•ffiiii' 01 'ill'
TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
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SENATE 
S. No. 740
25 JUL21 PI :41
Ri:CL'VtD 5V
Introduced by Senator JV Ejercito
AN ACT
MODERNIZING THE REGULATION OF HEALTH FACILITIES AND SERVICES 
AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE "HOSPITAL 
LICENSURE ACT"
EXPLANATORY NOTE
Our hospitals, clinics and health centers are not mere structures but a testament 
of how we value the health and wellbeing of our people. They are symbols of our 
government's commitment to provide the necessary medical facilities necessary for 
our communities to live a healthy and fruitful life.
Health infrastructures are lifelines for patients in need of medical attention. Any 
slight vulnerability of these facilities that may be cause by outdated standards may 
compromise the proper and efficient delivery of health services to patients. Strict 
regulations must be put in place, much more today, in the time of modern innovations 
and technological advancements in the field of health care.
The greater demand for competent and modernized hospitals has never become 
more than justifiable. Recent health crises exposed the weaknesses in health care 
system and revealed the urgent need to update our standards in the field of health 
infrastructure. As we continue our campaign to be economically competitive in the 
ASEAN region, it is only logical to heavily invest in the health of our workforce.


Most importantly, the primary purpose of regulating hospitals and health facilities 
IS to ensure the delivery of best health care services available to our people. Filipinos 
deserve the highest level of safety, accountability and care a medical facility can offer.
It is with high hopes that this bill will contribute in our continued quest for a 
better health care system that is people-centered. We embrace emerging technologies 
that promises to prolong the lives of patients that is why we are in the beiief that our 
health laws must constantly updated to adapt to the ever-changing development and 
discoveries in medical science. Our hospitals and medical facilities should always be 
up to date and be able to meet the minimum standards of modern times.
This measure renames the Facilities and Services Regulatory Bureau (HFSRB) 
into the Bureau of Health Facilities and Services (BHFS) of the Department of Health 
(DOH) and expands its roles and responsibilities. To maximize the potential of every 
hospital and medical facilities, they must be regulated accordingly. Regulation is a 
mechanism for our government to check whether hospitals are capable of providing 
the optimum service possible for their patients.
Our purpose for furthering this piece of legislation goes beyond licensing but the 
more so, the introduction of reforms by setting the proper guidelines in the aspect of 
establishing and maintaining hospitals and health facilities. The goal is not to 
emphasize on the shortcomings but to foster progress through government 
intervention by way of legislation.
In view of the foregoing, the passage of this bill is earnestly sought.
JV EJERCITO


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i.Off.t!' c!
TWENnETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
s/no._71Q.
25 JUL 21 P1 :41
Rt:CEiw''i-j ..
Introduced by Senator JV Ejercito
AN ACT
MODERNIZING THE REGULATION OF HEALTH FACILITIES AND SERVICES 
AND APPROPRIATING FUNDS THEREFOR, REPEALING FOR THE PURPOSE 
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE "HOSPITAL 
LICENSURE ACT"
Be it enacted by the Senate and the House of Representatives of the Phiiippines, in Conaress 
assembied:
Act".
Section 1. Short Tide. - This Act shall be known as the "Health Facilities Regulation
Sec. 2. Definition of Terms. - For purposes of this Act, the following terms are hereby 
defined as follows:
a) Health Facilities refer to institutions whether stationary or mobile, land 
based OR otherwise and other health related establishments which provide 
diagnostic, therapeutic, rehabilitative, and other health care services except 
hospital pharmacies;
b) License refers to a formal authorization issued by the Department of Health 
(DOH) to an individual, partnership, corporation or association to operate a 
health facilities or services. It is a prerequisite for accreditation of a hospital 
and
other health facilities by any accrediting body that is recognized by the DOH;
c) Licensee refers to the person, partnership, corporation, cooperative or 
association granted a license to operate and maintain a health facility or 
services according to an approved standard set by the Bureau;


