FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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SENATE 
S. B. No. 2592 
Introduced by SENATOR EDGARDO J. ANGARA 
EXPLANATORY NOTE 
The State recognizes health as a basic human right. Article 11, Section 15 of the 1987 
Constitution provides that: 
The State shall protect and promote the right to health of the people and 
instill health consciousness among them. 
Although this right is guaranteed by the 1987 Constitution, access to health care system 
in the Philippines especially by the poor is still hampered by financial, physical, social 
and cultural barriers. 
To help achieve the country's vision of universal primary health care services, it is not 
enough to be contented with the present capacity of the country's health care system. It 
is important to build the country's capability for research and development because 
these can fuel the necessary innovation that will lead to a responsive and efficient 
health care system. 
To achieve this, the country must provide for a favorable research environment wherein 
government agencies, non-government organizations, public and private hospitals, 
academic institutions and private agencies can optimize their research activities. 
However, a closer scrutiny at the present system would reveal that current researches 
are uncoordinated, fragmented and duplicated which precludes the optimal use of time, 
effort and resources. 
The proposed Philippine National Health Research System bill will address these 
current problems by institutionalizing the Philippine National Health Research System 
(PNHRS) and create the Philippine National Health Research Fund (PNHRF). 
PNHRS if recognized and institutionalized by statutory mandate shall serve the 
following functions: 
Develop a national and global network of researchers, research 
Build capacities 
for health research and development activities and 
Produce new knowledge through research; 
organizations, and other members of the health research community; 
Secure sustainable financing for health research and development; 
encourage individuals to pursue research as a career; 
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Inculcate internationally and culturally accepted ethical standards and 
principles especially in researches involving human subjects and 
participants; 
Deepen the involvement of stakeholders; 
Ensure public access to the information and other outputs generated by the 
health research systems; and 
Encourage the utilization of research results in the form of products, 
technologies, programs and services 
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 & D) 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. 
Approval of this bill is earnestly sought. 
Senator 
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FOURTEENTH CONGRESS OF THE 
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Second Regular Session 
1 1 
t3 SEP -2 76 ‘ ’ 
REPUBLIC OF THE PHILIPPINES 
SENATE 
~~~~~~i~~~ Bv 
S. B. No. 
Introduced by SENATOR EDGARDO J. ANGARA 
AN ACT 
INSTITUTIONALIZING THE PHILIPPINE NATIONAL HEALTH RESEARCH SYSTEM, 
ESTABLISHING THE PHILIPPINE NATIONAL HEALTH RESEARCH FUND 
PROVIDING FOR ITS ADMINISTRATION AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
Article 1 
SECTION 1. Short Title. This Act shall be known as the “Philippine National Health 
Research System Act of 2008.” 
SECTION 2. Declaration of Policy. It is hereby declared the policy of the State to: 
(A) protect and promote the right of health to the people and instill health 
consciousness among them: and 
(B) improve the quality of life of every Filipino through health research and 
development initiatives. 
SECTION 3. Definition of Terms. 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. 
(B) “Research and development (R & D) for health” - generation of knowledge 
to identify and deal with health problems, health system and policies as well 
as those that impact on health. 
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(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, 
which connect to, and converge with, the wider health, economic, political, 
educational and science and technology (S & T) systems of the country. 
(D) “National Unified Health Research Agenda” contains the research priorities 
determined by the country’s stakeholders which serve the health needs of 
the population especially the marginalized, disadvantaged and those with 
special needs. This agenda is a platform to advocate for local, national, and 
international support. 
(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), University of the Philippines 
Manila - 
National Institutes of Health ((UPM-NIH), and the Commission on Higher 
Education (CHED). 
(F) “Philippine National Health Research Fund (PNHRF)” refers to a special 
fund which by legislative action, segregates specified revenues for health 
research purposes. 
(G) “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. 
(H) “Management of Fund” - involves the generation, allocation and utilization, 
of the PNHRF, including government and non-government sources, and 
both domestic and international sources. 
Article 2 
The Philippine National Health Research System 
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SECTION 4. 
Creation of the Philimine National Health Research System. The 
Philippine National Health Research System (PNHRS) is hereby constituted to improve 
the health status, productivity, and the quality of life of Filipinos by: 
(1 1 
(2) 
(3) 
(4) 
SECTION 
Governing 
Ensuring that health research is linked to the health system needs;; 
Ensuring that investments in health research yield the most benefit; 
Promoting good governance in research towards high performing and 
ethical health research organizations; 
Engaging in national and international partnerships and networks for health 
research development. 
