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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2833

Introduced by: HON. EUFRANIO “FRANNY” C. ERIGUEL, M.D.

EXPLANATORY NOTE

This proposed bill seeks to establish the Philippine Blood Disease and Transfusion
Center (Blood Center), which shall offer comprehensive care for patients with blood
disorders and provide transfusion services to the Filipino people.

The Blood Center is envisioned to provide capacity for safe blood and blood
products, augmenting the medical services provided by hospitals and partner agencies. It
Shall also be the lead hospital in the training and teaching of medical and paramedical
professionals regarding blood diseases and transfusion medicine

Further, the Blood Center is also envisioned to provide the Filipino people with the
latest state-of-the-art in the diagnosis, management and treatment of hematologic
disorders. It shall embark on research regarding hematologic disorders, and shall serve as
a referral laboratory center for all hematologic diseases.

Republic Act No. (RA) 7719, or the National Blood Services Act of 1994, and the
consequent strengthening of voluntary blood services nationwide came on the heels of
unprecedented need for blood and biood products secondary to inevitable epidemiologic
shift towards rising incidence of dengue fever and its hemorrhagic forms, the increasing
threat of HIV and other blood bome infections. RA 7719 is aligned with the national goal of
drastically reducing maternal deaths through the assurance of adequate supply of blood

The creation of the Blood Center will complement RA 7719. It will be a government
corporate institution under the direct supervision of the Department of Health for purposes
of policy direction and control

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

HON. EUFRANIO/“FRANNY” C. ERIGUEL, M.D.
2" Dist., La unio}

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2833

HOUSE BILL NO.

Introduced by: Honorable HON. EUFRANIO “FRANNY” C. ERIGUEL, M.D.

AN ACT

ESTABLISHING THE PHILIPPINE BLOOD DISEASE AND TRANSFUSION CENTER,
DEFINING ITS OBJECTIVES, POWERS AND FUNCTIONS, AND APPROPRIATING
FUNDS THEREFOR

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 the “Philippine Blood Disease

and Transfusion Center Act.”

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Section 2. Definition of Terms. — As used in this Act:

Apheresis Facility — refers to a blood service facility where blood collection
procedure is done in which whole blood is removed, a selected component
separated and the remainder returned to the donor.

. Blood — refers to the human blood for transfusion

Blood Center — refers to the Philippine Blood Disease and Transfusion Center
established pursuant to this Act.

Blood Component — refers, but not limited, to whole blood, red cells, granulocytes,
plasma, platelets, cryoprecipitate and cryosupemate prepared in the Blood Center.

. Blood Disease - refers to a blood condition that involves problems with the red blood

cells, white blood cells, platelets, blood vessels, bone marrow, lymph nodes, spleen,
or the proteins involved in bleeding and clotting (hemostasis and thrombosis). Blood
diseases and blood disorders are used interchangeably in this Act

Blood Product — refers to a therapeutic substance derived from whole blood or
plasma,

|. Blood Transfusion — refers to the process of transferring blood or blood-based

products from one person into the circulatory system of another.
Hematology — refers to the branch of medicine that is concemed with the study of
blood, the blood-forming organs and blood diseases.

2


i, Voluntary Blood Donor ~ refers to a donor who gives blood freely and voluntarily
without any form of payment

Section 3. Mandate. — There is hereby established a Philippine Blood Disease and
Transfusion Center, hereinafter referred to as the Blood Center, a government corporate
entity that will offer comprehensive care for patients with blood diseases, including blood
transfusion services, for public welfare. The Blood Center shall also undertake teaching
programs and research activities to successfully accomplish its mandate.

The Blood Center shall be located at the Lung Center of the Philippines (LCP)
Compound, Quezon Avenue, Quezon City.

