SIXTEENTH CONGRESS OFTHE ) 
REPUBLIC OF THE PIJILIPPINES ) 
Second Regular Session 
) 
SENATE 
'15 
FEB 16 P 3 :34 
__________ 
S_' B_N_O_2_6_5_4 _______ 
I_tl_~(_'''_~I_\'_ED BY: .. 0-',. 
Introduced by Senator TEOFISTO "TG" GUINGONA HI 
AN ACT STRENGTHENING THE REGULATION OF HEALTH FACILITIES AND 
SERVICES IN THE PHILIPPINES, REPEALING FOR THE PURPOSE 
REPUBLIC 
ACT NO 
4226, OTHERWISE KNOWN AS THE HOSPITAL 
LICENSURE ACT, 
AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
In pursuit of the Universal Health Care agenda, aside from expanding health 
insurance coverage, it is also important to ensure that health facilities reach a standard 
of adequacy and that they deliver quality health services to those needing health care. 
Changes and improvement in the field of health care during the past decades have led 
to the emergence and development of new types of health care facilities such as 
diagnostic, therapeutic and rehabilitative centers. As a result, a number of such types 
of facilities no longer qualify under the regulatory mandate of the Department of 
Health (DoH). 
This bill proposes to strengthen the regulation of health facilities and services by 
authorizing the Bureau of Health Facilities and Services (BHFS) of the Department of 
Health to: 
• 
Establish and prescribe rules, regulations, standards, etc 
• 
Inspect and monitor for continued compliance 
• 
Implement a classification system 
• 
Approve building plans and construction design 
• 
Provide advise 
• 
Collect fees 
• 
Conduct administrative hearing and impose penalties 
In view of the foregoing, immediate passage of this me'Y""''YJ,Y' earnestly sought. 


SIXTEENTH CONGRESS OFTHE 
) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
) 
SENATE 
S B No. 2654 
Introduced by Senatol' TEOFISTO "TG" GUlNGONA III 
'15 
fEB 16 P 3 :34 
AN ACT STRENGTHENING THE REGULATION OF HEALTH FACILITIES AND 
SERVICES IN THE PHILIPPINES, REPEALING FOR THE PURPOSE REPUBLIC 
ACT NO. 4226, OTHERWISE KNOWN AS THE HOSPITAL LICENSURE ACT, 
AND FOR OTHER PURPOSES 
He it enacted by the Senate and House of Representatives (If the Philippines in Congress 
assemh1ed: 
1 
Section 1. Short 7Itle. - This Act shall be known as the "Health Facilities Regulation Act". 
2 
3 
Sec. 2. Definitions. - As used in this Act: 
4 
a) Health facilities refer to institutions and other health-related establishments which 
5 
provide diagnostics, therapeutic, rehabilitative, and/or other health care services 
6 
except medical radiation facilities and hospital pharmacies; 
7 
b) License refers to a formal authorization issued by the Depattment of Health (DOH) to 
8 
an individual, partnership, corporation or association to operate a hospital and other 
9 
health facilities. It is a prerequisite for accreditation of a hospital and other health 
10 
facilities by any accrediting body that is recognized by the DOH, and 
11 
c) Ucensee refers to the person, partnership, corporation or association granted a license 
12 
to operate and maintain a health facility according to an approved standard set by the 
13 
Bureau. 
14 
15 
Sec. 3. Regulating Agency. - The Bureau of Health Facilities and Services (BHFS) shall act 
16 
as the regulatolY agency pertaining to the licensing and operation of health facilities and 
17 
services in the country. 


