REPUBLIC OF THE PHILIPPINES 
FIFTEENTH CONGRESS 
) 
) 
) 
First Regular Session 
. SEN ATE 
/L ....... · 
Senate Bill No. 10 8 3;·.·~' ~et!WE() 1,\\ r 
Introduced by Senator Manny Villar 
EXP\-ANATORY NOTE 
I 
. .,,~, 
Health research is vital in the improvement of the blueprint and strategies for 
health interventions, policies and service delivery. It encompasses all different types of 
research including basic, fundamental, 
laboratory, biomedical, clinical, applied, 
epidemiology, psychosocial, population health, health promotion, policy development, 
health economics, health systems and health delivery systems. Many of the 
components of a successful research environment include, among others, the need for 
training, skilled researchers, protection of time, a supportive environment, peer review, 
dissemination and implementation of research results, effective alliances and 
partnerships, and, of course, the financial resources to support the activity. 
The health research landscape is composed mainly of national agencies such as 
the Department of Health (DOH) and Department of Science and Technology (DOST), 
the academe, people's organizations, medical societies and policy- makers. The 
implementation of researches is accomplished through a health research network 
composed of public and private research institutions working in unison or independently 
to respond to the national health needs. 
In Republic Act No. 8503, also known as the "Health Research and Development 
Act of 1998" the National Institutes of Health was established as a center for excellence 
for health research and development, mandated to (1) promote science and technology 
research arid development in the field of health: (2) promote the, development of study 
groups and research programs; (3)establish mechanism for the dissemination and 
utilization of research outputs; and (4) ensure that the results of health research and 
development activities are utilized to Improve the health of the people. 
Executive order No. 102 mandates the Department of Health to provide 
assistance to local government units. People's organizations, and other members of the 
civic society in effectively implementing programs, projects and services that will 
promote the health and wellbeing of every Filipino, prevent and control diseases among 
populations at risk, protect individuals, families and communities exposed to hazards 
and risks that could affect their health, and treat, manage and rehabilitate individuals 
affected by disease and disability. 
By virtue of Executive Order No. 128, the Department of Science and 
Technology, is mandated to (1) provide central direction, leadership and coordination of 
scientific and technological efforts; (2) formulate and implement policies, plans, 
programs and projects for the development of scientific and technological activities in 
the public and private, sectors; and (3) ensure that the results of scientific and 


technological activities are properly applied and utilized to accelerate economic and 
social development. 
In the 1999 Center for Economic Policy Research study on the flow of funds for 
health research: and development it was reported that the government's budget in 1996 
allocated less than 1 % for research and development resources, only 17% of which was 
allotted for health research. Respondents to the survey claimed that a large chunk of 
health R & 0 funds came from the private sector (45%) led by private hospitals. 
However, despite increasing support from the private sector, the total health R & 0 
expenditures are still far below the World Health Organization recommended level of 
5% of total health expenditures. 
Our country's ability to ensure optimum health for every Filipino hinges on the 
degree of priority we grant to health research and development (R & 0) activities, This 
bill, therefore, seeks to oblige a number of government institutions to allocate a 
particular portion of their gross annual revenue or charge additional fees for health 
research and development activities. 


REPUBLIC OF THE PHILIPPINES 
FIFTEENTH CONGRESS 
) 
) 
) 
First Regular Session 
SENATE 
Semite Bill No. 1083 
Introduced by Senator Manny Villar 
AN ACT 
ESTABLISHING A PHILIPPINE NATIONAL HEALTH RESEARCH 
SYSTEM MANDATING SELECTED GOVERNMENT AGENCIES TO 
ALLOCATE PERCENTAGES OF THEIR GROSS ANNUAL INCOME OR 
CHARGE ADDITIONAL fEES FOR HEALTH RESEARCH AND 
DEVELOPMENT (R&D) ACTIVITIES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
SECTION 1. Short Title. This Act shall be known as the "Philippine National 
Health Research System Act of 2010." 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to: 
(A) protect and promote the right of health of the people and instill health 
consciousness among them; and 
(8) improve the quality of life of every Filipino through health research and 
development initiatives. 
