FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
Introduced by Senator Antonio “Sonny” F. Trillanes IV 
EXPLANATORY NOTE 
The Constitution mandates that the State shall adopt an integrated and 
comprehensive approach to health development which would enable all the 
citizens to afford basic social services such as health. Even with the passage of 
the Quality Affordable Medicine Law however, other costs of commodities 
continue to increase, thus fewer people have access to medical care. 
The devolution of the health services to the local government units via the Local 
Government Code of 1991 was a welcome development to the LGUs. However, 
the function of delivering health care services to their people met several 
setbacks such as financial and budgetary constraints. 
This bill seeks to introduce a cost sharing scheme between LGUs, their 
residents, and the Department of Health to institutionalize local health delivery 
system and solve the problem with regard to access to medical services. The bill 
also seeks to establish a Board of Trustees that shall manage the proposed 
system. 
With this proposed measure, no Filipino will be then denied access to medical 
and hospital services 
In view of the foregoing, immediate passage of this bill is earnestly requested 
ANT **LlV
NI “S0NNY”F.T ILLA 
Senator 


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FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
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SENATE 
Introduced by Senator Antonio "Sonny" F. Trillanes IV 
AN ACT 
ESTABLISHING A COST SHARING SCHEME TO PROVIDE FOR A 
HOSPITAL CARE PROGRAM IN LOCAL GOVERNMENT UNITS AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled. 
SECTION 1. Declaration of Policy. - It is the policy of the State to 
provide for adequate health services for all its citizens as mandated by the 
Constitution. As a basic service, this function is now a responsibility of Local 
Government Units (LGUs). As such, all local government units as mandated in 
the Local Government Code of 1991 or Republic Act No. 7160 is required to 
render health services to their constituents through the establishment and .. 
maintenance of health facilities and to provide access to proper medical care 
possible. Local government units shall utilize the powers and authority given to 
them to fulfill this mandate including consolidating or coordinating their efforts, 
services and resources for purposes commonly beneficial among them and the 
provision of budgetary allocations for health programs and services. 
SEC. 2. Establishment of a Cost Sharing Scheme for Hospital Care 
Program. - Every province or city, in cooperation with the municipalities and 
barangays, shall establish a Cost Sharing Scheme for a Hospital Care Program. 
This scheme shall ensure the access of their residents to affordable quality and 
accessible medical care from health facilities and hospitals. The Hospital Care 
program will cover all residents of the local government units under their 
respective jurisdictions. 
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SEC. 3. The Cost Sharing Scheme. - Every province or city, municipality 
and barangay shall appropriate funds for the Hospital Care Program, which shall 
be placed in Trust Fund for this purpose. The contribution of each local 
government shall be as follows 
City Dwellers 
Municipal Residents 
(per person) 
(per person) 
Resident 
P 30.00 
Resident 
P 30.00 
Barangay 
15.00 
Barangay 
15.00 
City Government 
120.00 
Municipal Government 
70.00 
Dept. of Health 
75.00 
Provincial Government 
50.00 
Dept. of Health 
75.00 
Total 
P240.00 
Total 
P240.00 
The contributions to the Cost Sharing Scheme may be adjusted by the 
Board of Trustees who will manage the program according to the needs of its 
beneficiaries and to improve the quality of health care services. Provided, 
however, that any adjustment in the National Government contribution shall be 
decided by the Department of Health according to the needs of the respective 
local government units and the availability of funds. 
The trust fund shall be used solely for the purposes of the Hospital Care 
Program and the improvement of the health facilities. The fund shall be deposited 
into a bank account and managed by the Board of Trustees. Provided, however, 
that the fund shall not be invested in any financial instrument or undertaking that 
may jeopardize the feasibility and viability of the Hospital Care Program. 
SEC. 4. identification Card System. - There is hereby established an ID 
System which shall require the issuance of an identification card to every citizen 
as proof of their qualification to the program, and which shall contain the 
following information: (a) residence address; (b) date of birth; (c) blood type; (d) 
thumb mark; (e) civil status; and (9 picture. The identification card shall be signed 
by the barangay treasurer, municipal/ city treasurer and municipal/ city health 
officer. Every citizen seeking medical attention shall present said ID upon 
admission to any hospital. Said ID shall be accepted as proof of identity in all 
government sectors including the COMELEC. 