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d) Department of Health-Permit to Construct (DOH-PTQ refers to a permit 
issued by DOH through HFSRB to an applicant who will establish and 
operate a hospital or other health facility, upon compliance with required 
documents set forth in this Order prior to the actual construction of the said 
facility. A DOH-PTC is also required for hospitals and other health facilities 
with substantial alteration, expansion, renovation, increase in the number 
of beds or for additional services (add-ons) beyond their service capability. 
It is a prerequisite for License to Operate; and
e) Registration refers to the act or process of entering information about a 
health facility into the records of the public health system
Sec. 3. Bureau of Health Facilities and Services (BHFS).- The Health Facilities and 
Services Regulatory Bureau (HFSRB) is hereby renamed as the Bureau of Health Facilities and 
Services (BHFS), herein referred to as the Bureau, which shall be created in the DOH. The 
Bureau shall be under the Office of the Secretary and shall have the following functions, 
powers and duties:
a) To promulgate, establish and prescribe rules, regulations, standards, 
requirements and specifications in the construction and operation of health 
facilities and impose penalties for violations of such;
b) To inspect and monitor all health facilities and other related facilities to 
ensure their continued compliance with the rules and regulations in 
accordance with this Act and to make recommendations to directors or 
administrators of health facilities for the correction of deficiencies found 
during the inspections;
c) To study and adopt a system of classifying health facilities and other related 
facilities in the Philippines;
d) To review and approve construction designs and plans for all health facilities 
including renovation or expansion of the same in accordance with the 
provisions of this Act;
e) To determine, levy, assess and collect the appropriate permit fee, 
registration fee, license fee and surcharges pertinent to the operation of 
facilities and services except in cases where charges or rates are established 
by international bodies or associations of which the Philippines is a


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participating member or by bodies recognized by the Philippine government 
as the proper arbiter of such charges or rates;
f) To coordinate and call the assistance of any department, office, agency or 
instrumentality of the national or local government and other entities 
concerned with any aspect involving health facilities for the effective 
implementation of this Act;
g) To maintain a register of health facilities and other related facilities with 
licenses indicating the name of the facility, address or location, 
classification, name of the director or administrator, ownership, number of 
authorized beds and such other pertinent data as may be necessary;
h) To promulgate and implement the rules and regulations governing the 
registration, licensure and operations of health facilities and related facilities 
and to periodically review and amend the same, subject to the approval of 
the Secretary and in consultation with the sectors concerned: Provided, That 
such rules and regulations shall be in accordance with the provisions of this 
Act;
i) To grant a certificate of license for the operation and maintenance of health 
facilities and services, and to suspend or revoke the same in accordance 
with the provisions of this Act;
j) To hire and train competent individuals and provide qualifications of 
personnel to be designated as reguiatory officers;
k) To submit yearly reports to the Secretary of Health, and the Chairpersons 
of the Committees on Health of both Houses of Congress; and
l) To Perform such other functions necessary to carry out the duties prescribed 
under this Act.
Sec. 4. Quasi-Judicia! Powers. - To carry out its tasks more effectively, the Bureau 
shall be vested with the following quasi-judicial powers:
a) To investigate, hear and decide administrative cases initiated by the Bureau 
or filed by any person against a health facility or health service 
establishment violating any provision of this Act and its implementing rules 
and regulations and to impose appropriate administrative sanctions or 
penalties provided in this Act;


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b) To promulgate rules governing the conduct of administrative hearings: 
Provided, That in such proceedings, the Bureau shall not be bound by the 
technical rules of evidence of the Rules of Court: Provided, further, That the 
latter may be applied in a suppletory manner;
c) To administer oaths and affirmations, and to issue subpoena duces tecum 
and ad testificandum, requiring the production of such books, contracts, 
correspondence, records, statement of accounts and other documents and 
the attendance and testimony of parties and witnesses, as may be material 
to the investigation being conducted by the Bureau;
d) To exercise contempt powers and impose appropriate penalties;
e) To cause the prosecution of all cases involving violations of this Act and its 
implementing rules and regulations, and
f) To summarily order the closure of health facilities and other related facilities 
operating without a license; and
g) To preventively suspend health facilities found during inspection' or 
monitoring to have committed gross violations of the standards or rules and 
regulations such as non-compliance to the approved construction design; 
any fraudulent, unscrupulous activities, false claims or misrepresentations; 
operating with unlicensed or unqualified health personnel; and the 
commission or omission of any act which may result to serious injury, 
permanent disability or loss of life of a patient or staff, or would compromise 
public safety
Sec. 5. Mandatory Conciliation-Mediation. - The Bureau shall exert all efforts towards 
the amicable settlement of an administrative case within its jurisdiction on or before the first 
hearing. Towards this end, it shall have the power to ask the assistance of relevant 
government officials and qualified private individuals to act as a compulsory mediator on cases 
referred to it.
Sec. 6. Registration and License. - The Bureau shall facilitate the delivery of high- 
quality and cost-effective healthcare by promoting competition among health facilities. 
Towards this end, all hospitals and other health facilities, government or private, shall be 
registered and duly licensed by the Bureau before such facilities are allowed to operate or be 
opened to the public. Both public and private health facilities shall be required to apply for the 
permit to construct and license to operate.


