REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES RE * RECEVED
Quezon City DATE:
THE Es yy
EIGHTEENTH CONGRESS : ——h—,

First Regular Session

House Bill No. 1969

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

EXPLANATORY NOTE

Government hospitals, while receiving subsidy from the National Government, cannot utilize
their income for their maintenance and other operating expenses, Similar to other income
generating agencies of the government, these hospitals are required by law to remit their
income back to the national treasury.

This practice of disallowing government hospitals from spending their income for MOOE
limits the hospital's capability to expand and improve. It is precisely the primary reason that
government hospitals fail to deliver quality and efficient basic health services for the people

In view of this counterproductive system, this representation is filing this proposed measure
to give more meaning to the autonomy of government hospitals in the area of physical and
operational development. This can be achieved by granting them the authority to utilize their
income for their maintenance and other operating expenses.

In view of the foregoing, the immediate approval of this measure is earnestly sought.

MANU CHAN HE
Represent
Magdalo Para sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES,
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

House Bill No. 1969

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN II __

AN ACT
AUTHORIZING GOVERNMENT HOSPITALS UNDER THE DEPARTMENT OF
HEALTH (DOH) TO RETAIN AND UTILIZE ALL THEIR INCOME AND
INTEREST DERIVED FROM DEPOSITS, FOR MAINTENANCE AND OTHER
OPERATING EXPENSES, CAPITAL OUTLAYS AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Utilization of Hospital Income. - Ail government hospitals under the
Department of Health (DOH) are hereby authorized to retain and utilize One hundred percent
(100%) of their income, which include hospital fees from in-house services and facilities,
income derived from non-patient related services such as rental fees, parking fees,
affiliation/medical/professional fees, interview and tour fees, and income derived from
interest on account deposits, without necessarily remitting the same to the Bureau of
Treasury,

SEC. 2. Trust Fund. - A trust fund constituting the income collected shall be
established for the maintenance and other operating expenses, capital outlays for the purpose
of equipment and infrastructure projects including construction, improvement and/or
renovation of hospital facility and for other purposes recommended by the Board of the said
hospital: Provided, That pharmacy income or proceeds from the sale of drugs and medicines
and laboratory income shall be considered as a revolving fund and shall be specifically
utilized by the hospital pharmacy and laboratory for purposes as may be determined by the
DOH: Provided, further, That no amount of the said income shall be used for payment of
salaries and other allowances of employees.

The trust fund shall be deposited in an authorized government depository bank/s
recommended by the DOH, the Department of Finance (DOF) and the Department of Budget
and Management (DBM),

SEC. 3. Hospital Board. - There shall be established a board in each national hospital
retained under the DOH with the chief or head of the hospital concerned as chairman and the
following as members:

1) A senator;

2) A congressman of the congressional district where the hospital is located;


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A representative of the Philippine Hospital Association (PHA);

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A representative of the Philippine Medical Association (PMA);

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A representative of nongovernment organizations (NGOs) involved in health
services;

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A representative of the religious sector;
7) A representative of the private sector; and

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A representative of the rank and file employees.

The Chairman of the Senate Committee on Health shall choose from among the
senators who shall represent the Senate as a member of each of the retained national hospital
health board.

The representatives from the PHA, the PMA and NGOs involved in health services,
religious sector and private sector in the hospital health boards shall be appointed by the
chairman of the respective health boards. The representative of the rank and file employees
shall be voted upon by the entire members of the rank and file

The hospital health board shall monitor the collection and determine the utilization of
the hospital income, and perform such other functions as may be deemed necessary for the
effective management of the said income

The Board shall meet at least once a week or as often as may be necessary.A majority
of the members of the board shall be present during meetings when income utilization
proposals are prepared and considered,

Members thereof who are not government officials or employees shall be entitled to
necessary traveling expenses and allowances chargeable against the funds.

SEC. 4, Audit and Reports. - Expenditures under this Act shall be subject to existing
auditing rules and regulations. In addition, the retained hospitals shall submit quarterly
reports of income and utilization thereof to the DBM and the Committee on Health of both
Houses of Congress.

SEC. 5. Implementing Rules and Regulations. - The DOH, in coordination with the
DOF, the DBM and the Commission on Audit (COA), shall formulate the necessary rules and
regulations for the effective implementation of this Act within sixty (60) days from its
approval.

SEC. 6. Separability Clause. - If any provision of this Act is held invalid by a
competent court, any other provision not affected thereby shall continue to be valid and
effective.


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SEC. 7. Repealing Clause. - Any laws, presidential decree, executive orders and
letters of instruction which are inconsistent with any of the provisions of this Act are hereby
repealed or amended accordingly.

SEC. 8. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or at least two (2) newspapers of general circulation.

Approved,