FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
‘THIRD REGULAR SESSION

SENATE
s.B.no.-38278 B

Introduced by Senator FRANKLIN M. DRILON

EXPLANATORY NOTE

This bill is being filed as a piece to the larger national policy measure of providing
the Filipino people with health care services that are truly responsive to the needs of our
constituents, particularly the senior citizens of our nation.

Pursuant to Section 15, Article II of the 1987 Constitution, we are mandated to
adopt an integrated and comprehensive approach to health development, with special
focus to the needs of the underprivileged, sick, elderly, disabled, women and children.
The proposed measure addresses the special health care requirements of the senior
citizens by means of enhancing the operational capabilities of the present National
Centre for Geriatric Health (NCGH). When this measure is approved, the NCGH will be
corporatized into the National Geriatric Health Centre and Gerontology Research
Institute” (NGHCGRD, which shall be an integrated medical institution that specializes
in geriatric health services and gerontology research. As a Government-Owned and
Controlled Corporation (GOCC), the NGHCGRI shall be administered, taking into
consideration the rationalization of GOCC governance and operations as enshrined by
this Congress through Republic Act No. 10149, otherwise known as the “GOCC
Governance Act of 2011”.

Foregoing considered, the passage of this Bill is earnestly requested.

Ki IN M. DRALON



FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES ) mw a
THIRD REGULAR SESSION )
SENATE

SENATEBILLNO. 3278 i

Introduced by Senator FRANKLIN M. DRILON

AN ACT
CONVERTING THE NATIONAL CENTER FOR GERIATRIC HEALTH INTO A
CORPORATE BODY TO BE KNOWN AS THE ‘NATIONAL GERIATRIC HEALTH
CENTER AND GERONTOLOGY RESEARCH INSTITUTE’, APPROPRIATING FUNDS
THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. — This Act shall be known as the “National Geriatric Health
Centre and Gerontology Research Institute Act of 2012.”

SEC. 2. Declaration of Policy. - Section 15, Article || of the 1987 Constitution provides
that:
“The State shall adopt an integrated and comprehensive approach to health
development which shall endeavour to make essential goods, health and other
social services available to all the people at affordable cost. There shall be
priority for the needs of the underprivileged, sick, elderly, disabled, women and
children. The State shall endeavour to provide free medical care to paupers”

SEC. 3. Definition of Terms. — For purposes of this Act, the following terms are defined as
follows:

(a) “Senior citizen” or “elderly” shall refer to any resident citizen of the Philippines
who is at least sixty (60) years old or older as defined in Republic Act No.
9257, otherwise known as the “Expanded Senior Citizens Act of 2003.”

(b) “Geriatrics” shall refer to the branch of medical science devoted to the study of
the biological and physical changes and diseases of older adults. It aims to
promote health and prevent and treat diseases and disabilities of older adults;

(c) “Geriatrician” shall refer to a medical doctor who has passed the necessary
training and examination and specializes in the field of Geriatrics;



(d) “Geriatric Health Service” shall refer to medical services or intervention
provided by a Geriatrician;

(e) “Integrated Delivery of Geriatric Health Services” shall refer to a hospital and
community-based medical and psycho-social services provided to senior
citizens by a multi-disciplinary team;

(f) “Palliative Services” shall refer to a specialized care for people who are living
with an advanced disease

(g) “Palliative Care” shall refer to any form of medical care or treatment that
concentrates on reducing the severity of the symptoms of disease. The goal is
to prevent and relieve suffering and improve the quality of life for people facing
serious or complex illness;

(h) “Tertiary level hospital” shall refer to a hospital that has a full complement of
services including general medicine, surgery and psychiatry.

SEC. 4. Conversion of the National Centre for Geriatric Health. - The National Centre for
Geriatric Health (NCGH), located in San Miguel, Manila, is hereby converted into a
corporate body to be known as the “National Geriatric Health Centre and Gerontology
Research Institute” (NGHCGRI), herein after referred to as the Corporation, for the
primary benefit of senior citizens or the elderly, which is hereby categorized as a
government owned and controlled corporation attached to the Department of Health. The
bed capacity of the hospital shall be at least fifty (50).

SEC. 5. Purposes and Objectives. - The Corporation shall have the following purposes
and objectives:

(@ Equip, maintain, administer, and operate an integrated medical institution
which shall specialize in geriatric health services and gerontology research;
(b) Promote medical and scientific research relative to the prevention, diagnosis,
treatment, care, rehabilitation and relief of disease of the senior citizen or

elderly;

(c) Finance, sponsor, hold or participate in congresses, conventions,
conferences, seminars, workshops and training programs on geriatric health
services or related fields in the Philippines or abroad;

(d) Encourage and assist in the education and training of physicians, nurses,
health officers, social workers and other medical and technical personnel in
the practical and scientific implementation of health services to the senior
citizen or elderly; and

(©) Coordinate the various efforts and activities of other government agencies
and local government units for the purpose of achieving a more effective
approach to the delivery of geriatric health services.