SECTION 3. Definitions. For purposes of this Act, the term: 
(A)"Health" is defined as a state of optimal physical, mental and social well-being 
and ability to function at the individual level, and not merely the absence of 
disease or infirmity. 
(8)"Research and development (R & D) for health" is a global term to describe 
research and development activities undertaken to identify, resolve and 
prevent health problems and improve well-being. This encompasses all 
different types of research 
including basic, 
fundamental, 
laboratory, 
biomedical, clinical, applied, epidemiology, psychosocial, population health, 
health promotion, policy development, health economics, health systems and 
health delivery systems. 
(C)"Philippine National Health Research System (PNHRS) is a framework 
anchored on the principles of Essential National Health Research on 
inclusiveness, participation, quality, equity, efficiency and effectiveness, for 
the development of a coherent research agenda which connect to, and 
converge with, the wider health, economic, political, educational and science 
and technology (S & T) systems of the country. 
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(D)"Health research agenda" describes the overall directions and the important 
general principles, issues and priorities which should be addressed in the 
national plan for health Rand D under the National Health Research System. 
The research will be based on a unified national health research agenda for 
the local and national levels. 
(E) "Core agencies" refer to the main national health and health related agencies 
namely: the Department of Health (DOH), the Department of Science and 
Technology-Philippine Council for Health Research and Development (DOST-
PCHRD), the National Institutes of Health (NIH),and the Commission on 
Higher Education (CHED). 
(F) "Coordinating Agencies" refer to PCHRD-DOST and DOH with PCHRD as 
lead coordinator and DOH as co-coordinator. 
(G)"Philippine National Health Research Fund (PNHRF)" means any funds made 
available by appropriations to the partner institutions for attainment of the 
purposes of the PNHRS. 
(H) "Health research stakeholders" include the national and the local private and 
public health agencies, policy makers, the academe, medical societies, 
people's organizations, and others which may have the roles of health 
researchers, program administrators and beneficiaries. 
(I) "Management of Fund" involves the generation, allocation and utilization of the 
Philippine National Health Research Fund, including government and non-
government sources both domestic and international sources. 
Title I 
Philippine National Health Research System 
SECTION 4. Creation of the Philippine National Health Research System.- The 
Philippine National Health Research System (PNHRS) is hereby constituted. It shall be 
made up of all research stakeholders as defined under section 3 (H). 
SECTION 5. Purposes of the.PNHRS. The PNHRS aims to improve the health 
status, productivity, and the quality of life of Filipinos by: 
(1) producing new knowledge through research; 
(2) developing a national· and global network of researchers, research 
organizations, and other members of the health research community; 
(3) deepening the involvement of stakeholders; 
(4) securing sustainable financing for health research and development; 
(5) building capabilities for health research and development activities; 
(6) encouraging individuals to pursue research as a career; 
(7) inculcating internationally and culturally accepted ethical standards and 
principles especially in researches involving human subjects and participants; 
(8) ensuring public access to· the information and other outputs generated by the 
health research systems; and 
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(9) encouraging the utilization of research results in the form of products, 
technologies, programs and services. 
SECTION 6. Structure and Organization of the PNHRS. The Philippine National 
Health Research System shall have a Governing Council made up of the following: 
(1) The Secretary of the Department of Science and Technology; 
(2) The Secretary of the Depa·rtment of Health; 
(3) The Chair of the Commission on Higher Education; 
(4) The Executive Director of the Philippine Council for Health Research and 
Development; 
(5) The Director of the Health Policy Division and Planning Bureau; 
(6) The Chancellor, UP Manila 
(7) The Executive Director, national Nutrition Council 
(8) The Director, National Institutes of Health 
(9) The Director, Social Services Director-NEDA 
(10) Industry Representative 
(11) NGO Representative 
(12) Representative from Academe 
(13) LGU representative 
(14) The Visayas regional health research system representative; 
(15) The Mindanao regional health research system representative; each of 
whom shall serve for a term of two years. 
