NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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72 NOV 29 P5:l7
SENATE
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
MODERNIZING THE REGULATION OF HEALTH FACILITIES AND SERVICES, 
AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE 
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE "HOSPITAL 
LICENSURE ACT"
EXPLANATORY NOTE
The COVID-19 pandemic has led to the growth, evolution and expansion of 
health service provisions in an unprecedented means. This global phenomenon has 
forced the transformation of health regulations to adapt into the changing times. 
Relatedly, a number of health facilities in the country no longer qualify under the 
existing regulatory mandate of the Department of Health (DOH) through the Bureau 
of Health Facilities and Services (BHFS).
The measure provides for the upgrading of critical technical guidelines and 
infrastructure to enable the DOH to cope with the challenges of ensuring a high quality 
of health facilities and services. The management of a benchmarking system will 
improve quality and efficiency in health regulation, ensure accessibility with respect to 
necessary health facilities and address the increasing cost of health services.
According to a study conducted by the DOH in 2017, the increasing health care 
cost, particularly hospital care, is a reality recognized by both the government and 
other health stakeholders. By regulating the costs of health services in health facilities 
especially through a strengthened Bureau of Health Facilities and Services, these 
services will be made more accessible financially, particularly for the disadvantaged 
sector of the population.


This bill proposes to strengthen the regulation of health facilities and services 
by authorizing the BHFS of the Department of Health to establish and prescribe rules, 
regulations, and standards; inspect and monitor for continued compliance; implement 
a classification system; approve building plans and construction design; provide 
advice; collect fees; and conduct administrative hearings and impose penalties.
In view of establishing a whole-of-industry regulation to health facilities, the 
passage of this bill is earnestly sought.
REVILLA, JR.
RAMO


Senate
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NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
*22 NOV 29 P5:i7
SENATE
Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
MODERNIZING THE REGULATION OF HEALTH FACILITIES AND SERVICES, 
AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE 
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE "HOSPITAL 
LICENSURE ACT"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "Health Facilities
2 
Regulation Act of2022'.
3 
Sec. 2. Definition of Terms. - For purposes of this Act, the following terms are
4 
hereby defined as follows:
5 
a. Health Facilities refer to institutions whether stationary or mobile, land based
6 
or otherwise and other health related establishments which provide diagnostic,
7 
therapeutic, rehabilitative, and other health care services, except hospital
8 
pharmacies;
9 
b. License refers to a formal authorization Issued by the Department of Health
10 
(DOH) to an Individual, partnership, corporation or association to operate a
11 
health facility or services. It is a prerequisite for accreditation of a hospital and
12 
other health facilities by any accrediting body that is recognized by the DOH;
13 
c. Licensee refers to the person, partnership, corporation, cooperative or
14 
association granted a license to operate and maintain a health facility or serves
15 
according to an approved standard set by the Bureau;


1 
d. Department of Health-Permit to Conduct (DOH-PTC) refers to a permit issued
2 
by DOH through the Health Facilities and Services Regulatory Bureau (HFSRB)
3 
to an applicant who will establish and operate a hospital or other health facility,
4 
upon compliance with required documents set forth in this order prior to the
5 
actual construction of the said facility. A DOH-PTC is also required for hospitals
6 
and other health facilities with substantial alteration, expansion, renovation,
7 
increase in the number of beds or for additional services (add-ons) beyond their
8 
service capability. It is a prerequisite for License to Operate;
9 
e. Registration refers to the act or process of entering information about a health
10 
facility into the records of the public health system.
11 
Sec. 3. Bureau of Health Facilities and Services (BHFS). - The Health Facilities
12 
and Services Regulatory Bureau (HFSRB) is hereby renamed as the Bureau of Health
13 
Facilities and Services (BHFS) herein referred to as the Bureau, which shall be created
14 
in the DOH. The Bureau shall be under the Office of the Secretary and shall have the
15 
following functions, powers and duties:
16 
a. To promulgate, establish and prescribe rules, regulations, standards,
17 
requirements and specifications in the construction and operation of health
18 
facilities and impose penalties for violations of such;
19 
b. To inspect and monitor all health facilities and other related facilities to ensure
20 
their continued compliance with the rules and regulations in accordance with
21 
this Act, and to make recommendations to the directors or administrators of
22 
health facilities for the correction of deficiencies found during the inspections;
23 
c. To study and adopt a system of classifying health facilities and other related
24 
facilities in the Philippines;
25 
d. To review and approve construction designs and plans for all health facilities
26 
including renovation or expansion of the same, in accordance with the
27 
provisions of this Act;
28 
e. To determine, levy, assess and collect the appropriate permit fee, registration
29 
fee, license fee and surcharges pertinent to the operation of facilities and
30 
services, except in cases where charges or rates are established by international
31 
bodies or associations of which the Philippines is a participating member or by