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SEC. 5. Creation of the Board of Trustees. - There shall be a Board of 
Trustees in every province to manage the Hospital Care Program and the Trust 
Fund. 
a). For provinces, the Board of Trustees shall be composed of the 
Provincial Governor as Chairman, Provincial Health Officer as President and 
Chief Executive Officer, and the following as members: 
President of the Provincial Mayor’s League 
Chairman of the Provincial Councilor’s League 
Chairman of the Provincial Barangay’s League 
Vice Governor of the Province 
Chairman of the Provincial Health Board 
Four (4) Representatives from four Non-Government Organizations 
b) For Highly Urbanized Cities, the Board of Trustees shall be composed 
of the City Mayor as Chairman, City Health Officer as President and Chief 
Executive Officer, and the following as members: 
President of Mayors’ League 
Chairman of the Councilors’ League 
Chairman of the Barangays’ League 
Vice Mayor of the City 
Chairman of the City Health Board 
Four (4) Representatives from four Non-Government Organizations 
The Non-Government Organization representatives shall be selected by 
the Provincial Governor or City Mayor, as the case may be, from NGOs involved 
in providing health and social services operating in the province or city. 
The members of the Board shall have a term of three (3) years and shall 
receive reasonable allowances as determined by the Board. 
SEC. 6. Powers and Functions of the Board of Trustees. - The Board 
of Trustees shall have the following powers and functions: 
a) To administer the Hospital Care Program and manage the Trust Fund; 
b) To formulate and promulgate policies for the sound administration of 
the program; 
c) To set standards necessary to ensure the quality of hospital service, 
the proper utilization of services, viability of the Trust fund and other rules that 
may be needed for the successful implementation of the Hospital Care Program; 
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d) To formulate the rules and guidelines for the proper availment of the 
services of the Hospital Care Program including limits to the amount of service 
and medicine that can be availed, amendments to the coverage and other 
relevant aspects of the program; 
e) To amend the contributions to the cost sharing scheme to make it 
more responsive to the needs of the Hospital Care Program and other external 
factors; 
9 To set the guidelines for the accreditation of the health facilities; 
g) To negotiate and enter into contracts with health care institutions, 
health professionals and other juridical or natural persons regarding the 
financing, payments, pricing design and administrative systems and procedures 
necessary for the delivery of the services of the Hospital Care Program; 
h) To collect, deposit, administer and disburse the Trust fund in 
accordance with the provisions of this Act; 
i) To monitor and inspect the delivery of services to ensure the 
appropriate delivery of quality hospital service and make certain the satisfaction 
of the beneficiaries; 
j) To solicit, receive and manage grants, donations and other forms of 
assistance; 
k) To organize its office, fix the compensation of and appoint personnel 
as may be deemed necessary for the successful implementation of the Hospital 
Care Program; and 
I) To submit a report on the financial condition and status of operations 
for the Hospital Care Program to the Sangguniang Panlalawigan or Sangguniang 
Bayan of all municipalities. The reports shall likewise be posted in every 
municipality and made available to the beneficiaries. 
SEC. 7. The Hospital Care Program. - There shall be created a Hospital 
Care Program in every province or city which shall provide the following services 
to their residents: 
a) In-patient Hospital Care 
1. room and board; 
2. services of health care professionals; 
3. diagnostic, laboratory and other medical examinations; 
4. use of surgical or medical equipment and facilities; and 
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5. prescription drugs and biologicals, subject to limitations set forth. 
b) Outpatient Care 
1, services of health care professionals; 
2. diagnostic, laboratory, and other medical examination services; 
3. personal preventive services; and 
4. prescription drugs and biologicals, subject to limitations set forth. 
The following treatments shall be excluded from the coverage of the 
a) eyeglasses and optometric services; 
b) dental examinations and dentures; 
c) expensive and sophisticated procedures such as CT scans and the 
Hospital Care Program: 
like; 
d) cosmetic procedures and surgery; 
e) non-prescription drug and devices; 
9 drug and alcohol abuse and dependency; 
g) other ailments as may be declared by the Board of Trustees. 
SEC. 8. Accreditation of Health Facilities. -The Board of Trustees shall 
ensure that health facilities shall be available for the Hospital Care Program. All 
government health facilities shall participate in the program and in addition, 
private health facilities shall be accredited to provide services for the program. 
Sec. 9. Enrolment Beneficiaries. - Every barangay shall enroll their 
residents in the Hospital Care Program. The barangay captain shall certify that 
the person to be enrolled is a resident of the barangay based on official records 
such as the municipal civil registry, community tax certificates and others. 
The municipal local treasurers in coordination with the barangay 
treasurers shall collect the contributions of the residents and remit them to the 
provincial or city treasurer. 
SEC. I O .  The Department of Health. - The DOH shall maintain its 
subsidy for indigent patients who are for confinement in specialty hospitals as 
well as the other hospitals under its jurisdiction. Said hospitals shall be covered 
by the cost-sharing scheme. 
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SEC. 11. SeparabiMy Cause. - If any section or provision of this Act is 
declared unconstitutional, the rest of the provisions not affected thereby shall 
continue to be valid. 
SEC. 12. Repealing Clause. - All laws, as well as pertinent rules and 
regulations thereof, which are inconsistent with the provisions of this Code, are 
hereby repealed or amended accordingly. 
SEC. 13. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in two (2) newspapers of general circulation. 
Approved, 
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