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Sec. 7. Organization. - The Director of the Bureau shall, subject to the approval of the 
Secretary of Health, organize its personnel in such divisions and units as will ensure efficiency 
and effectiveness:
The Bureau shall establish, operate and maintain a regional office in each of the 
administrative regions of the country to enforce regulatory policies and standards for the 
licensing, accreditation, and monitoring of health facilities to ensure quality health care.
In order to allow the Bureau to carry out its functions and responsibilities, the Secretary 
of Health shall hire additional personnel, as deemed necessary. The head of the Bureau shall 
make the necessay recommendations to the Secretay of Health regarding the number and 
competency of additional personnel to be hired.
Sec. 8. Minimum Quaiifications for Appointment as Chief Executive Officer, Chief 
Operating Officer, or Administrative Officer. - The Chief Executive Officer, Chief Operating 
Officer, or Administrative Officer of a hospital or health facility who shall be responsible for 
the overall management and administration of the hospital; formulation of policies, plans, 
programs and strategies to ensure implementation of health standards; and the day-to-day 
supervision of the functional units shall possesses any of the following minimum qualifications: 
a) formal baccalaureate degree, preferably with a master's degree in hospital administration 
or related course; or b) at least five (5) years of experience in a supervisoy or managerial 
position
Sec. 9. Ciassification of Hospitais and Other Health Faciiities. - The existing 
classification of hospitals and other health facilities including the system, rules and regulations 
governing their classification shall be subject to automatic review by the Bureau, in 
consultation with relevant stakeholders, within three (3) years from the effectivity of this Act 
and thereafter as it may deem necessay. It shall take into consideration the findings and 
recommendations made by Congress, if any, and the actual situation in dealing with the 
existing classification of hospitals and other health facilities for the purpose of protecting and 
promoting the health of the public by ensuring a minimum quality of service rendered by 
hospitals and other regulated health facilities and to assure the safey of patients and 
personnel.
Classification of health facilities and other related facilities shall only be made upon the 
approval of the Secretay of Health after mandatoy consultation with representatives from 
government and private hospital associations and patient organizations.
Sec. 10. Construction Design. - The Bureau shall review and approve the construction 
design and plans of health facilities or related facilities to be constructed or which shall


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undergo renovation or expansion.
An application for the construction design of a health facility or other related facility 
shall be submitted to the Bureau in a form prescribed by the latter and accompanied by a plan 
of the facility proposed to be constructed. The approved construction design and plan issued 
by the Bureau shall be a prerequisite for the issuance of a building permit by the official of 
the municipality or city where the facility is proposed to be constructed.
All level III government hospitals to be constructed shall include in its design the 
provision of geriatric ward.
Sec. 11. Application, Inspection, and Issuance of License to Operate (LTO). - All health 
facilities shall be duly licensed by the Bureau, in accordance with Republic Act No. 11032 or
the "Ease of Doing Business Act", before such facilities are allowed to operate or be opened 
to the public.
An application of a health facility for the issuance of a License to Operate including its 
medical ancillary services, shall be filed with the Bureau or its Regional office using the 
prescribed forms.
The LTO shall be issued upon due compliance of the applicant with the rules and 
regulations prescribed by the Bureau pursuant to the provisions of this Act. Provided, That 
the Bureau has conducted a comprehensive on-site inspection and has certified that the 
applicant has satisfactorily complied with the requisites prescribed in this Act and its 
implementing rules and regulations (IRR). Provided further, That an applicant shall get the 
approval of the Food and Drug Administration
(FDA) for its pharmacy or Philippine Nuclear Research Institute (PNRI) for medical radiation 
facility.
The FDA, PNRI, Department of Environment and Natural Resources (DENR) and other 
agencies involved in the regulation of health facilities shall employ a One- Stop Shop strategy 
in the processing of applications through systems that are accessible to the public.
Upon issuance of the LTO, a health facility shall be included in the Bureau's registry 
and in the National Health Facility Registry upon the approval of the DOH.
All licensed health facilities shall be automatically allowed to participate in the National 
Health Insurance Program.
Sec. 12. Validity and Renewal of License. - The initial license to operate and maintain 
a health facility or other related facility shall be valid for a period of three (3) years from its 
date of issuance, and shall be renewed regularly, subject to the rules and regulations to be 
issued by the Bureau.