1 
bodies recognized by the Philippine government as the proper arbiter of such
2 
charges or rates;
3 
f. To coordinate and call the assistance of any department, office, agency or
4 
instrumentality of the national or local government and other entities concerned
5 
with any aspect involving health facilities for the effective implementation of
6 
this Act;
7 
g. To maintain a register of health facilities and other related facilities with licenses
8 
indicating the name of the facility, address or location, classification, name of
9 
the director or administrator, ownership, number of authorized beds and such
10 
other pertinent data as may be necessary;
11 
h. To promulgate and implement the rules and regulations governing the
12 
registration, licensure and operations of health facilities and related facilities,
13 
and to periodically review and amend the same, subject to the approval of the
14 
Secretary and in consultation with the sectors concerned: Provided, That such
15 
rules and regulations shall be in accordance with the provisions of this Act;
16 
i. To grant a certificate of license for the operation and maintenance of health
17 
facilities and services, and to suspend or revoke the same in accordance with
18 
the provisions of this Act;
19 
j. To hire and train competent individuals and provide qualifications of personnel
20 
to be designated as regulatory officers;
21 
k. To submit annual reports to the Secretary of Health, and the Chairpersons of
22 
the Committees on Health of both Houses of Congress; and
23 
I. To perform such other functions necessary to carry out the duties prescribed
24 
under this Act.
25 
Sec. 4. Quasi-Judicia! Powers. - To carry out its tasks more effectively, the
26 
Bureau shall be vested with the following quasi-judicial powers:
27 
a. To investigate, hear and decide administrative cases initiated by the Bureau or
28 
filed by any person against a health facility or health service establishment
29 
violating any provision of this Act and its implementing rules and regulations
30 
and to impose appropriate administrative sanctions or penalties provided in this
31 
Act;


1 
b. To promulgate rules governing the conduct of administrative hearings;
2 
Provided, That in such proceedings, the Bureau shall not be bound by the
3 
technical rules of evidence of the Rules of Court; Provided, further, that the
4 
latter may be applied in a suppletory manner;
5 
c. To administer oaths and affirmations, and to issue subpoena duces tecum and
6 
ad testificandum, requiring the production of such books, contracts,
7 
correspondence, records, statement of accounts and other documents and the
8 
attendance and testimony of parties and witnesses, as may be material to the
9 
investigation being conducted by the Bureau;
10 
d. To exercise contempt powers and impose appropriate penalties;
11 
e. To cause the prosecution of all cases involving violations of this Act and its
12 
implementing rules and regulations;
13 
f. To summarily order the closure of health facilities and other related facilities
14 
operating without a license; and
15 
g. To preventively suspend health facilities found during inspection or monitoring
16 
to have committed gross violations of the standards or rules and regulations,
17 
such as non-compliance to the approved construction design; any fraudulent,
18 
unscrupulous activities, false claims or misrepresentations; operating with
19 
unlicensed or unqualified health personnel; and the commission or omission of
20 
any act which may result to serious injury, permanent disability or loss of life
21 
of patient or staff, or would compromise public safety.
22 
Sec. 5. Mandatory Conciiiation-Mediation. - The Bureau shall exert all efforts
23 
towards the amicable settlement of an administrative case within its jurisdiction on or
24 
before the first hearing. Towards this end, it shall have the power to ask the assistance
25 
of relevant government officials and qualified private individuals to act as a compulsory
26 
mediator on cases referred to it.
27 
Sec. 6. Registration and License. - The Bureau shall facilitate the delivery of
28 
high-quality and cost-effective health care by promoting competition among health
29 
facilities. Towards this end, all hospitals and other health facilities, government or
30 
private, shall be registered and duly licensed by the Bureau before such facilities are
31 
allowed to operate or be opened to the public. Both public and private health facilities
32 
shall be required to apply for the permit to construct and license to operate.