1 
2 
Sec. 4.l'owe/'s and hille/ions. - The BHFS shall have the following powers and functions: 
3 
a) To establish and prescribe rules, regulations, standards and specifications in all cases 
4 
related to the issued certificate of license of health facilities and other related facilities 
5 
and administer and enforce the same; 
6 
b) To inspect and monitor all health facilities and other related facilities to ensure their 
7 
continued compliance with the rules and regulations in accordance with this Act and 
8 
to make recommendations to directors or administrators of health facilities for the 
9 
correction of deficiencies found during the inspections, 
10 
c) To study and adopt a system of classifying health facilities and other related facilities 
11 
in the Philippines, 
12 
d) To approve construction designs and plans for health facilities, government or private, 
13 
including renovation or expansion of the same in accordance with the provisions of 
14 
this Act; 
15 
e) To provide consultative and advisory servIces relative to the establishment and 
16 
construction of health facilities and other related facilities; 
17 
!) To determine, levy, assess and collect the appropriate permit fee, registration fee, 
18 
license fee and surcharges pertinent to the operation of facilities and services except in 
19 
cases where charges or rate are established by international bodies or associations of 
20 
which the Philippines is a participating member or by bodies recognized by the 
21 
Philippine government as the proper arbiter of such charges or rates; 
22 
g) To coordinate and call the assistance of any department, office, agency or 
23 
instrumentally of the national or local government and other entities concerned with 
24 
any aspect involving health facilities for the effective implementation of this Act; 
25 
h) To maintain a register of health facilities and other related facilities with licenses 
26 
indicating the name of the facility, address or location, classification, name of the 
27 
director or administrator, ownership, number of authorized beds and such other 
28 
pertinent data as may be necessary; 
29 
i) To promulgate and implement the rules and regulations governing the registration, 
30 
licensure and operations of health facilities and other related facilities and to 
31 
periodically review and amend the same, subject to the approval of the Secretary and 
32 
in consultation with the sectors concerned: Provided, That such rules and regulations 
33 
shall be in accordance with the provisions of this Act; 
34 
j) To grant a certificate of license for the operation and maintenance of health facilities 
2 


, , 
1 
and services, and to suspend or revoke the same in accordance with the provisions of 
2 
this Act; 
3 
k) To submit yearly reports to the Secretary of Health, and the Chairpersons of the 
4 
Committees on Health of both Houses of Congress; and 
5 
I) 
Perform such other functions as may be prescribed by law. 
6 
7 
Sec. 5. Quasi-Judicial POlVers. - To carry out its tasks more effectively, the BHFS shall be 
8 
vested with the following quasi-judicial powers. 
9 
a) To investigate, hear and decide administrative cases initiated by the BHFS or filed by 
10 
any person against a hospital or health service establishment violating any provision 
11 
of this Act and its implementing rules and regulations and to impose appropriate 
12 
administrative sanctions or penalties provided in this Act; 
13 
b) To promulgate rules governing the conduct of administrative hearings: ProVIded, That 
14 
in such proceedings, the BHFS shall not be bound by the technical rules of evidence 
15 
of the Rules of Court: Prol'ided,further, That the latter may be applied in a suppletory 
16 
manner; 
17 
c) To administer oaths and affirmations, and to issue subpoena duces tecum and ad 
18 
testificandum, requiring the production of such books, contracts, correspondence, 
19 
records, statement of accounts and other documents and the attendance and testimony 
20 
of parties and witnesses, as may be material to the investigation being conducted by 
21 
the BHFS; 
22 
d) To exercise contempt powers and impose appropriate penalties, 
23 
e) To cause the prosecution of all cases involving violations of this Act and its 
24 
implementing rules and regulations, and 
25 
f) To summarily order the closure of health facilities and other related facilities 
26 
operating without a license. 
27 
28 
Sec. 6. Registration alld Uccnse. -
All health facil ities and other related facilities, 
29 
government or private, shall be registered and duly licensed by the BHFS before such 
30 
facilities 
are 
allowed 
to 
operated 
or 
be 
opened 
to 
the 
public 
31 
32 
Sec. 7. Cons/mc/ion Design. - The Bf-Il'S shall review and approve the construction design 
33 
and plans of government or private health facilities and other related facil ities to be 
34 
constructed ot which shall undergo renovation or expansion. 
3 


