Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS

First Regular Session

HOUSE BILL NO. 538

Introduced by Representative EDUARDO R. RAMA, JR.

EXPLANATORY NOTE
According to the International Society of Nephrology, between 8 to 10% of the adult population

five wiih sume foun uP kiducy damage, and uuiilious uf poupie die promaiuicly each yeat due
to complications related to kidney disease. Kidney diseases are linked to high healthcare costs,
poor quality of life, and serious adverse health outcomes.

In the Philippines, the price of one (1) hemodialysis session ranges from Two Thousand Pesos

ind! Pecos (P 7,000.00) per treatment. Patis

three (3) sessions per week. The cost of medical care for such a common disease is outrageous.

It is the policy of the State to protect and promote the right to health of the people. The State
recognizes the urgent need to consolidate and reinforce existing programs, strategies and efforts
at preventing, treating and rehabilitating people affected hy kidney dicences, and to undertake
research and training on the cure and prevention of kidney diseascs, through a Kidney Institute
which will provide quality and affordable medical care for Filipinos in need.

This House Bill seeks to create the Kidney Institute of Cebu, to provide materiaf and financial
support towards the establishment and maintenance. for the welfare and benefit of the Filipino
People.

‘Support for the enactment of this measure is earnestly requested.

REP. EDUARDO R. RAMA, JR.

2" District, City of Cebu


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Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

RESS

First Regular Session

HOUSE BILLNO. 538

Introduced by Representative EDUARDO R. RAMA, JR.

AN ACT CREATING THE KIDNEY INSTITUTE OF CEBU, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES

Be ié enucied by die Senuie und House uf Represeniuiives uf ihe Phitippines in Congress
assembled:

SECTION 1. Short Title.- This Act shall be known as the “Kidney Institute of Cebu Act”

SECTION 2. Creation of the Kidney Institute of Cebu.- There is hereby created a body
corporate, under the name Kidney Institute of Cebu, hereinafter referred to as the Institute,
which shall have its principal offices, hospitals, clinics and subsidiaries in the City of Cebu.

SECTION 7 Tay Evemptione and Privileges - The Inctinite ic herehy declared evempt
from all income and all other internal revenue taxes, tariffs, and customs duties and all other
kinds of taxes, fees and charges and assessments levied by the Government and its political
subdivisions, agencies and instrumentalities.

The President ot the Philippines, upon the recommendation ot the Secretary of Finance,
may partially or fully lift the exemption herein provided, if he shall determine that the Institute
is self-sustaining and financially capable of paying such taxes, customs duties, fees, charges
and other assessments, after providing for the debt service requirements and the projected
capital and operating expenditures of the Institute.

SECTION 4, Purposes and Objectives of the Institute.- The Institute shall be a non-
stuck, non-profit corporation organized primarily for the following purposes and objectives:


1 a. Toconstruct, establish, equip, maintain, administer and operate such integrated medical
2 institution or institutions that shall specialize in the prevention, diagnosis, treatment,
3 care, tchabiliiaiiun and/or ichiel uf Kiducy disease aud cd discascs pursuani iv die
4 policy of the State to provide people with specialized health and medical services and
5 to address the lack of a state-funded kidney and related diseases center in the Province
6 of Cebu and the Visayas Region;
7 b. To promote medical and scientific research relative to the prevention and treatment of
8 kidney and related diseases and initiate planning, invention and development of modem
9 and up-to-date procedures of kidney support and transplantation;
10 c. To conduct fact-finding investigations on kidney discases, and related fields throughout
uu the country or elsewhere, and to report, publish and disseminate information on kidney
and related diseases:
B d. To finance, sponsor, organize or participate in congresses, conventions, conferences,
4 seminars, workshops and training program on kidney diseases and related fields in the
15 ‘country and abroad;
16 €. To initiate and encourage the education and training of physicians, nurses, medical and
7 iccluical persue, sucial workers and vies ficalih officers in the praciieal and
18 scientific implementation of services to kidney patients;
19 f. To assist universities, hospitals and research institutions in their studies on kidney and
20 allied diseases and other related fields, to encourage and grant scholarships for
a advanced training and specialization in renal and related fields, and to support
2 educational programs of value to general public health, and;
23 g. To stimulate the formation of other organizations in the national, provincial, city and/or
24 local levels, and to coordinate the various efforts and activities of such organization for
25 the purpose of achieving a more effective approach to the common problems relative
% to the mmmpoces and objectives emmerated he
27
28 SECTION 5. Powers of the Institute. For the attainment and/or furtherance of the