1 
Sec. 7. Organization. - The Director of the Bureau shall, subject to the approval
2 
of the Secretary of Health, organize its personnel in such divisions and units as will
3 
ensure efficiency and effectiveness.
4 
The Bureau shall establish, operate and maintain a regional office in each of
5 
the administrative regions of the country to enforce regulatory policies and standards
6 
for the licensing, accreditation, and monitoring of health facilities to ensure quality
7 
health care. In order to allow the Bureau to carry out its functions and responsibilities,
8 
the Secretary of Health shall hire additional personnel, as deemed necessary. The
9 
head of the Bureau shall make the necessary recommendations to the Secretary of
10 
Health regarding the number of competencies of additional personnel to be hired.
11 
Sec. 8. Minimum Qualifications for Appointment as Chief Executive Officer,
12 
Chief Operating Officer, or Administrative Officer. - The Chief Executive Officer, Chief
13 
Operating Officer, or Administrative Officer of a hospital or health facility who shall be
14 
responsible for the overall management and administration of the hospital;
15 
formulation of policies, plans, programs and strategies to ensure implementation of
16 
health standards; and the day-to-day supervision of the functional units shall possess
17 
any of the following minimum qualifications:
18 
a. Formal baccalaureate degree, preferably with a master's degree in hospital
19 
administration or related course; or
20 
b. At least five (5) years' experience in a supervisory or managerial position.
21 
Sec. 9. Classification of Hospitals and Other Health Facilities. - The existing
22 
classification of hospitals and other health facilities including the system, rules and
23 
regulations governing their classification shall be subject to automatic review by the
24 
Bureau, in consultation with relevant stakeholders, within three (3) years from the
25 
effectivity of this Act and thereafter as it may deem necessary. It shall take into
26 
consideration the findings and recommendations made by Congress, if any, and the
27 
actual situation in dealing with the existing classification of hospitals and other health
28 
facilities for the purpose of protecting and promoting the health of the public by
29 
ensuring a minimum quality of service rendered by hospitals and other regulated
30 
health facilities and to assure the safety of patients and personnel. Classification of
31 
health facilities and other related facilities shall only be made upon the approval of the


1 
Secretary of Health after mandatory consultation with representatives from
2 
government and private hospital associations and patient organizations.
3 
Sec. 10. Construction Design. - The Bureau shall review and approve the
4 
construction design and plans of health facilities or related facilities to be constructed
5 
or which shall undergo renovation or expansion. An application for the construction
6 
design of a health facility or other related facility shall be submitted to the Bureau in
7 
a form prescribed by the latter and accompanied by a plan of the facility proposed to
8 
be constructed. The approved construction design and plan Issued by the Bureau shall
9 
be a prerequisite for the issuance of a building permit by the official of the municipality
10 
or city where the facility is proposed to be constructed. All Level III government
11 
hospitals to be constructed shall include in its design the provision of geriatric ward.
12 
Sec. 11. Appiication, Inspection, and Issuance of License to Operate (LTO). -
13 
All health facilities shall be duly licensed by the Bureau, in accordance with Republic
14 
Act No. 11032 or the "Ease of Doing Business Act", before such facilities are allowed
15 
to operate or be opened to the public. An application of a health facility for the
16 
issuance of a License to Operate (LTO), including its medical ancillary services, shall
17 
be filed with the Bureau or its Regional office using the prescribed forms. The LTO
18 
shall be issued upon due compliance of the applicant with the rules and regulations
19 
prescribed by the Bureau pursuant to the provisions of this Act: Provided, That the
20 
Bureau has conducted a comprehensive on-site inspection and has certified that the
21 
applicant has satisfactorily complied with the requisites prescribed in this Act and its
22 
implementing rules and regulations (IRR). Provided, further, that an applicant shall
23 
get the approval of the Food and Drug Administration (FDA) for its pharmacy or
24 
Philippine Nuclear Research Institute (PNRI) for medical radiation facility.
25 
The FDA, PNRI, Department of Environment and Natural Resources (DENR)
26 
and other agencies involved in the regulation of health facilities shall employ a One
27 
Stop Shop strategy in the processing of applications through systems that are
28 
accessible to the public. Upon issuance of the LTO, a health facility shall be included
29 
in the Bureau's registry and in the National Health Facility Registry upon the approval
30 
of the DOH. All licensed health facilities shall be automatically allowed to participate
31 
in the National Health Insurance Program.


