilities or related faciltties, in
accordance with the provisions of this Act;

e) To provide consultative and advisory services relative to the establishment and
construction of health facilities or related facilities;

f) To determine, levy, assess and collect the appropriate permit fee, registration fee,
license fee and surcharges pertinent to the operation of such facilities and services
except in cases where charges or rates established by international bodies or
associations of which the Philippines is a participating member or by bodies
tecognized by the Philippine govemment as the proper arbiter of such charges or
ates;

9) To coordinate and call the assistance of any department. office, agency or
instrumentality of the national or local government and other entities concerned with
any aspect involving health facilities for the effective implementation of this Act;

h) To maintain a register of health facilities and other related facilities of issued
licenses to operate indicating the name of the facility, address or location,
classification, name of the director or administrator, ownership, number of
authorized beds and such other pertinent data as may be necessary:

i) To submit yearly reports to the Secretary of Health, and the Chairpersons of the
Committees on Health of both Houses of Congress;

i) To promulgate and implement the rules and regulations goveming the

registration, licensure and operations of health facilities and related facilities and to
periodically review and amend the same, subject to the approval of the Secretary
and in consultation with the sectors concemed: Provided, That such rules and
regulations shall be in accordance with the provisions of this Act: and

k) Perform such other functions as may be prescribed by law.


Sec. 6. Quasi-Judicial Powers. — To carry out its tasks more effectively, the Bureau
shail be vested with the following quasi-judicial powers:

a) To grant a certificate of license for the operation and maintenance of health
facilities and services, and to suspend or revoke the same in accordance with the
provisions of this Act;

b) To investigate, hear and decide administrative cases initiated by the Bureau or
filed by any person against a hospital or health service establishment violating any
provision of this act and its implementing rules and regulations and to impose
appropriate administrative sanctions or penalty provided in this Act;

¢) To promulgate rules goveming the conduct of administrative hearing: Provided,
that in such proceeding, the Bureau shall not be bound by the technical rules of
evidence of the rules of court: Provided. Further, That the latter may be applied in a
suppletory manner,

4) To administer oaths and affirmations, and to issue subpoena and tesificandum
and subpoena duces tecum requiring the attendance and testimony or parties and
witnesses, and/or the production of such books, contracts, correspondence,
records, statement of accounts and other documents as may be material to the
investigation being conducted by the Bureau;

e) To exercise contempt powers and impose appropriate penalties;

1) To cause the prosecution of all cases involving violations of this Act and its
implementing rules and regulations; and

g) To summarily order the closure of health facilities and other related facilities
operating without a license.

Sec. 7. Construction Permit. - All health facilities or related facilities, government
‘or private, to be constructed or which shall undergo renovation or expansion shail have
their plans approved and construction permit issued by the Bureau as defined in this Act.

Sec. 8. Registration and License. - All health facilities or related facilities,
govemment or private, shall be registered and duly issued a license by the Bureau before
it is allowed to operate or be opened to the public.

Sec. 9. Application and Issuance of a Permit to Construct. - Application for a
permit to construct a health facility or other related facility shall be submitted to the Bureau
in a form prescribed by the latter and accompanied by a plan of the facility proposed to be
constructed. The permit to construct issued by the Bureau shall be a condition precedent
for the issuance of a building permit by the official of the municipality or city where the
facility is proposed to be constructed.

Sec. 10, Application for Registration and Issuance of License. — Application for
registration of a heaith facility or other related facility and for the issuance of a license for
its operation and maintenance including medical ancillary services except the pharmacy
and the medical radiation facility shall be filed with the Bureau or its deputized office using
the form prescribed by it: Provided, That the Bureau shall coordinate with the Bureau of
Food and Drugs for the licensing of hospital pharmacies, with the Bureau of Health


Devices and Technology (BHDT) for the licensing of medical radiation facilities using
electricaVelectronic devices, and the Philippine Nuclear Research Institute (PNRI) for the
licensing of medical radiation facilities using radioactive facilities using radioactive
substances. Registration may be made and license issued upon compliance with the rules
and regulations prescribed by the Bureau pursuant to the provisions of this Act.