SECTION 7. Functions of the Governing Council. 
The Governing Council shall: 
(1) set policies and directiqns for the Philippine National Health Research 
System. 
(2) periodically review and approve the long-term plans and programs of the 
Philippine National Health Research System. 
(3) evaluate and approve the National Health Research Agenda that 
(4) identify areas that will serve as the foci of the National Health Research 
Agenda. 
(5) review grants and/or donations from domestic and international funding 
agencies. It shall consider the terms of the grants/donations; assess the 
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benefits from the grants/donations; and evaluate the relevance of the grants 
terms on over-all health research plans and objectives. 
(6) review and approve research projects or programs that have an estimated 
cost of equal to or more than one (1) million pesos. 
(7) approve investments to be made from the Philippine National Health 
Research Fund created under Section 9 of this Act, after studying 
recommendations made by the Investment Advisory Group, established 
under Section 15. 
SECTION 8. Functions of the Advisory Board. A nine member Advisory Board 
shall provide advice to the PNHRS Governing Council. The Advisory Board composed 
of individuals with broad knowledge and experience in areas affecting health and health 
research. 
SECTION 9. Functions of the Philippine National Health Research Committees. 
The PNHRS shall be composed of six (6) committees namely the Committees on 
Research Management, Capacity Building, Ethics, Structure/Organization, Monitoring 
and Evaluation, Research Utilization, and Resource Mobilization. The Committees shall: 
(1) provide technical and policy advice in setting health research agenda, 
formulating policies and addressing matters related to priority setting, 
proposal review and funding/fund management, and project monitoring and 
evaluation; 
(2) ensure adherence to universal ethical principles and values on the dignity of 
health research participants; 
(3) provide technical and policy advice in the development and continuous supply 
of quality human and instit~tional resources for health research; 
(4) provide technical and policy advice in the development and continuous supply 
of quality human and institutional resources for health research; 
(5) provide technical and policy advice to ensure the stewardship and leadership 
of the PNHRS espoused health research that connects to health needs and 
outcomes, policy and actipn; 
(6) provide technical and policy advice to develop and sustain knowledge 
management systems, communication and advocacy strategies to connect 
research to health needs and outcomes, policy and action; 
(7) provide technical and policy advice/support to secure sustainable financing, 
and ensure equity, effective and efficient use of resources for health 
research and development. 
SECTION 10. Roles of the Core Agencies. The Philippine Council on Health 
Research and Development, the National Institutes of Health, the Department of Health, 
and CHED shall serve as the core agencies in the implementation of the purposes of 
this Act: 
(1)The DOST-PCHRD, DOH, NIH and CHED, in accordance with the purposes 
set in Section 4, shall develop through consultation with stakeholders the 
research agenda for the Philippine National Health Research System, subject 
to the Governing Council's approval. 
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(2)The DOST-PCHRD shall approve and if necessary partake in specific projects 
and programs proposed by health research stakeholders defined in Sec. 3 (G), 
provided the cost of each project or program is estimated below one (1) million 
pesos and that they are in accordance with the PNHRS research agenda. 
(3) The NIH, CHED and the DOH shall also approve research projects and 
programs proposed by their internal organizations, provided that the 
projects/programs are in accordance with the PNHRS research agenda. 
(4) DOST-PCHRD, DOH, NIH, and CHED can utilize the sum allotted for 
research projects and 'programs from the Philippine National Health 
Research Fund stipulated in Title II. 