‘SEC.6. Scope of Services. - Consistent with its purposes and objectives, the Corporation

‘shall provide the following services:

(a) Hospital-based services — to provide medical facilities and equipment
necessary for chronic, long term and palliative services with wards categorized

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into the following: Dementia, Long Term Care, Palliative Care, Respite Care
and other units as may be deemed necessary;

(b) Community-based services ~ to develop and implement community-based
program in partnership with local government units; conduct research and
external resource outscoring to implement community based integrated
geriatric health services and conduct training necessary for the social
functioning of the senior citizens and their families, utilizing the multi-
disciplinary team approaches;

(c) Program Education — to pursue excellence and the highest level of practice in
the specialized field of geriatrics and other related fields, conduct post-
graduate training and short-term courses for medical doctors and allied
medical professionals:

(d) Program Development Research, Medical/ Technical Assistance and Quality
Assurance — to develop cutting edge research and program to combat
diseases of old age in promoting active and healthy care, provide necessary
consultancy advice, technical assistance and standard setting/registration to
geriatric ward in every tertiary level hospital, nursing homes, and residential
center catering to the health and social functioning needs of senior citizens,
subject to the joint guidelines mentioned in the immediately preceding
paragraph.

SEC. 7. Powers and Functions. -The Corporation, acting through its Board of Trustees,
shall have the following powers and functions:

a. To acquire, hold and own in any manner, property of whatever nature of
description, and to dispose of such property, under any mode of encumbrance
or conveyance;

b. To enter into contracts with any person, firm, association or corporation,
whether public, private, domestic or foreign;

c. To mortgage, lease, sell, transfer, convey or otherwise dispose of its
properties;

d. To solicit and receive in trust legacies, gifts and donations, endowments and
funds in the form of contributions, whether in cash or in kind, from both public
and private sectors and from domestic and foreign sources;

e. To maintain accounts in banks and in other financial institutions, and to
disburse such funds or invest the same as the Board of Trustees may direct or
authorize to accomplish or advance the interests of the Corporation;

f. To invite foreign or local specialists and similar experts in various medical
fields to train the personnel and residents of the Corporation;

g. To organize the structure and staffing pattern and modify the same as it
deems necessary;

h. To send the personnel of the Corporation to conduct research on medical
institutes for advance training or observation, and to attend international or
regional conventions, conferences or seminars as the Board of Trustees may
deem necessary;



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i. To enter into agreements with other medical or similar institutions, domestic or
foreign, as may be deemed desirable by the Board of Trustees toward
promoting the purposes and objectives of the Corporation;

j. To adopt a set of by-laws and regulations, policies, guidelines and procedures
consistent with law and the provisions of this Act to govern the administration
and operation of the Corporation; and

k. To do all such other acts as may be necessary for the accomplishment of the
purposes and objectives of the Corporation.

SEC. 8. Board of Trustees. - The Corporation shall be administered by a Board of
Trustees, herein after referred to as the Board, composed of the following:

a) Secretary of the Department of Health (DOH) as Chairman of the Board;

b) Secretary of the Department of Social Welfare and Development (DSWD) as
Vice Chairman of the Board;

c) Chairperson of the Senate Committee on Health and Demography;

d) Chairperson of the House of Representatives Committee on Health;

e) Three representatives from the Federation of Senior Citizens Association of
the Philippines;

f) President of the Philippine College of Geriatric Medicine;

g) Three representatives from the Philippine Medical Association with expertise

in the field of geriatrics or gerontology;

Two representatives from the academe with expertise in the field of geriatrics

or gerontology; and

i) Two representatives from non-government organizations which provide
services for senior citizens, duly registered with the Securities and Exchange
Commission (SEC), Cooperative Development Authority (CDA), or any
appropriate government regulatory body, and with programs accredited by the
Department of Social Welfare and Development (DSWD), as members.

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The members of the Board enumerated in subparagraphs (a), (b), (c), and (4) shall
serve as ex-officio members. The ex officio members of the Corporation may designate
‘their respective alternates who shall be the officials next-in-rank to them and whose acts
shall be considered the acts of their principals.

The members of the Board under subparagraph (e), (f), (g), (h) and (i) shall be
appointed by the President of the Philippines from a shortlist prepared by the Governance
Commission for Government-Owned and Controlled Corporations (GCG), taking into
consideration the recommendation from the Secretary of the DOH for the first initial
appointees, and then by the Board for subsequent appointees.