29 aforementioned purposes and objectives, the Institute, as a body corporate, acting through its
30 Board of Trustees, shall have all the powers, both necessary and implied, pertaining to a

3i juridical persun.

33 SECTION 6. Board of Trustees.- The Institute shall be governed, and its activities and
34 — properties shall be directed, controlled and managed by a Board of Trustees, hereinafter
35 referred to as the Board, composed of the following members:

36
37 a, The Secretary of Health as the ex-officio Chairman;

38 b. The Chief of Hospital, to be appointed by the President, as the Vice Chairman;

39 c. Five representatives from the private sector engaged in the medical profession, to be
an appointed by the President;

41 d. The Regional Director of the Department of Health- Region VII, orhis or her authorized.

42 representative, as ex-officio member; and

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i €. The Mayor of the City of Cebu, or his or her authorized representative as ex-officio
2 member.
4 SECTION 7. Powers and Functions of the Board.- For the attainment and furtherance
5 of the provision of this Act, the Board of Trustees of the Institute shall have the following
6 powers:
7
8 a. To formulate policies, guidelines and programs to effectively implement and carry out
9 the purposes and objectives of this Act;
10 b. To prescribe, review and revise the amount of fees, charges, and assessments levied and
a collected for the support and maintenance of the operations of the Institute;
2 ¢. Ta control the management, operation and administrati i
B d. To promulgate such rules and regulations as may be necessary or proper for the effective
4 management, operation and administration of the Institute;
15 ¢. To authorize each expenditures of the Institute as may be necessary or proper for the
16 effective management, operation and administration of the Institute;
a7 1 Tu deicunine and uiganice dhe fusiiiuic’s urganicativial and adininisivaiive suucinte,
18 and to establish, fix, review, revise and adjust the appropriate compensation scheme of
19 the officers and employees of the Institute, with reasonable allowances, bonuses and
20 other incentives;
2 g. To adopt the annual and supplemental budget of receipts and expenditures of the
22 Institute;
23 h. To appoint, promote transfer, remove, suspend or otherwise discipline officers and
24 employees of the Institute;
25 i. To solicit and receive donations grants, contributions, gifts or endowments from all
6 sources whether foreign or domestic, whether public or private, without the need of
ra securing a permit, approval or registration from any government agency;
28 —j,_ To exercise all the general powers necessary or incidental to the attainment of the
29 purposes and objectives of this Act; and
30 k. To do any and all acts as may be necessary or proper for the attainment of the purposes
3i aud objeris uf this Aci,
32
33 SECTION 8. Term, Removal, Vacancies, Reappointment and Compensation of the

34 ~~ Board.- Except for the ex-officio members of the Board, the following members of the Board
35 shall serve for the duration of the following terms:

36
37 a. The Vice-Chairman shall serve for a term of six (6) years: and

38 b. All other regular members of the Board shall serve for a term of three (3) years, with a
39 right to hold-over until their respective successors shall have been duly appointed and
ny qualified

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Any member of the Board may be removed by the President with or without cause. in case
of vacancy, the person appointed by the President to fill the vacancy shall hold office for the

uucapined ieun of the wieuiver tepiaved.

‘Any member of the Board may be reappointed as such but may not serve for more than two
(2) successive terms.

The Board may fix reasonable per diem for each member subject to applicable laws, rules
and regulations.

