Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
House Bill No._______
Introduced by Rep. BERNADETTE "BH" HERRERA-DY
EXPLANATORY NOTE
The constitution under Article 11, Section 15 of the 1987 Constitution thereof
provides that the State shall protect and promote the right to health or the people and
instill health consciousness among them.
As a partner in promoting people's health, the government must provide assistance
to private hospitals to ensure their viability and high quality service.
Seventy percent (70%) of the country's hospitals are privately owned. Distributed
to the different areas of the country, these institutions provide the much needed medical
services and facilities that government hospitals cannot alone provide thereby filling a
void in the people's health needs.
This legislation proposes a Private Hospital Development Plan, which will be
drawn in coordination with the Department of Health, other appropriate government
agencies, and non-government organizations. This plan shall monitor the needs of private
hospitals in terms of facility, equipment, and human resources. It shall also grant tax
incentives to accredited private hospitals.
This bill likewise proposes the creation of a Special Private Hospital Fund that
will be sourced from real property taxes paid by private hospitals. The money collected
shall be used to finance the improvement of private hospital facilities and to assist
community-based projects in various localities. This fund shall be managed and
July 5, 2022
3:43 pm
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disbursed by the local health board in each municipality or chartered city where the
private hospital is located.
Through this bill, we hope to build a bridge of cooperation between the
Government and private hospitals. It shall provide the needed link between the
public's ever growing, health care needs and the advanced medical services that can
be provided by private hospitals.
The immediate passage of this bill is therefore requested.
BERNADETTE HERRERA-DY


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
First Regular Session
House Bill No._________
Introduced by Rep. BERNADETTE "BH" HERRERA-DY
AN ACT ESTABLISHING A PRIVATE-HOSPITAL DEVELOPMENT
PLAN AND PROVIDING ASSISTANCE TO PRIVATE HOSPITALS BY GRANTING
OF INCENTIVES
Be it enacted by the Senate and House of Representatives the Philippines in
Congress assembled:
SECTION 1. Title. - This Act shall be known as the 'Private Hospital Assistance
Act of 2019."
SECTION 2. Declaration of Policy - It is the policy of the State to provide
assistance to private hospitals to ensure their viability and enable them to
continue giving quality service to the people. Towards this end, a private
hospital development plan shall be promulgated and the private hospital fund
established.
l. PRIVATE HOSPITAL DEVELOPMENT PLAN
SECTION 3. The Private Hospital Development Plan. The Department of
Health in consultation with the other appropriate government agencies, the
Philippine Hospital Association, and non-government organizations, shall draw
up a Private Hospital Development Plan that shall:
1.
Assess the prevailing situation in certain localities and identify its needs
in terms of facility, equipment and human resources; provide incentives for, and
establish agreements and linkages with private hospitals and clinics, to answer
these needs;
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2.
Identify unserved or underserved areas in terms of secondary and tertiary
care where private hospitals can be established and, in collaboration with other
government agencies, provide proper incentives for the same;
3.
Promulgate rules and regulations regarding the number, composition and
other matters relating to the creation of the Private Hospital Board as provided
for in Section 5 of this Act;
4.
Establish guidelines for better coordination and cooperation between
government and private hospital systems in the country so as to provide better
quality medical services to more people needing medical attention.
ll. CREATION OF THE PRIVATE HOSPITAL FUND AND BOARD
SECTION 4. Private Hospital Fund. - Al] proceeds from the payment of real
property taxes of private hospitals shall accrue to a special Private Hospital Fund
which shall be used for the following purposes:
a)
Improvement of hospital facilities to accommodate more service ward
patients; and
b)
Financial assistance to community-based health projects in the locality.
SECTION 5. The Private hospital Fund Board. - The private hospital fund shall be
managed and disbursed by a local Board which shall be constituted in each
municipality or chartered city with private hospitals, and shall be composed of:
a)
The Mayor of the municipality or chartered city as Chairperson:.
b)
A director from every private hospital in the municipality or city:
c)
The municipal or city health officer;
D) Two (2)
representatives
or
the
private
sector
or
non-governmental
organizations.
The. members of this Board shall be chosen in accordance with implementing rules
and regulations to be issued by the Secretary of Health. The Private Hospital Board
shall adopt its own rules and regulations, which shall enable it to finance the
activities, provided for in Section 4 or this Act.
SECTION 6. Audit of the Private Hospital Fund. - The disbursement of the Private
Hospital Fund shall be subject to audit by the Commission on Audit.


SECTION 7. Repealing Clause. - Any provision of law, rules and regulations
inconsistent with this Act is hereby repealed or modified accordingly.
SECTION 8. Effectivity - This Act shall take effect fifteen (15) days from its
publication in the Official Gazette or in two (2) national newspapers of general
circulation.
Approved,