Section 4, Purposes and Objectives, ~ The Blood Center shall have the following
purposes and objectives:

a,

To construct, establish, operate and maintain a specialty hospital, with at least
two hundred fifty (250) bed capacity, which shall offer comprehensive care for
patients with blood diseases;

To establish and operate a blood transfusion center and a state-of-the-art
hematology laboratory (which should be able to offer more services than a
regular medical center), including a molecular laboratory for public welfare;

To establish and operate a Hematopoietic Stem Cell transplant program and
donor registry;

To collect blood from qualified voluntary blood donors, and process whole blood
into blood components;

To ensure the safety, as well as the adequate supply, of blood and blood
products delivered to hospitals and other health facilities;

To promote, encourage and engage in medical and scientific research on the
prevention and treatment of blood diseases, on the care and/or treatment of
patients with blood diseases, and on the proper operation of blood bank
technology and blood transfusion services to ensure the safety of both blood
donors and donees;

To gather, compile and publish the findings of its medical and scientific
researches,

To conduct studies and develop teaching programs, in collaboration with
universities, hospitals and/or research institutions, on the prevention and
treatment of blood diseases; encourage and grant scholarships for advanced
training and specialization in hematology; and support educational programs of
value to general public health;

To finance, sponsor, hold or participate in congresses, conventions, conferences,
seminars, workshops and training programs on the prevention and treatment of
blood diseases; and

To encourage and assist in the education and training of physicians, nurses,
health officers, social workers and medical and technical personnel in the
practical and scientific implementation of services to patients with blood
diseases.


Section 5. Powers and Functions. - The Blood Center shall have the following
powers and functions:

a. To have the attribute of perpetual succession and shall be vested with the
powers of a corporation;

b. To adopt and use a corporate seal which shall be a matter of judicial notice;

¢. To enter into contracts with any person or entity, whether public or private,
domestic or foreign;

d. To own, possess, and/or acquire assets, real or personal, or any interest therein,
‘and encumber or otherwise dispose the same, under any mode of encumbrance
or conveyance, as it may deem proper and necessary in the conduct of its
business;

e. To invest its excess funds, subject to applicable laws, rules and regulations, in

any activity related to the Blood Center, as well as in any bonds or securities

issued and guaranteed by the Goverment of the Philippines;

To collect reasonable fees from the public for its services;

g. To solicit and accept any gifts, contributions, endowments, grants, bequests and
devices of any kind of real or personal property which are necessary and proper
for the attainment of the purpose of the hospital, and

h. To perform such acts and exercise such functions as may be necessary and
proper for the attainment of the purposes and objectives herein specified.

Section 6. Board of Trustees. The affairs and business of the Blood Center shall be
directed, its properties managed, and its corporate powers exercised, unless otherwise
provided in this Charter, by its own Board of Trustees, which shall be composed of seven (7)
members, as follows:

a. The Secretary of the Department of Health as Chairman of the Board, or his
duly authorized representative;

b. The Department of Health Undersecretary in charge of supervising specialty
hospitals;

©. One (1) member from the private sector, preferably with experience in finance,
administration or management;

d. One (1) representative who is an expert in hematology;

@. One (1) representative who is an expert in blood transfusion;

f. One (1) representative from NGO involved in health advocacy; and

g. The Blood Center Executive Director.

The terms of office, manner of appointment of the trustees and other matters
pertaining to the governance of the Blood Center shall be determined in accordance with
the pertinent provisions of RA 10149,

Section 7. Powers and Functions of the Board. The Board of Trustees, which shall
be the policy-making body of the Blood Center, shall have the following powers and
functions:

‘a. Set the policies and direction to the Blood Center in order to accomplish its
mandate:

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‘Adopt a set of by-laws, rules, regulations, guidelines and procedures consistent
with law and the provisions hereof to govern the administration and operation of
the Blood Center,

Establish the organizational structure of the Blood Center, define the duties and
responsibilities of its officials and employees, and adopt a compensation and
benefit scheme, subject to the pertinent provisions of RA 10149, or known as
the GOCC Governance Act of 2011;

Establish and maintain professional and technical educational systems for the
sustained development of the necessary manpower to manage and operate its
affairs and business;

‘Authorize the expenditures of the Blood Center as may be necessary or proper
for its efficient and effective management, operation and administration;

Send the personnel of the Blood Center to research institutes, medical
institutes or universities for advance training or observation and to attend
international or regional conventions, conferences, congresses or seminars as
the Board of Trustees may deem necessary to accomplish the purposes and
objectives of the Blood Center,

Enter into such agreements and arrangements with other medical or similar
institutions, domestic or foreign, as it may deem desirable toward promoting the
purposes and objectives of the Blood Center,

Appoint, remove, suspend or otherwise discipline the Executive Director and
other officers of the Blood Center occupying executive and senior management
positions; and

Undertake such other acts and things as are or may be necessary for or
incidental to the accomplishment of the purposes and objectives of the Blood
Center.