1 
Sec. 12. Validity and Renewal of License. - The initial license to operate and
2 
maintain a health facility or other related facility shall be valid for a period of three (3)
3 
years from its date of issuance, and shall be renewed regularly, subject to the rules
4 
and regulations to be issued by the Bureau.
5 
Sec. 13. Suspension and Revocation of License. - The Bureau, after conducting
6 
an administrative hearing, with due notice to the licensee, may suspend or revoke the
7 
license to operate and maintain a health facility or other related facility of any person,
8 
partnership, corporation or association for any of the following grounds:
9 
a. Violation by the licensee of any provision of this Act or any other existing law;
10 
b. Violation of rules and regulations prescribed in the implementation of this Act;
11 
and
12 
c. Failure to make necessary corrections or adjustments required by the Bureau
13 
in the improvement or maintenance of facilities and services.
14 
Sec. 14. Appeal. - The orders, rulings or decisions of the Bureau shall be
15 
appealable to the Secretary of Health.
16 
Sec. 15. Separate Licenses Required. - Separate licenses shall be required for
17 
health facilities or other related facilities or branches thereof maintained in separate
18 
premises even though they are operated under the same management: Provided,
19 
however. That separate licenses shall not be required for separate buildings in the
20 
same compound: Provided, further. That the approval of the designs and plans for
21 
construction or renovation of buildings within the same compound shall also be
22 
secured from the Bureau to determine compliance with standards and requirements
23 
herein authorized.
24 
Sec. 16. Non-Transferabiiity of License. - A license for the operation of a health
25 
facility or other related facility shall not be transferable. The Bureau shall be notified
26 
of any change in ownership, change of name of the health facility or other related
27 
facility. Transfer of location of the facility shall require an application for a new license.
28 
Sec. 17. Penalties. - Any person, partnership, association, or corporation who
29 
establishes, operates, conducts, manages or maintains a health facility or other related
30 
facility within the meaning of this Act without first obtaining a license, or violates any
31 
provision of this Act or its Implementing Rules and Regulations shall be liable to a fine
32 
of not less than Fifty Thousand Pesos (P50,000.00) but not to exceed One Hundred


1 
Thousand Pesos (P100,000.00) for the first offense, not less than One Hundred
2 
Thousand Pesos (P100,000.00) but not to exceed Five Hundred Thousand Pesos
3 
(P500,000.00) for the second offense, and not less than Five Hundred Thousand Pesos
4 
(P500,000.00) but not to exceed One billion Pesos (P1,000,000.00) for the third and
5 
subsequent offenses. After the third offense, the license of the hospital shall be
6 
revoked. Each day that the health facility or other related facility operates after the
7 
first violation shall be considered a subsequent offense. In addition to the penalties
8 
specified in the preceding paragraph, the Bureau may summarily order the closure of
9 
any health facility or other related facility found operating without a license or revoke
10 
the license to operate of any health facility or other related facility after due process.
11 
Facilities may only re-apply for a new LTO one (1) year after revocation of its license.
12 
Sec. 18. Income Retention. - To ensure that the Bureau shall have full authority
13 
to utilize its income and enhance its capacity to expand and to improve the quality of
14 
its services, it is hereby authorized to retain and utilize one hundred percent (100%)
15 
of its income generated from various fees and surcharges without remitting the same
16 
to the Bureau of Treasury. In no case shall the retained income be used for the
17 
payment of salaries and other personnel benefits. The retained income shall be
18 
deposited in an authorized government depository bank recommended by the DOH,
19 
the DBM, and the Department of Finance (DOF).
20 
Sec. 19. Appropriations. - The current appropriations of the DOH under the
21 
General Appropriations Act (GAA) shall be used to carry out the initial implementation
22 
of this Act. Thereafter, such sums as may be necessary for the continued
23 
implementation of this Act shall be included in the succeeding GAA.
24 
Sec. 20. Mandatory Review. - With the primary objective of overseeing the
25 
implementation of this Act and reviewing the accomplishments and the utilization of
26 
income of the Bureau, Congress shall undertake a mandatory review of this Act at
27 
least once every five (5) years and as often as it may deem necessary.
28 
Sec. 21. Impiementing Rules and Regulations (IRR). - The Secretary of Health,
29 
upon the recommendation of the Bureau, FDA, PNRI, and other concerned agencies
30 
and after consultation with recognized health facilities, associations, patients'
31 
organizations and other civil society organizations, shall issue the IRR to implement
32 
the provisions of this Act within ninety (90) days from its effectivity.


1 
Sec. 22. Separability Clause. - If any portion of this Act shall be held invalid or
2 
unconstitutional, such invalidity or unconstitutionality shall not affect the other
3 
provisions hereof, and shall remain in full force and effect.
4 
Sec. 23. Repealing Clause. - Republic Act No. 4226, otherwise known as the
5 
"Hospital Licensure Ad" is hereby repealed. Presidential decrees, executive orders,
6 
rules and regulations and other issuances or parts thereof which are contrary to, or
7 
inconsistent with, the provisions of this Act are hereby repealed, amended or modified
8 
accordingly.
9 
Sec. 24. EffectMty Clause. - This act shall take effect fifteen (15) days after its
10 
complete publication either in the Official Gazette or in at least two (2) newspapers of
11 
general circulation in the Philippines.
Approved,