The appointive members of the Board shall serve for one (1) year, unless sooner
removed for cause: Provided, however, That such appointive members of the Board shall
continue to hold office until the successor is appointed. An Appointive Director may be
nominated by the GCG for reappointment by the President only if one obtains a
performance score of above average or its equivalent or higher in the immediately
preceding yéar of tenure as such trustee based on the performance criteria set by the

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GCG. The ex-officio members shall serve as members of the Board for the duration of
their incumbency.

No person shail be appointed member of the Board unless a citizen and a resident
of the Philippines, of good moral character and has attained proficiency, expertise and
recognized competence in one or more of the following fields: hospital finance and
administration, medical care, public health care, government rules and regulations, law,
business management and marketing. The members of the Board should have at least
five (5) years experience in their fields of expertise.

To maintain the quality of management, the GCG, in coordination with the DOH
and the DSWD, subject to the approval of the President, shall prescribe, pass upon and
review the qualifications and disqualifications of individuals appointed as members of the
Board and shall disqualify those found unfit.

All members of the Board shall serve without compensation other than actual and
necessary expenses, in accordance with Republic Act No. 10149, otherwise known as
the “GOCC Governance Act of 2011", and other existing laws, policies, and rules and
regulations on the matter, incurred either for attendance in meetings of the board or upon
official business authorized by a resolution of the Board.

The Board shall be governed by a set of by-laws which shall contain, but not
limited to, their responsibilities, accountabilities and cause of termination. The members
of the Board must not exceed fifteen (15).

SEC. 9. Corporate Officers. - The Board shall appoint a Secretary and such other officers
as may be deemed necessary to help the Board carry out its functions. Selection of the
corporate officers must be based on the fundamental and specific qualifications
‘prescribed by existing laws.

'SEC. 10. Chief Executive Officer. - The present Chief and Director of the NCGH shall
assume the position of Chief Executive Officer (CEO) of the Corporation. Provided, That
in case of vacancy of the office previously occupied by the Director of the NCGH, the
selection process and the term of office shall be governed by the pertinent provisions of
‘Republic Act No. 10149.

SEC. 11. Powers and Functions of the CEO. — The CEO shall exercise the following
powers and functions:

(a) Execute the policies, guidelines and programs approved by the Board;

(b) Submit for the consideration and approval of the board proposed measures,
policies, guidelines and programs as may be deemed necessary for the
effective implementation of the purposes and objectives of this Act;

(c) Direct and supervise the management, operation and administration of the
Corporation;



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(d) Execute, on behalf of the Board, all contracts and agreements which the
latter may enter into, and to execute, accomplish and deliver any and all
documents relative to such contracts and agreements;

(e) Represent the Corporation in all dealings with other offices, agencies and
instrumentalities of the government, and all other persons or entities,
whether domestic or foreign and whether government or private;

() Recommend to the Board the appointment, promotion, transfer, suspension
and dismissal of the officers and employees of the Corporation; and

(g) Exercise such other powers and perform such duties as may be vested by
the Board.

The CEO shall be accountable to the Board who, after due process, has the power
of removal or replacement for reasons of fraud, incompetence, dishonesty and other just
cause.

SEC. 12. Corporate Structure. - The Corporation shall follow the standard corporate
structure to be jointly formulated by the DOH and the GCG in coordination with the
different concerned agencies.

SEC. 13. Board's Meetings and Quorum. ~ The Board shall hold a meeting at least once
a month. Special meetings may be convened at the call of the Chairman or by the
majority of the members of the Board. The Chairman or the designated representative
shall preside over the meetings of the Board. In the absence of the Chairman or the
representative, a temporary presiding officer shall be designated by the majority of the
members there being a quorum.

Eight (8) members of the Board shall constitute, a quorum to transact business
and the vote of the majority of those present, there being a quorum, shall constitute valid
and binding act of the Board. Provided, however, That the affirmative vote of the majority
of the members of the Board is required on the following matters:

(a) Adoption or changes of policy;

(b) Investment of the Corporation's funds;

(c) Contracting loans, for specific amount as may be provided for in the Implementing
Rules and Regulations (IRR) where a vote of the majority of those present, there
being a quorum, shall suffice;

(d) Appointment, discipline and termination of the Hospital Chief or Director. The
appointment, discipline and termination of other officers and employees shall be by
a vote of a majority of those present, there being a quorum; and

(e) Authority to use corporate assets as collateral for loans and borrowings.

SEC. 14. Property of the Corporation. - The property of the Corporation shall consist of
real, personal, and other type of property previously owned by the NGHC or reserved for
or may hereafter be given, donated, acquired, transferred or conveyed to it by the
Philippine government, its branches and instrumentalities, or any foreign government, as
well as by trust, foundation, corporations or persons, alien or domestic, in order to carry
‘out its purposes and objectives as set forth herein



SEC. 15. Loans. — The Corporation is hereby authorized to contract loans, credits and
other indebtedness in any convertible foreign currency, from time to time, from foreign
governments, or any international financial institutions or fund sources, or any other
entities, on such terms and conditions it shall deem appropriate for the accomplishment of
its purposes and to enter into and execute agreements specifying such terms and
conditions.