SECTION 9. Officers of the Institute.- The Board shall determine the Officers of the
ded in this A H inted by the Chairman of th rd

Insti

who, exe! provi

subject to confirmation by the Board. The Institute may have such executive officers, personnel
and staff as the Board may deem necessary for the effective operation of the Institute.

SECTION 10. Powers and Duties of the Chief of Hospital.- The Chief of Hospital who

shall exercise the following powers and duties:

a. To execute the policies, guidelines and programs approved by the Board, and to be
responsible for the efficient discharge of management and operation functions;

fur the consideration aud approval of die Buaid propused uscasuics, (s
guidelines and programs as he or she may deem necessary or proper for the effective
implementation of the purposes and objectives of this Act;

¢. To direct and supervise the management, operation and administration of the Institute,
and for this purpose, he or she may delegate any or some of his administrative
responsibilities and duties to the other officers of the Institute:

d. To execute, on behalf of the Institute, all contracts and agreements which the Board
may enter into, and to execute, accomplish and deliver any and all documents relative
to such contracts and agreements;

e

of the Government, and all other persons and entities, domestic or foreign, and whether
private; and
ise such other powers and perform such duties as may be vested upon him by

SECTION 11. Authority of the Chairman in Emergencies.- In case of emergencies
which require immediate action by the Board and there is less than twenty-four (24) hours to
call a mceting thercof, the Chairman of the Board may decide on any matter or take any action
within the authority of the Board itself.

SECTION 12. Aid from Government Offices.- The Board may call upon any
Department, Bureau, Agency, Office or instrumentality of the Government, including


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government-owned and controlled corporations, for such assistance as it may need in the
pursuit of the purposes and objectives of this Act.

SECTION 13. Donations to the Institute.- Notwithstanding any provision of law to the
contrary, all donations, grants, contributions, gifts or endowments received by the Institute shall
be exempt from income, donor’s and transfer taxes, and shall further be deductible in full for
purposes of computing the maximum amount deductible for tax purposes under the National
Internal Revenue Code, as amended.

SECTION 14. Appropriations.- The amount necessary to carry out the provisions of this
Act shall be included in the budget of the concemed government agencies in the General

s. ct to the approval of the President,

SECTION 15. Auditing.- The Commission on Audit shall appoint a representative who
shall be the auditor of the Institute together with the necessary personnel to assist the said
representative in the performance of duties. The number and salaries of the auditor and said

persue! shall be deieiuined by die Conmissivn un Audi, subject iv iis rules and regulations.

The Auditor shall, as soon as practicable, but not later than three (3) months after the
accounts have been submitted for audit, send an annual report to the Board. The Auditor may
also submit such periodic and special reports as the Board may deem necessary.

SECTION 16. Indigent Package.- The Board is hereby mandated to formulate a package
for indigent patients. Priority shall be given to patients who are residents of the Province of

Cebu.

SECTION 17. Annual Report. — The Institute shall render to the President and the
Department of Health annual reports of its activities accomplished and recommendations.

SECTION 18. Effect of Dissolution. If for any reason the Institute is dissolved, its

SECTION 19. implementing Rules and Reguiations.- The Department of Health shall
promulgate such rules and regulations as may be necessary to carry out the provisions of this

Act within uinsity (90) days fiom the approval uf this Aut.

SECTION 20. Transitory Provision.- Existing industries, businesses and offices affected
by the implementation of this Act shall be given a six (6) month transitory period from the
effectivity of the Implementing Rules and Regulations or such other period as may be
determined, to comply with the requirements of this Act.


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SECTION 21. Repealing Ciause.- Ali laws, decrees, executive orders, ruies and
regulations, or parts thereof inconsistent with the provisions of this Act are hereby repealed or

SECTION 22. Separability Clause.- If, for any reason, any section of this Act shall be
deemed unconstitutional or invalid, the other sections or provisions shall not be affected and
shall remain in force and in effect.

SECTION 23. Effectivity Clause.- This Act shall take effect after fifteen (15) days from

its publication in the Official Gazette or in at least two (2) national newspapers of general
circulation, whichever comes earlier.

Approved,