Sec. 11. Validity and Renewal of License. - The initial license to operate and
maintain a health facility or other related facility shall be valid for a period of two (2) years
from its date of issuance, and shall be renewed regularly, subject to the rules and
regulations of the Bureau

Sec. 12. Inspaction. - The licanse to operate and maintain a health facility or other
related facility shall be issued by the Bureau only after a representative of the licensing
agency has conducted a comprehensive on-site inspection and certified that the applicant
has satisfactorily compiled with requisites prescribed in this Act and its Implementing Rules
and Regulations.

Sec. 13. Suspension and Revocation of License. - The Bureau, after conducting
an administrative hearing, with due notice ta the licensee and with the approval of the
Secretary of Health may suspend or revoke the license to operate and maintain a health
facility or other related facility of any person, partnership, association, corporation or
private entity, for any of the following grounds: (a) violation by the licensee of any provision
of this Act or any other existing !aw: (b) violation of rules and regulations prescribed in the
implementation of this Act; or (c) failure to make necessary corrections or adjustments
required by the Bureau in the improvement or maintenance of facilities and services.

Sec. 14 Hearing, — Any person, association, corporation, or any other private entity
who has been refused a license to operate and maintain a health facility or other related
facility or whose license for such health facility or other related facility has been suspended
or revoked shall be entitled to an administrative hearing to be conducted by the Bureau to
determine the validity of such denial, suspension or revocation of the license: Provided,
That the licensee may resort to the courts, as in other cases provided by law.

Sec. 15. Separate Licenses Required. - Separate licenses shall be required for
health facilities or other related facilities or branches thereof maintained in separate
premises even though they are operated under the same management: Provided,
However, That separate licenses shall not be required for separate buildings in the same
compound: Provided, Further, That permits for construction or alteration of buildings within
the same compound shall also be secured from the Bureau to determine compliance with
standards and requirements herein authorized

Sec. 16. Non-Transferrability of License. - License for the operation of the health
facility or other related facility shall not be transferable. The Bureau shall be notified of any
change in ownership, change of name of the heatth facility or other related facility, and
transfer of location and in the latter case, an application for a new license should be
submitted.

Sec. 17. Regulation of the Price of Health Care Services. - The President of the
Philippines, upon recommendation of the Secretary of Health, shall have the power to
impose the maximum prices over diagnostic, therapeutic, rehabilitative and other health
care services rendered in the facilities.


The power to impose maximum prices over health care services shall be exercised
within such period of time as the situation may warrant as determined by the President. No
court, except the Supreme Court of the Philippines, shall issue any temporary restraining
order or preliminary injunction that will prevent the immediate execution of the exercise of
this power of the President of the Philippines

Sec. 18. Rules and Regulations. - The Secretary of Health, upon recommendation
of the Bureau shail issue rules and regulations to implement the provisions of this Act.

Sec. 19. Penalties. - Any person. partnership, association, or corporation who
establishes, operates, conducts, manages or maintains a health facility or other related
facility within the meaning of this Act without first obtaining a license or violates any
provision of this Act or its Implementing Rules and Regulations shall be liable to a fine of
not less than fifty thousand pesos (P50,000.00) but not to exceed one hundred thousand
pesos (P100,000,00) for the first offense, and not less than one hundred thousand pesos
ot ye hundred pesos (P50, 000,00 fer he second ofense,
million pesos (P1,000,000.00) for the third and each subsequent offense. Each day that
the health facility or other related facility shall operate after the first violation shall be
considered a subsequent offense.

in addition to the penalties specified in the preceding paragraph, the Bureau upon
the approval of the Secretary, may summarily order the closure of any health facility or
other related facility found operating without a license,

Sec, 20, Revenue Utilization. - All payments made to the Bureau pursuant to
Section §(f) shall be utilized by the Bureau for its operation, subject to the rules and
regulations of the Department of Budget and Management and the Commission on Audit.

Sec. 21. Separability Clause. - If any part or provision of this Act shall be held
unconstitutional or invalids, other provisions hereof which are not affected hereby shall
continue to be in full force and effect.

Sec. 22. Repealing Clause. - R.A. No. 4226 otherwise known as the Hospital
Licensure Act is hereby repealed. All other laws, Presidential Decrees, Executive Orders,
Rules and Regulations or parts thereof which are inconsistent with the provisions of this
Act are likewise repealed or modified accordingly.

Sec. 23. Effectivity. - This Act shall take effect immediately upon its approval.

Approved,