5. Composition of the PNHRS. The PNHRS shall be composed of the 
Council (GC), Steering Committee, the Technical Working Committees 
(TWC), the Secretariat, 
and the whole 
health 
research community. The 
interrelationships among these various components shall be described in the IRR of this 
Act. 
SECTION 6. Creation of the PNHRS Governing Council. The PNHRS GC, whose 
functions are enumerated in Section 7 shall be composed of the following: 
(1) The Secretary of the Department of Science and Technolocry (m); 
(2) The Secretary of the Department of Health (m) 
or hislher designated 
permanent representative; 
(3) The Chair of the Commission on Hiqher Education (w); 
(4) The Chancellor of the University of the Philippines Manila (m); 
(5) The National Nutrition Council Director; 
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(6) The PCHRD Director; 
(7) President of the Philippine Health Insurance Corporation (w); 
(8) The Director General of the National Economic Development Aqency 
w!2"EDA 
(9) The Professionals Regulation Commission (PRC) Chairperson 
(1 0) Representative from the Philippine health industry; 
(1 1) Representative from a non-qovernment oraanization (NGO); 
(1 2) Representative from Academe; 
(13) Representative from Leaaue of Governors; and 
(14) Representative from the Reaional Health Research Svstem. 
Representatives 1-9 shall serve as Ex-Officio Members while those mentioned in 
numbers 10 to 14 shall be nominated by the core agencies, and appointed by the 
President of the Philippines for a term of three (3) years; provided however, that for 
those first appointed representatives from Philippine health industry, NGO network and 
academe shall serve for three (3) years and those first appointed representatives from 
the League of Governors and the Regional Health Research Development Committees 
shall serve for two (2) years. The qualifications of the representatives mentioned in 
subparagraphs 10-14 shall be provided for in the Implementing Rules and Regulations 
of this Act. 
Majority of the members of the GC shall constitute a quorum in all meetings. 
SECTION 7. Functions of the PNHRS Governing Council. The PNHRS GC shall: 
(1) set policies and directions for the PNHRS; 
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periodically review and approve the long-term plans and programs of the 
PNHRS: 
evaluate and approve the National Unified Health Research Agenda 
developed and integrated by the Core Agencies, and identify areas that will 
serve as the foci of the National Health Research Agenda: 
establish the criteria for stakeholders that can apply for grants for the 
approval of projects and programs: 
approve investments of the PNHRF created under Section 1 I 
of this Act; 
review, grants and/or donations to any government agency relative to health 
research from domestic and international funding agencies; 
review and approve research projects and programs; 
create committees as the need arises. 
SECTION 8. Creation/Functions of the Steering Commiffee. The GC shall create the 
Steering Committee composed of the six (6) PNHRS Technical Working Committee 
Chairs. The functions of the Steering Committee are: 
(1) 
recommend policies to the Governing Council: 
(2) 
perform oversight function on the implementation of PNHRS activities; 
(3) 
coordinate activities of the six (6) PNHRS committees, and 
(4) monitor and report the progress of the committees’ programs to the 
Governing Council. 
Section 9. Creation PNHRS Committees. 
The GC shall create the following 
Committees composed of representatives from the Core Agencies and various 
stakeholders: 
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(1) Research Management - 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) Ethics - ensure adherence to universal ethical principles and values on the 
dignity of health research participants; 
(3) Capacity Building - provide technical and policy advice in the development 
and continuous supply of quality human and institutional resources for 
health research: 
(4) Structure, Organization, Monitoring and Evaluation - 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 action; 
(5) Research Utilization - 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; 
(6) Resource Mobilization - provide technical and policy advice/support to 
secure sustainable financing, and ensure equity, effective and efficient use 
of resources for health research and development. 
The Committees shall develop, implement, and monitor their respective strategic plans. 
Section 10. The Executive Director and Secretariat. The PCHRD Executive Director 
shall be the PNHRS Executive Director, responsible for, among others, the coordination 
and oversight functions of the System assisted by the PCHRD secretariat. 
Article 3 
The Philippine National Health Research Fund 
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SECTION 11. Creafion and Nafure of fhe Philippjne Nafional Healfh Research Fund. 
A Special Research Fund hereinafter called the Philippine National Health Research 
Fund (PNHRF) is hereby created under the management of the GC through the 
Secretariat. 