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Sec. 13. Suspension and Revocation of License. - The Bureau, after conducting an 
administrative hearing, with due notice to the licensee, may suspend or revoke the license to 
operate and maintain a health facility or other related facility of any person, partnership, 
corporation or association for any of the following grounds:
a) Violation by the licensee of any provision of this Act or any other existing 
law;
b) Violation of rules and regulations prescribed in the implementation of this 
Act; and
c) Failure to make necessary corrections or adjustments required by the 
Bureau in the improvement or maintenance of facilities and services.
Sec. 14. Appeai. - The orders, rulings or decisions of the Bureau shall be appealable 
to the Secretary of Health.
Sec. 15. Separate Licenses Required. - Separate licenses shall be required for health 
facilities or other related facilities or branches thereof maintained in separate premises even 
though they are operated under the same management: Provided, however. That separate 
licenses shall not be required for separate buildings in the same compound: Provided, further. 
That the approval of the designs and plans for construction or renovation of buildings within 
the same compound shall also be secured from the Bureau to determine compliance with 
standards and requirements herein authorized.
Sec. 16. Non- Transferabiiity of License. - A license for the operation of a health facility 
or other related facility shall not be transferable. The Bureau shall be notified of any change 
in ownership, change of name of the health facility or other related facility. Transfer of location 
of the facility shall require an application for a new license.
SEC. 17. Penaities. Any person, partnership, association, or corporation who 
establishes, operates, conducts, manages or maintains a health facility or other related facility 
within the meaning of this Act without first obtaining a license, or violates any provision of 
this Act or its Implementing Rules and Regulations shall be liable to a fine of not less than 
Fifty Thousand Pesos (P50,000.00) but not to exceed One Hundred Tbousand Pesos 
(P100,000.00) for the first offense, not less than One Hundred Thousand Pesos (P100,000.00) 
but not to exceed Five Hundred Thousand Pesos (P500,000.00) for the second offense, and 
not less than Five Hundred Thousand Pesos (P500,000.00) but not to exceed One Million 
Pesos (P1,000,000.00) for the third and subsequent offenses. After the third offense, the 
license of the hospital shall be revoked. Each day that the health facility or other related facility 
operates after the first violation shall be considered a subsequent offense.


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In addition to the penalties specified in the preceding paragraph, the Bureau may 
summarily order the closure of any health facility or other related facility found operating 
without a license or revoke the license to operate of any health facility or other related facility 
after due process. Facilities may only re-apply for a new LTO one (1) year after revocation of 
its license.
Sec. 18. Income Retention. - To ensure that the Bureau shall have full authority to 
utilize its income and enhance its capacity to expand and to improve the quality of its services, 
it is hereby authorized to retain and utilize one hundred percent (100%) of its income 
generated from various fees and surcharges without remitting the same to the Bureau of 
Treasury.
In no case shall the retained income be used for the payment of salaries and other 
personnel benefits. The retained income shall be deposited in an authorized government 
depositary bank recommended by the Department of Health, the Department of Budget 
Management, and the Department of Finance.
Sec. 19. Appropriations. - The current appropriations of the DOH under the General 
Appropriations Act (GAA) shall be used to carry out the initial implementation of this Act. 
Thereafter, such sums as maybe necessary for the continued implementation, of this Act shall 
be included in the succeeding GAA.
Sec. 20. Mandatory Review. - Congress shall undertake a mandatory review of this Act 
at least once every five (5) years and as often as it may deem necessary, with the primary 
objective of overseeing the implementation of this Act and reviewing the accomplishments 
and the utilization of income of the Bureau.
Sec. 21. Impiementing Ruies and Reguiations.- The Secretary of Health, upon the 
recommendation of the Bureau, FDA, PNRI, and other concerned agencies and after 
consultation with recognized health facilities, associations, patients' organizations and other 
civil society organizations, shall issue the rules and regulations implementing the provisions 
of this Act within ninety (90) days from its effectivity.
Sec. 22. Separabiiity Ciause. - If any part or provision of this Act shall be held 
unconstitutional or invalid, other provisions hereof which are not affected shall continue to be 
in full force and effect, continue to be in full force and effect.
Sec. 23. Repealing Ciause. - Republic Act No. 4226, otherwise known as "Hospital 
Licensure Act," is hereby repealed. Presidential decrees, executive or rules and regulations 
and other issuances or parts thereof which are inconsistent with the provisions of this Act are 
hereby repealed, amended or modified accordingly.


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Sec. 24. Effectivity. - This Act shall take effect fifteen (15) days after publication in the
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Official Gazette or in any newspaper of general circulation.
Approved,