Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 1880

__ INTRODUCED BY REPRESENTATIVE ALFRED VARGAS _

EXPLANATORY NOTE

According to the Department of Health, the leading causes of death of
Filipinos are heart diseases, vascular ailments, pneumonias, malignant cancers, all
forms of tuberculosis, accidents, chronic obstructive pulmonary disease and allied
conditions, diabetes mellitus, nephritis, and other respiratory diseases.

Treating such diseases would need professional medical care. However,
patients and their families oftentimes choose to not immediately avail of these
services as they are unaware of the costs that healthcare entail.

This bill proposes to make available the costs of drugs, treatments, and
services offered by hospitals and ambulatory surgical centers to enable patients
and their families plan their health care and treatment and manage their financial
expectations.

In the thrust of protecting and promoting the right to health of the

Filipino people and instilling health consciousness, the immediate passage of this
bill is earnestly sought.

\LFRED VARGAS,


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL nol 880

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
PROVIDING FOR THE PUBLIC DISCLOSURE OF PRICES OF DRUGS AND
PROCEDURES BY HOSPITALS AND AMBULATORY SURGICAL CENTERS

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

SECTION 1. Short Title. This Act shall be known as the “Hospital Price
Disclosure Act”.

SECTION 2. Declaration of Policy. It is the policy of the State to protect and
promote the right to health of the people and instill health consciousness among
them,

SECTION 3. Definition of Terms. For purposes of this Act, the terms:

A. “Ambulatory Surgical Center” shall refer to a public or private
medical-surgery establishment with an on-site organized
medical staff of physicians and a permanent facility with 16
operating room equipment which does not provide services or
accommodations for patients to stay overnight;

B. “DOH" shall refer to the Department of Health;

C. “Hospital” shall refer to a facility licensed to provide care and
treatment for sick or injured patients, primarily while they are
acutely ill or chronically ill. It must have facilities for diagnostic
treatment and major surgery and maintains permanent and full-
time facilities for the care of overnight resident bed patients
under the supervision of one or more licensed physicians; and

D. “Secretary” shall refer to the Secretary of the Department of
Health.


SECTION 4. Data Reporting by Hospitals and Ambulatory Surgical Centers
and Public Posting -

A. Quarterly Reporting Requirement. - Beginning one (1) year
from the enactment of this law, hospitals shall report to the
Secretary, not later than forty-five (45) days after the end of each
calendar quarter, for each procedure or drug selected under
Subsection (B) of this Section, and ambulatory surgical centers
shall report to the Secretary, for each procedure selected under
Section 5, the following data:

1. The frequency with which the hospital performed the
procedure, or administered the drug in an inpatient
setting, or the center performed the procedure during
such quarter;

2. If the procedure was performed or the drug was so
administered during such quarter, the average and the
median of the price charged by the hospital or center for
such procedure or drug during such quarter;

B. Selection of Procedures and Drugs. ~ Based on national data, the
Secretary shall select the following:

1. The twenty-five (25) most frequently performed hospital
inpatient procedures;

2. The twenty-five (25) most frequently performed hospital
outpatient procedures; and

3. The fifty (50) mist frequently administered drugs in a
hospital inpatient setting,

The Secretary shall periodically update the procedures and
drugs selected.

SECTION 5. Administrative Provisions. -

A. Classification of Procedures. ~ For the purpose of Section 4, the
Secretary shall establish rules for the classification of different
medical procedures and for the assignment of items and services
to these procedures;

B. Computation of Average and Median Prices. - For purposes of
Section 4, the computation of an average and median price for a
procedure or drug shall be in accordance with a methodology
prescribed by the Secretary. Such methodology may provide for
reporting by the hospital or ambulatory surgical center of unit
prices for specific items and service included in a procedure,
including appropriate per diem prices, and a method of



converting such unit prices for a procedure to an average and
median price for such procedure.

C. Form of Report and Notice. - The Secretary shall specify the
electronic form and manner by which a hospital or ambulatory
surgical center shall report data under Section 4 and the form
for posting of notices under Section 5 (B).

SECTION 6. Public Availability of Data. -

A. Public posting of data. ~ The Secretary shall promptly post, on
the official website of the Department of Health the data
reported under Section 4. Such data shall be set forth in a
manner that promotes price comparison among hospitals and
ambulatory surgical centers

B. Notice of availability. - A hospital and ambulatory surgical
center shall prominently post at each admission site of the
hospital or center a notice of the availability of the data reported
under Section 4 on the official public web site of the Department
of Health.

SECTION 7. Penalty. - Any hospital or ambulatory surgical center who fails
to comply with the provisions of this Act shall suffer a fine of not more than Ten
Thousand Pesos (P10,000.00).

SECTION 8. Appropriations. - To carry out the provisions of this Act, such
amount as may be necessary is hereby authorized to be appropriated from the
National Treasury. Thereafter, the amount necessary for the continuous operation
of the Public Disclosure Program shall be included in the annual appropriation of
the DOH

SECTION 9. Separability Clause. - If any provision of this Act is held invalid
or unconstitutional, the same shall not affect,the validity and effectivity of the
other provisions hereof.

SECTION 10. Repealing Clause. - All laws, decrees, orders, and issuances, or
portions thereof, which are inconsistent with the provisions of this Act, are hereby
repealed, amended or modified accordingly.

SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in two (2) newspapers of general
circulation