(5) The four agencies, collectively, shall establish the criteria for stakeholders 
that can apply for the grants, They shall collectively establish the criteria for 
the approval of projects a[ld programs. These criteria shall be reflected in the 
implementing rules and regulation of this Act 
Title II 
Philippine Health Research Fund 
SECTION 11, Creation of the Philippine National Health Research Fund, To 
pursue the objectives of the PNHRS, a Philippine National Health Research Fund is 
hereby created. 
SECTION 12. Fund Uses. The main objective of this fund is to provide sustained 
financial support for knowledge management and its translation into efficient and 
effective health policies and service delivery; a strengthened health care system; and 
improved health for all Filipinos, It shall ensure that the Government invests in health 
research as part of its commitment to secure the well-being of its citizens, Specifically, it 
shall: 
(1) support quality ethical research and the application of ethical principles to 
health research and development activities; 
(2) create a robust health research environment in the Philippines that will attract, 
develop and keep excellent researchers and provide them with the 
opportunity to contribute t6 the improvement of people's health in the country 
and the world; 
(3) fulfill an integrated health research agenda across disciplines, sectors and 
regions that reflects the emerging health needs of Filipinos and the evolution 
of the health system, and supports health policy decision-making; 
(4) ensure the promotion research 
undertakings that meet the highest 
international scientific standards of excellence and ethics and that pertains to 
all aspects of health, including bio-medical research, clinical research and 
research on health systems, health services, the health of populations, 
societal and cultural dimensions of health of populations, societal and cultural 
dimensions of health and environmental influences on health; 
(5) address emerging health opportunities, threats and challenges (e.g. avian flu, 
SARS) and accelerate, the discovery of cures and treatments and 
improvements to health care, prevention and well ness strategies; 
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(6) promote then dissemination of research-based knowledge, technologies, and 
innovations and the application of health research to improve the health of 
Filipinos and, provide support for the participation of Filipino health scientists 
in international collaboration and partnerships in health research. 
SECTION 13. Sources of Fund and Method of Collection. 
(1) The Philippine National Health Research Fund will be sourced out from the 
following: 
a. One percent (1 %) of the Philippine Health Insurance Corporation gross annual 
revenue until the PNHRF reaches the sum of 10 billion pesos; 
b. Five percent (5%)of the National Statistics Office's annual revenue from birth 
certificate issuances; 
c. Additional Php50 for driver's license issuance and renewal fees charged by the 
Land Transportation Office; 
d. Additional Php100 health research fee charged for license application and 
renewal 
of all 
health 
professional 
(i.e. 
physicians, 
nurses, 
dentists, 
pharmacists, medical technologists, midwives, dieticians, veterinarians, etc.); 
e. One percent (1 %) total revenues generated by the Department of Environment 
and Natural Resources from the motor vehicle user's charge, and fines and 
penalties collected under the Clean Air Act and the Clear Water Act: the 
following: 
f. Any other appropriations 'from government when reflected in the General 
Appropriations Act; and 
g. Donations and grants from domestic and international sources provided that 
the receipt thereof does' not constitute a breach of Philippine law and 
recognized international treaties. 
(2) All agencies covered under Section 13 Paragraph 1 are hereby directed to 
automatically transfer the· amount prescribed by this act to the specified 
account established by PCHRD as the fund manager, except in cases of 
force majeure and similar circumstances. The transfer must take place during 
the first quarter of the current fiscal year with the previous fiscal year as basis 
for determining the contribution to the fund. This does not preclude they fall 
within the specifications of this act. 
(3) The rates indicated in Section 13 Paragraph I shall be reviewed and updated 
every five years to accommodate altered economic conditions. 
SECTION 14. Administration of Fund 
(1) All funds under the management and control of the Governing Council shall be 
subjec~ to all regulations covering public funds including auditing requirements. 
(2) All official disbursements from the PNHRF shall be managed and administered 
by PCHRD after the approval made by the Governing Council as the case may 
be. 