The PNHRF shall not be used for purposes other than those provided in Section 12 of 
this Act. Moreover, no portion of the funds of the PNHRS or income thereof shall accrue 
to the General Fund of the national government and its political subdivisions, 
instrumentalities and other agencies including government-owned and controlled 
corporations except as may be allowed under this Act. 
SECTION 12. Uses of the PNHRF. 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 be utilized for any or all of, but not limited to, the following: 
support quality ethical research and the application of ethical principles to 
health research and development activities; 
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 to the improvement of people's health in the 
country and the world; 
fulfill an integrated health research agenda across disciplines, sectors and 
regions that reflect the emerging health needs of Filipinos and the evolution 
of the health system, and supports'health policy decision-making; 
ensure the promotion research undertakings that meet the highest 
international scientific standards of excellence and ethics and that pertain 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 and environmental influences on 
health; 
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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 wellness strategies; 
promote the 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 PNHRF and Mefhod of Collecfion. 
(1) The PNHRF shall be sourced out from the following agencies, but not limited 
to: 
a. One percent (a) 
of the gross annual revenue collected by the PHlC 
from premium payments until the PNHRF reaches the sum of 10 Bilion 
pesos; 
b. Five percent (5%) of the annual revenue collected by the National 
Statistics Office (E) 
from birth certificate issuances; 
c. Fifteen percent (15%) 
of the total fees collected by the Professional 
Reaulation Commission (E) 
from the issuance and renewal of 
licenses of health professionals such as but not limited to physicians, 
nurses, dentists, pharmacists, medical technologists, midwives, 
dieticians, and veterinarians; 
d. Any other appropriations from the General Appropriations Act; and 
e. Donations and grants from domestic and international sources duly 
accepted/approved by the GC which do not constitute a breach of the 
Philippine laws and recognized international treaties. 
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(2) All agencies mentioned in the preceding paragraph are hereby directed to 
automatically remit semi-annually the amount prescribed by this Act to the 
specified account established by the GC on or before the 31" day of 
January and July of each year. This does not preclude the agencies from 
making advance contributions provided they fall within the specifications of 
this act. 
(3) The rates indicated in Paragraph 1 hereof shall be reviewed and updated 
every five (5) years. 
SECTION 14. Management and Allocation of Fund 
(I) 
The GC through the secretariat shall manage the funds in accordance with 
generally accepted auditing standards; 
(2) The GC shall allocate two percent (2%) from the fund for research 
operational expenses. 
(3) The GC is authorized to invest the PNHRF that was not allocated/obligated 
during the current year in any of the following: 
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 
are 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 
Banoko Sentral nu Pilipinas (Bsp); 
and 
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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 the 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. 
(4) The GC shall allocate not less than sixty percent (a) 
but not more than 
seventy five percent (75%) to priority research programs and agenda as 
defined by the National Unified Health Research Agenda and to UPM-NIH, 
as lead implementing agency for health research, not less than twenty five 
percent (25%) but not more than fortv percent (40%) of the funds. 
(5) 
The GC, through the Secretariat shall submit periodic reports to agencies 
mentioned in Section 6 on the use of the PNHRF. 
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SECTION 15. Creation of the Investment Advisory Group. 
(1) An 
Investment Advisory Group is hereby established to 
make 
recommendations to the GC on matters of investments from the PNHRF. 
The group shall recommend the method of investment that will yield the 
highest return for the PNHRF. 
(2) The advisory group shall be composed of the Representatives of the Core 
Agencies to be appointed by their respective heads and any three of the 
following, for a term of three (3) years: 
a. An economist or market analyst with extensive knowledge of the 
financial and stock markets: 
b. A representative from the Bangko Sentral ng Pilipinas (Bsp); 
c. A member from the Philippine Bar; 
d. A representative from the research community. 
Provided that the representative from the Bsp shall always be a member of the 
Advisory Group. 
Article 4 
Final Provisions 
SECTION 16. Monitoring, Evaluation, Accountabilities, and Annual Report. Regular 
monitoring and evaluation mechanism shall be done by the GC through the secretariat 
to determine the accountabilities of the System to the Contributing Agencies. The 
specifics/details of monitoring, evaluation, accountabilities and annual reporting shall be 
provided for in the Implementing Rules and Regulations of this Act. 
SECTION 17. 
lmplemenfing Rules and Regulation. The Core Agencies shall 
promulgate the implementing rules and regulations of this Act within a year after the 
effectivity hereof. 
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SECTION 18. Separabilify 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 19. 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 20. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
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Approved, 
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