Section 8. Executive Director of the Blood Center. The Blood Center shall be
headed by the Executive Director, whose rank and emoluments shall be approved by the
Board, taking into account the prevailing practice in other specialty hospitals, and subject to
the pertinent guidelines issued by the Govemance Commission for GOCCs. The Executive
Director shall have the following duties and responsibilities:

a
b.

c

Direct and supervise the operations and administration of the Blood Center;
Execute, administer and implement the policies and measures approved by the
Board;

Prepare the agenda for the meetings of the board, and to submit for
consideration of the Board such policies and measures as he/she believe(s)
necessary to carry out the purposes and objectives of this Act;

Represent the Blood Center in all dealings, i.e. meetings, contracts,
negotiations, etc., with all other offices, agencies and instrumentalities of the
government and with all persons and other entities, domestic or foreign;
‘Appoint, remove, suspend or discipline all other officers and employees of the
Blood Center, the authority of which is not vested with the Board; and

To exercise such other powers and perform such other duties provided in the
by-laws and as vested to him by the Board.


Section 9. Program for Indigents. — The Blood Center shall adopt and enforce a
program for indigents needing blood or blood products, as well as to indigent patients with
blood diseases, in accordance with the implementing guidelines on classification of patients
and on Availment of Medical Social Services in Government Hospitals. The Department of
Health shall ensure that this program for indigents is effectively implemented.

Section 10. Income Retention. — The Blood Center is hereby authorized to retain and
utilize its income derived from its operation for the continuous improvement of its services
and facilities, subject to auditing rules and regulations. No amount from such income,
however, shall be used to augment the salaries and other compensation of the Blood
Center personnel beyond the amounts determined by the Governance Commission for
Government-Owned and Controlled Corporations (GCG), as provided for in RA 10149,

Section 11, Exemption from Taxes. - The Blood Center shall be exempt from the
payment of taxes on all contribution thereto and all accruals on its income and investment
eamings.

Any donation, contribution, bequest, subsidy or financial aid which may be made to it
shall constitute allowable deduction from the income of the donor for income tax purposes
and shall be exempt from donor's tax subject to such conditions as provided in the National
Internal Revenue Code.

The Blood Center shall be exempt from all other taxes, whether direct or indirect, on
its income, properties and operations.

Section 12. Supervision. - The Blood Center shall be under the direct supervision of
the Department of Health for purposes of policy direction and control. It shall submit an
annual report to the Department of Health, pursuant to the pertinent provisions of RA
10149.

Section 13. Assistance from other Government Offices. - The Blood Center may
call upon any department, bureau, office, agency or instrumentality of the government,
including govemment-owned or controlled corporations, for such assistance as it may need
in the pursuit of its purposes and objectives.

Section 14. Implementing Rules and Regulations. ~ The Department of Health shall
issue the necessary Rules and Regulations to implement the provisions of this Act within
sixty (60) days from its effectivity.

Section 15. Appropriations. - The amount of Eight Hundred Fifty Million Pesos (Php
850,000,000.00) is hereby appropriated for the initial operation and maintenance of the
Blood Center, Thereafter, such sum as may be necessary for the continued operation of the
Blood Center shall be included in the annual General Appropriations Act.

Section 16. Separability Clause. - Should any provision of this Act be held
unconstitutional, all its other provisions, when able to stand by itself, shall not be affected.


Section 17. Repealing Clause. - All laws, acts, executive orders, administrative
orders, rules and regulations inconsistent herewith, are hereby repealed, amended or

modified accordingly.
Section 18, Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved.