Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
FIFTEENTH CONGRESS 
Third Regular Session 
- ---',...o'-'-'5 0 '.~ 
HOUSE BILL NO. 
_ 
_ 
Introduced by HONORABLE GLORIA MACAPAGAL-ARROYO 
EXPLANATORY NOTE 
The Veterans Memorial Medical Center (VMMC) is one of the landmarl\ 
mstitutions ded1cated to honor the bravery and nationalism of Filipino soldiers. It 
is one of the historical institutions that remind us of the patriotism of our soldiers 
ready to fight and defend our sovereignty. 
The VMMC as we know it today has a colorful history. The hospital was 
constructed by virtue of Public Law 965 s1gned by then President Harry S. 
Truman wh1ch appropriated funds for the construction of a veterans hospital in 
the Philippines. As Philippine counterpart to the appropnation of US Congress. 
President Elpidio Quirino issued Proclamation 169, reserving a parcel of land 
with an area of 54.9 hectares located in the District of Diliman, Quezon City, for 
the Veterans Memorial Hospital (now VMMC). It was a jomt Philippine-American 
undertaking ded1cated to the thousands of Filipino soldiers who fought with the 
US Armed forces dunng the WWll 
It was offiCially maugurated on November 20. 1955 by President Ramon 
Magsaysay. 
It 1s both a historical monument which reflects the vibrancy of 
Philippine heritage and culture and a patrimony of our nation that should be 
conserved and protected. 
The VMMC has played a key role in the history, like no other hospital in 
the country. 
The first President of the Phiilppme Republic Emilio Agu~naldo 
lived out his last few weeks in one o1 the hospital suites before he peacefully 
succumbed to heart failure 1n December 1964. Pres. Sergio Osmeiia and Pres. 
Carlos P. Garc1a both received medical care 1n this medical institution. The late 
Senator Benigno "N ~noy• Aquino, Jr. was confined in the said hospital due to 
complications when he initiated a hunger strike during the Martial Law period and 
opposing the rule of Pres. Ferdinand E. Marcos, Pres. Joseph Estrada, and the 
undersigned stayed and received medical care at the VMMC. The VMMC played 
a vital role in g1ving outstanding heal1h care and the same quality of med1cal 
service to the thousands of veterans and their dependents. 
The Veterans Hospital has emerged as one of the leading state hospt!als 
1n the Philippines, equipped with excellent facilities and competent staffing. 
During the administration oi the undersigned, Pres. George W. Bush initiated a 
program of providing SU$0500,000.00 annually for the hospital. Various medical 
u111versities and colleges became affiliates of the Veterans Hospital. However, 
the capacity of the VMMC to provide continuing quality service and develop itself 
into a medical institution or prestige and excellence is greatly challenged. With 
the enactment of Republic Act No. 6948, wh1ch standardized and upgraded the 
benefits for military veterans and their dependents. the med1cal cente(s patient 
clientele has expanded to include retirees of the Armed Forces of the Philippines 
and their dependents. As a result. every year there are more patients in need of 


medical care and hospitalization who are treated in VMMC which include retirees 
and their dependents. 
The mandate of VMMC is to serve our veterans and their dependents, but 
then it may not be able to carry out this service to the fullest extent because of 
the severely financial limitations. The budget it receives is a measly 1% of the 
Department of National Defense (DNO) annual budget. It has no other source of 
income to support the iree care and treatment of the veterans, the retirees and 
their dependents, except the very limited number of paying patients admitted on 
the availability oi bed space. 
The VMMC is unlike the Philippine Heart Center, Lung Center, Kidney 
Center, Philippine General Hospital and Philippine Children's Medical Center. 
Although these centers are government medical institutions, their use and 
services are not free. They enjoy autonomous and corporate identity. These 
medical institutions have their own charters, yet the Veterans Memorial Medical 
Center, a tertiary hospital that has served this country for 53 years and it is 
staffed by highly qualified and board certified medical specialists and other 
paramedical personnel, does not have its own charter. 
Given the importance of VMMC's mandate of serving veterans, military 
retirees and their dependents, which no other government medical facility is 
tasked with, this bill seeks to strengthen an important historical and medical 
institution. It is the objective of this bill to make VMMC a prime state hospital. It 
aims to provide the hospital with a juridical or corporate personality or to preserve 
its viability and existence. This measure will vest the VMMC with the power to 
own real and personal properties, and shall have a governing body that will direct 
the accomplishment of its mission as defined and delineated by the charter. 
Recognizing the invaluable sacrifices and services of our veterans and 
military retirees, it is only imperative that a medical facility dedicated to serve 
their medical needs as well as their dependents must provided with stability, 
viability and ample resources to ensure that they receive quality medical and 
health services. 
In view of the urgency of this bill and the welfare of veterans, military 
retirees and their dependents, the passage of this measure is earnestly 
requested. 
GLO ~ACAPAGAL-ARROYO 
i<:p~sentative 
Second District, Pampanga 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
FIFTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. _ 
__.l.Jfiw50~2 
Introduced by HONORABLE GLORIA MACAPAGAL-ARROYO 
AN ACT 
TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS 
MEMORIAL MEDICAL CENTER (VMMC), APPROPRIATING FUNDS 
THEREFOR, AND FOR OTHER PURPOSES 
Be if 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 Veterans 
Memorial Medical Center Charter of 2012." 
SEC. 2. Declaration of Policy - It is hereby the declared policy of the 
State to help foster the socioeconomic security and general well-being of the 
country's veterans and retired military personnel, in recognition of their patriotic 
services in times of war and peace for the cause of freedom and democracy: for 
the attainment of national unity, independence, and socioeconomic advancement: 
and for the maintenance of peace and order, in keeping with the goals of the 
Government and the aspirations of the people. 
SEC. 3. VMMC as a Corporate Entity - There is hereby created a trust, 
for the benefit primarily of the Filipino people, under the name and style of the 
Veterans Memorial Medical Center, hereafter referred to as then VMMC. 
To provide greater flexibility in its operations, the VMMC shall be treated in 
a manner consistent with its institutional mission to serve the veterans and shall 
be autonomous in the exercise of its jurisdiction. 
SEC.4. Purposes and Objectives of the Hospital. The VMMC shall 
have the following objectives: 
1. Construct, establish, operate and maintain a veterans' hospital 
for the public welfare; 
2. Stimulate and/or undertake scientific researches on the 
biological, 
demographic, 
social, 
economic, 
eugenic, 
physiological aspects of health disorders and abnormalities and 
their control; and gather, 
compile, present and publish the 
findings of such researches for public dissemination: 
· 3. Facilitate and encourage the dissemination and exchange of 
ideas and information on the prevention, treatment and control 


of diseases; to arouse. enhance and develop public interest and 
awareness on general health and physical fitness; 
4. Encourage and/or undertake the training of physicians, nurses, 
medical technologists, health officers and social workers on the 
practical and scientific conduct and implementation and delivery 
of health services, and related activities; 
5. Assist universities, hospitals and research institutions in their 
studies of health problems, to encourage advanced training on 
matters of, or affecting the physical and mental well-being of the 
people; 
6. Encourage the formation of other organizations on the national, 
provincial, city, municipal or barangay level and to coordinate 
their various efforts and activities for the purpose of achieving a 
more effective and pragmatic approach on the common 
problems relative .to the objectives herein enumerated; and, 
7. Extend medical and other health services to the general public, 
to help prevent, relieve or alleviate the innumerable afflictions 
and maladies of the people specially the poor and less fortunate 
in life, without regard to race, creed, color or political belief; 
SEC. 5. Social Responsibility - T he hospital is primarily committed to 
serve the Filipino war veterans as defined in Republic Act 6948 entitled and "Act 
Standardizing and Upgrading the Benefits for Military Veterans and their 
Dependents." 
SEC. 6. Powers -
For the attainment of the above purposes and 
objectives, the VMMC, as a body corporate, acting through its Board of Trustees, 
shall have all powers pertaining to a juridical person, and is therefore authorized, 
to; 
1. Acquire and hold in any manner property of whatever nature or 
description; 
2. Enter into contracts; 
3. Solicit and receive donations, endowments and funds in the 
form of contributions, whether in cash or in kind, from both the 
public and private sectors; 
4. Open such accounts in banks and other financial institutions, 
and to disburse such funds or invest the same as the Board 
may direct to accomplish or advance the purpose or interest of 
the VMMC; 
5. Invite foreign health specialist and similar in the various medical 
fields to train the personnel or trainees or residents of the 
VMMC; 
6, Send the VMMC personnel to research institutes, medical 
institutes or universities for advance training or observation and 
to attend international or regional conventions, conferences, 


congresses, seminars as the Board may deem necessary to 
accomplish the purposes and objectives of the VMMC; 
7. ·Enter into such agreements and arrangements with other 
medical or other institutions, domestic or foreign as may 
deemed desirable by the Board for purpose of promoting its 
purpose and objectives; 
8. Adopt a set of by-laws, rules and regulations not inconsistent 
with law and the provision hereof to govern the administration 
and operation of the affairs of the VMMC; 
9. Import duty-free essential equipment and materials to meet and 
upgrade its hospital and other related requirements, as well as 
needs 
for 
medical 
trainings 
program, 
provided 
such 
equipments are not available locally; 
10. Establish branches of the VMMC in other provinces or cities of 
the Philippines as may be deemed necessary for greater 
service coverage to veterans and their dependents that are 
living in almost all parts of the country; and, 
11. Perform all such other acts and things as are or may be 
necessary or incidental for the accomplishment of the purposes 
and objectives of the VMMC. 
SEC. 7. Board of Trustees - The VMMC shall be governed by a Board of 
Trustees, composed of the following: 
a. Secretary of the National Defense as Chairperson. 
b. Director of the VMMC as Vice Chairperson 
c. Chairman of the Senate Committee on Defense and Security; 
d. Chairman of the House Committee on Defense and Security ; 
e. Secretary of Health; 
f. 
President of the Philippine Veterans Bank; 
g. President of the Veterans Federation of the Philippines; and, 
h. Four (4) appointive members who shall be distinguished members of 
their own field of specialization, and shall serve for a term of three (3) 
years. At least two(2) of these appointive Trustees should be 
employees of the HospitaL 
7.1 Vacancy- In case of vacancy in the Board of Trustees, except the 
Chairman, such vacancy shall be filled in the same manner as 
provided for the predecessor, and such appointee shall hold office for 
the unexpired term. 
7.2 Meeting & Quorum- The Board of Trustees shall convene regularly. 
The Chairman of the Board may call a special meeting whenever 
necessary; Provided, that the members are notified in writing at least 
e three (3) days prior to the said meeting. A majority of all members of 
the Board holding office at the time the meeting is called shall 
constitute a quorum for Board meetings. In no case shall any and all 
members of the Board appoint representative to act on their behalf. 


SEC. 8. Director. The Director shall be appointed by the President of the 
Philippines upon recommendation of the Board and shall serve for a term of six 
(6) years The Director shall act as the Chief Executive Officer of the VMMC and 
shall perform the following functions: · 
1. Organize the VMMC into a streamlined medical institution with 
admirable facilities and competent staffs to ensure quality service; 
2. Appoint members of the professional and administrative staffs and 
other employees or personnel of the VMMC through a screening 
process based strictly on academic qualifications, experiences and 
other selection standards; determine the terms and conditions of their 
employment, and, remove them for cause in accordance with law and 
due process; 
3. Determine a position qualifications and compensation plan for all 
personnel of the VMMC; 
4·. Fix, recommend and adjust salaries and benefits of the VMMC 
personnel; and, 
5. Carry out necessary managerial and administrative functions that may 
be deemed necessary or as directed . by the Board of Trustees in 
furtherance of the objectives of the VMMC set in this Act. 
SEC. 9. Secretary. There shall be a Secretary of the hospital as 
appointed by the Board of Trustees, who shall be the Secretary of the Board and 
who shall keep such records of the hospital as may be designated by the Board. 
SEC. 10: Hospital Executive Committee - There will be an Executive 
Committee consisting of the following: 
a. Hospital Director as the presiding officer 
b. Heads of the Administrative, Medical, Surgical, Rehabilitative, Dental, 
Psychiatric, Diagnostic and other critical medical departments. 
10.1 Functions. The Committee shall exercise the following functions: 
a. Fix the requirement admission to the hospital; 
b. Prescribe the rules and regulations as to the discharge of patients; 
c. Adopt internal rules of procedures consistent with the provision of the 
charter in order to promote administrative efficiency in the treatment. 
rehabilitation and discharge of serving patients of the hospital; and, 
d. Carry out administrative and managerial task to assist the Director in 
the efficient operations and management of the hospital. 
SEC. 11. Personnel and Medical Staff.-
The VMMC shall have the 
autonomy to employ such employees and Medical personnel, or otherwise enter 
such arrangements with medical specialists and other consultants as its Board of 
Trustees shall determine. The personnel and medical staff of the present 
Veterans Memorial Medical Center shall automatically be transferred to and 
absorbed by the VMMC as herein created . The incumbent Director shall continue 
to serve as such for a period of three (3) years or until his successor shall have 
been appointed by the President of the Philippines . 
• 


SEC. 12: Tax Exemption -
All donations, contributions or endowment 
which may be made by entities or persons to the VMMC shall be exempt from 
income and gift taxes, and the same shall be further deductible in full purpose of 
computing the maximum amount deductible under Section 30, paragraph (h), of 
the National Internal Revenue Code, as amended. 
The VMMC shall be exempt from the payment of all taxes, charges and 
fees, by whatever name designated, and imposed by the Government or any 
political subdivision or instrumentality thereof. 
All income earned by foreign doctors and specialists invited by the Board 
of seminars or other purposes shall be tax exempt. 
Importation of hospital equipment's, supplies, technical and materials duly 
certified by the Board of Trustees including specific and educational computer 
and software materials shall be exempt in custom duties. 
The hospital shall also pay zero value added tax for all transactions 
pertaining to stocks. 
SEC.13. Assistance from Government Offices - The VMMC may call 
upon any department bureau, office, agency or instrumentality of the 
Government. including government owned or controlled corporations, for such 
assistance as it may need in the pursuit of its purposes and objectives. 
All individuals, entities and institutions are hereby enjoined to render full 
assistance and cooperation to VMMC in the accomplishment of its objectives and 
activities. 
SEC. 14. Land Grants and Other Real Properties. The use of properties 
and proceeds of such properties shall be governed by the following: 
a. The state shall support the Veterans Memorial Medical Center in the 
sum or lump sum amount, through general appropriations and other 
financial benefits, and in kind, through land grants and donations and 
use of other real properties. To carry out the intent of these grants, 
income derived from the development, of all land grants and real 
properties shall be used to further the ends of the hospital, as may be 
decided by the Board of Trustees in furtherance of the declared 
hospital objectives under this Act; 
b. Such parcels of land ceded by law, decree or presidential issuance to 
the hospital, are hereby declared to be reserved for the purposes 
intended. The absolute ownership of the hospital over these 
landholdings, including those covered by the original and transfer 
certificates of title in the name of the hospital and their future 
derivatives, is hereby confirmed. Where the issuance of proper 
certificates of title is yet pending for these landholdings, the 
appropriate government office shall expedite the issuance thereof with 
six (6} months from the date of effectively of this Act: Provided; that all 
registration requirements necessary for the issuance of the said titles 
have been submitted and complied with; 
c. The Board of Trustees shall plan, design and approve and/or cause 
the 
implementation 
of 
contracts, 
mechanisms, 
and 
financial 
instruments, such as joint ventures, long term leases, fully-owned 


subsidiaries. securitization and, in exceptional cases, sale to give the 
hospital the flexibility to generate revenues and other resources from 
land grants and other properties. Provided; that such mechanism and 
arrangements shall sustain and protect the environment in accordance 
with law, and be exclusive of the medical core zone of the hospital. 
Provided; finally, that such mechanism and arrangements shall not 
conflict with the academic mission of the hospital; and, 
d. Any plan to generate revenues and other sources from land grants and 
other real properties entrusted to the hospital shall be consistent with 
the hospital mission and orientation as a vehicle to extend health 
services to legitimate member of the Philippine Veterans Association in 
the Philippines. 
14.1 Existing Assets. All existing assets of the VMMC including but no! 
limited to the parcel of land belonging to the private domain of the 
government situated in the District, Quezon City and more particularly 
described in the Bureau of Lands as Lot R.P.-3-8-4-A, BSD-10352, all its 
buildings and other properties shall remain with the VMMC as a corporate 
entity. 
SEC. 15. Safeguards on asset disposition - The preservation of the 
value of the assets of the hospital shall be of primordial consideration. The 
exclusive core zone of the Veterans Memorial Medical Center bounded on the 
South by North Avenue; on the West by Mindanao Avenue, on the East by 
Quezon Memorial Circle and North by Project 6, shall not be sold, transferred, 
ceded, conveyed, assigned, encumbered, or leased to any third party 
inconsistent with the mission of the VMMC. 
SEC. Government Contribution - The amount of Five Hundred Million 
Pesos (Php. 500,000,000.00) is hereby appropriated as contribution of the 
National Government for the initial operations and maintenance of the VMMC. 
Thereafter, the necessary amount to support for the continued operation and 
maintenance of the VMMC shall be appropriated and released subject to the 
approval of the President of the Philippines. 
SEC.17. Auditing -
The books and accounts of the VMMC shall be 
subject to periodic auditing by the Commission on Audit, or his duly authorized 
representative. 
SEC. 18. Annual Report- The VMMC shall render to the President of the 
Philippines an annual report of its activities and recommendations. 
SEC. 19: Effect of the dissolution.- If, for any reason, the VMMC is 
dissolved, its property remaining at the time such dissolution shall revert to the 
Republic for disposition in accordance with law. 
SEC. 20. Separability -Any provision herein be declared unconstitutional, 
the same shall not affect the validity of the other provisions of this Act. 
SEC. 21 . Repealing Clause - All laws, decrees, executive orders, rules 
and regulations or parts thereof, contrary to or inconsistent with the provisions of 
this Act are hereby repealed, amended or modified accordingly. 


SEC. 22. Implementing Rules -
The Implementing 
Rules and 
Regulations shall be formulated within ninety (90) days from the approval of this 
Act 
SEC. 23: Effectivity -This Att shall take effect fifteen ·(15) days after its 
publication in the Official Gazette or in at least two (2) newspapers of general 
circulation or whichever comes earlier. 
Approved,