The property and assets of the Corporation may be used as collateral for its loans
and borrowings.

SEC. 16. Program for Indigents. - The Board shall ensure that the Corporation shall
adopt and enforce a program for indigents. The number of beds allocated for indigent
patients shall not be less than forty percent (40%) of the hospital's total bed capacity.

SEC. 17. Organizational Structure and Staffing Pattern. — The Board shall determine the
organizational structure and staffing pattern of the Corporation, subject to the evaluation
by GCG, the Civil Service Commission and the Department of Budget and Management.

SEC. 18. Security of Tenure of Civil Service Officers and Employees of the Corporation. —
The provisions of Republic Act No. 6656 entitled, "An Act to Protect the Security of
Tenure of Civil Service Officers and Employees in the Implementation of Government
Reorganization” and other existing laws shall apply to all officers and employees of the
Corporation except to the members of the Board of Trustees

SEC. 19. Salaries, Benefits and Other Compensation. - The salaries, benefits and other
compensation of the officers and employees of the Corporation shall be in accordance
with the present compensation and position classification system until the President shall
approve a revised position classification system for the Corporation prepared by the
GCG.

SEC. 20. Early Retirement and Separation Benefits. — The officials and employees of the
Corporation voluntarily opting for separation or retirement under a duly approved early
retirement and separation scheme shall be entitled to the benefits provided for under
existing laws.

‘SEC. 21. Tax Exemptions and Other Privileges. — Being a non-profit, non-stock
corporation organized primarily to provide delivery of integrated geriatric health services,
the Corporation shail be entitled to the following privileges:

(a) all donations, contributions, endowments and equipment and supplies
imported by the Corporation for its actual use and benefit shall be exempt
from tax of any nature or kind;

(b) the Corporation shall be exempt from payment of taxes, charges and fees
being imposed by the government, its political subdivisions or
instrumentalities, including local government units for equipment purchased
for its use; and



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(c) the Corporation may request and receive assistance from the different
agencies, bureaus, offices or instrumentalities of the government, including
the Philippine Amusement and Gaming Corporation (PAGCOR) in the pursuit
of its purposes and objectives.

SEC. 22. Transfer of Personnel, Records and Assets and Liabilities. — All personnel,
records and assets and liabilities of the NCGH are hereby transferred to and shall
henceforth appertain to the Corporation.

SEC. 23. Anrlual Report. - The Corporation shall render an Annual Report of its activities,
accomplishments and recommendations to the President of the Philippines, the GCG, the
Committees on Health and Social Services of both Houses of Congress, Secretary of the
Department of Health and the Secretary of the Department of Social Welfare and
Development.

SEC. 24. Auditor. "The Commission on Audit shall appoint an auditor of the Corporation
and such personnel as may be necessary to assist said auditor.

SEC. 25. Effect of Dissolution — In the event that the Corporation is dissolved for any
reason, its property remaining at the time of such dissolution shall be placed under the
DOH.

SEC. 26. Appropriations. — The amount of Three hundred million pesos
(P300,000,000.00) is hereby appropriated as contribution of the National Government for
the initial operations and maintenance of the Corporation. Thereafter, the amount
necessary for the continued operation and maintenance of the Corporation shall be
included in the annual General Appropriations Act.

SEC. 27. Application of Republic Act No. 10149 and Suppletory Application of the
Corporation Code. - The provisions of Republic Act No. 10149, also known as the
“GOCC Governance Act of 2011” shall have application on matters not provided for in this
Act. On other matters not provided for under this Act or Republic Act No. 10149, the
provisions of the Corporation Code shall have suppletory application.

‘SEC. 28. Implementing Rules and Regulations. — The Secretary of Health shall, within

‘sixty (60) days from the effectivity of this Act, issue the Implementing Rules and
Regulations for the effective implementation of the provisions of this Act in consultation

with the following agencies and offices:

(a) Department of Social Welfare and Development;
(b) Commission on Higher Education; and
(c) Department of Finance;

'SEC. 29. Repealing Clause. - All laws, decrees, executive orders, rules and regulations
.or parts thereof inconsistent with the provisions of this Act are hereby repealed, amended

or modified accordingly.



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SEC. 30. Separability Clause. - If, for any reason, a provision or part hereof is declared
invalid or unconstitutional, the other provisions not affected thereby shall remain in full

force and effect.

SEC. 31, Effectivity. - This Act shall take effect fifteen (15) days after its publication in
any newspaper of géneral circulation

Approved,