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(3) The Governing Council is authorized to use the interest and returns generated by 
the PNHRF during its first year and 20% of contributions for the succeeding 
years. The balance from the contributions then reverts to the PNHRF account. 
This arrangement shall be in force until such time that the PNHRF reaches the 
ceiling of 10 billion pesos. 
(4) Upon reaching the ceiling of 10 billion pesos, the Governing Council shall 
manage all contributions as they see fit, provided, that such uses fall within the 
purposes of this Act. 
(5) Such sum that shall be deposited in the PNHRF account, following the 
deliberation and concurrence of the Governing Council, can be invested in: 
a. 
Interest-bearing bonds, securities, and other evidence of indebtedness of 
the Republic of the Philippines and other evidences to which full faith and 
credit and unconditional guarantee of the Republic of the Philippines is 
pledged. 
b. 
In interest-bearing deposits and loans to or securities in any domestic 
bank doing business in the Philippines: Provided, that in the case of such 
deposits, this shall not exceed at any time the unimpaired capital and 
surplus or total private deposits of the depository bank, whichever is 
smaller. Provided, further, that said bank shall first have been designated 
as depository for this purpose by the Monetary Board of the Bangko 
Sentral ng Pilipinas; and 
c. 
In preferred stocks of any solvent corporation or institution created or 
existing under the laws of the Philippines: Provided, that the issuing, 
assuming, or guaranteeing entity or its predecessor has paid regular 
dividends upon its preferred or guaranteed stocks for a period of at least 
three (3) years immediately preceding the date of investment in such 
preferred or guaranteed stocks. Provided further, that if the stocks are 
guaranteed the amount of stocks so guaranteed is not excess of fifty 
percent (50%) of the amount of the preferred common stocks as the case 
may be of the issuing corporation. Provided furthermore, that if the 
corporation or institution has not paid dividends upon its preferred stocks, 
the corporation or institution has sufficient retained earnings to declare 
dividends for at least two years on such preferred stocks and in common 
stocks options. The Board can also invest in common stocks of any 
solvent corporation or institution created or existing under Philippine laws, 
in the stock exchange with proven track record of profitability and payment 
of dividends over the last three (3) years or in the common stocks of a 
newly organized corporation about to be listed in the Philippine stock 
exchange. Provided,finally, that such duly organized corporation shall 
have been rated "A, ·double "As" or triple "As" by authorized accredited 
domestic rating agencies or in mutual funds including allied investments. 
(6) All investments of PNHRF shall be be fully disclosed to the public. 
SECTION 15. Creation of the Investment Advisory Group. 
(1) An Investment Advisory Group is hereby established to make recommendations 
on matter of investments from the PNHRF. The group shall recommend the 
method of investment that will yield the highest return for the PNHRF. 
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(2) The advisory group shall compose of: 
a. A DOH representative to be appointed by the Health Secretary; 
b. A DOST-PCHRD representative to be appointed by the DOST Secretary; 
c. A representative from the NIH to be appointed by the NIH Director. 
d. Two reputable economists or market analysts with extensive knowledge of the 
financial and stick markets; 
e. A representative from the Bangko Sentral ng Pilipinas. 
f. Two reputable members of the bar; 
g. A representative from the research community. 
Title III 
Tra~sitory Provisions 
SECTION 16. Implementing Rules and Regulation. The Coordinating Agencies 
shall draw up the implementing rules and regulations for this Act within 
a year after the effectivity of this Act. . 
SECTION 17. Separability Clause. If any provision or part hereof, is held invalid 
or unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SECTION 18. Repealing Clause. Any law, presidential decree or issuance, 
executive order, letter of instruction" administrative order, rule or regulation contrary to 
or inconsistent with, the provisions of this Act is hereby repealed, modified or amended 
accordingly. 
SECTION 19. Effectivity Clause. This Act shall take effect fifteen (15) days after 
its publication in at least two (2) newspapers of general circulation. 
Approved. 
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