1 
An application for the construction design of a health facility or other related facility 
2 
shall be submitted to the BHFS in a form prescribed by the latter and accompanied by a plan 
3 
of the facility proposed to be constructed The approved construction design and plan issued 
4 
by the Bureau shall be a prerequisite for the issuance of a building permit by the official of 
5 
the municipality or city where the facility is proposed to be contructed. 
6 
7 
Sec. 8. ApplicationjiJr Registration and IsslIance '!f Tlcense. - An application for registration 
8 
of a health facility prother related facility and for the issuance of a license for its operation 
9 
and maintenance, including that of a facility performing medical ancillary services, shall be 
10 
filed with the BHFS or its deputized office using the form prescribed by it: Provided, That an 
11 
applicant for a license to operate and maintain a hospital pharmacy or a medical radiation 
12 
facility shall seek the appoval of the Food and Drug Administration (FDA) and the Philippine 
13 
Nuclear Research Institute (PNRI), respectively. The application for registration shall be tiled 
14 
and a license shall be issued upon due compliance of the applicnt with the rules and 
15 
regulations prescribed by the BHFS pursuant to the provisions of this Act. 
16 
17 
Sec. 9. Validity and Renewal (!f Ucel1se. - The initial license to operate and maintain a health 
18 
facility or other related facility shall be valid for a period of two (3) years from date of 
19 
issuance, and shall be renewed regularly, subject to the rules and regulations to be issued by 
20 
the BHFS. 
21 
22 
Sec. 10. jl1.ljJecliol1. - The license to operate and maintain a health facility or other related 
23 
facility shall be issued by the BHFS only after it has conducted a comprehensive on-site 
24 
inspection and has certified that the applicant has satisfactorily complied with the requisites 
25 
prescribed in this Act and its implementing rules and regulations (lRR). 
26 
27 
Sec. 11. SII,\pension alld Revocation '!f Ucense. -
The BHFS, after conducting an 
28 
administrative hearing, with due notice to the licensee, may suspend or revoke the license to 
29 
operate and maintain a health facility or other related facility of any person, partnership, 
30 
corporation or association for any of the following grounds: 
31 
a) Violation by the licensee of any provision of this Act or any other existing law; 
32 
b) Violation of rules and regulations prescribed in the implementation of this Act, and 
33 
c) Failure to make necessary corrections or adjustments required by the BHFS in the 
34 
improvement or maintenance of facilities and services. 
4 


1 
2 
Sec. 12. Appeal. - The orders, rulings or decisions of the BHFS shall be appealable to the 
3 
Secretary of Health. 
4 
5 
Sec. 13. Separate Uccnscs Reqllired -
Separated licenses shall be required for health 
6 
facilities and other related facilities or branches thereof maintained in separate premises even 
7 
though they are operated under the same management: Provided, however, That separate 
8 
licenses shall not be required for separate buildings in the same compound: Provided, jill'/her, 
9 
That the approval of the designs and plans for construction or renovation of buildings within 
10 
the same compound shall also be secured t1'om the BHFS to determine compliance with 
11 
standards and requirements herein authorized. 
12 
13 
Sec. 14. Non/ran.'iferabili/y fif Ucellse. - A license for the operation of a health facility or 
14 
other related facility shall not be transferable. The BHFS shall be notified of any change in 
15 
ownership, change of name of the health facility or other related facility Transfer of location 
16 
of the facility shall require an application for a new license. 
17 
18 
Sec. 15. Penal/ies. - Any person, partnership, association or corporation who establishes, 
19 
operates, conducts, manages or maintains a health facility or other related facility within the 
20 
meaning of this Act without first obtaining a license, or violates any provision of this Act or 
21 
its IRR shall be liable to a tine of not less than Fifty thousand pesos (PSO,OOO.OO) but not to 
22 
exceed One hundred thousand pesos (P I 00,000.00) for the first offense, not less than One 
23 
hundred thousand pesos (P 100,000.00) but not to exceed Five hundred thousand pesos 
24 
(PSOO,OOO.OO) for (he second offense, and not less than Five hundred thousand pesos 
25 
(PSOO,OOO.OO) but not to exceed One million pesos (P I ,000,000.00) for the third and 
26 
subsequent offenses. Each day that the health facility or other related facility operates after 
27 
the first violation shall be considered a subsequent offense. 
28 
In addition to the penalties specified in the preceding paragraph, the Bureau may 
29 
summarily order the closure of any health facility or other related facility found operating 
30 
without a license. 
31 
32 
Sec. 16. Implemen/mg Rilles and Regllla/ions. - The Secretary of Health, upon the 
33 
recommendation of the BHFS, shall issue the necessary rules and regulations for its effective 
34 
implementation within sixty (60) days upon the effectivity of this Act. 
5 


1 
2 
Sec. 17. Separahility Clal/.\e. - If any part or provlslon of this Act shall be held 
3 
unconstitutional or invalid, other provisions hereof which are not affected shall continue to be 
4 
in full force and effect. 
5 
6 
Sec. 18. Repealing Clause. - Republic Act No 4226, otherwise known as the Hospital 
7 
Licensure Act, is hereby repealed. Presidential decrees, executive orders, rules and 
8 
regulations and other issuances or parts thereof, which are inconsistent with the provisions of 
9 
this Act are hereby repealed, amended or modified accordingly 
10 
11 
Sec. 19. Iiffeclivily. - This Act shall take effect fifteen (15) days after its publication in the 
12 
qlficial Gazelle or in any newspaper of general circulation. 
13 
14 
Approved,