SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
554 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRA'DA 
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EXPLANATORY NOTE 
As part of the government's effort to reform the health sector, privatization 
of government hospitals has been endorsed ostensibly due to the rising cost of 
maintenance and operational expenses. One argument in favor of privatifation is 
that it will allow investors to infuse additional capital to modernize and upgrade 
the facilities and eqUipment of these government hospitals, more particularly the 
specialized hospitals such as the Philippine Heart Center and the National 
Kidney and Transplant Institute. 
While it is true that the government is experiencing difficulty in infusing the 
much-needed funds to continually upgrade and acquire sophisticated and 
advanced medical equipment, it is a reality that majority of the people rely on 
these government hospitals for their medical and health needs. 
It is almost certain that corresponding increase in medical costs will ensue 
once the privatization of government hospitals is pursued. Some people cannot 
even afford adequate shelter, food, clothing, and education. Worst, accessible 
and affordable health care services will be beyond their reach. 
The Constitution mandates that health services shall be available to all 
people at affordable cost. It is in this light that this measure seeks to prohibit the 
privatization of government hospitals to ensure and guarantee that health care 
services are affordable and accessible to all Filipino people. 
The early passage of this proposed measure is highly recommended. 
Senator 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
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First Regular Session 
'13 
JUL -8 A9 :01 
SENATE 
Senate Bill No. 
554 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRAD;( 
AN ACT 
PROHIBITING THE PRIVATIZATION OF GOVERNMENT HOSPITALS 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Government 
Hospitals' Privatization Prohibition Act'. 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to guarantee that health care services are available, accessible and 
affordable to all the people by prohibiting the privatization of government 
hospitals. 
SEC. 3. Definition of Terms. - For purposes of this Act, the term: 
(a) 
(b) 
"Secretary" shall refer to the Secretary of the Department of 
Health; and, 
, 
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"Government Hospital" shall refer to a hospital operated and 
maintained either partially or wholly by the national, p~ovincial, 
, municipal, or city government or other political subdivision, or by 
any department, division, board or other agency thereof. 
SEC. 4, Prohibition on Privatization of Government Hospitals. - The 
Secretary is hereby prohibited to privatize, sell, or offer for sale all government 
hospitals, 
SEC. 5. Implementing Rules and Regulations, - The Secretary shall 
promulgate the necessary rules and regulations to implement the provisions of 
this Act. 
SEC. 6. Appropriations, - In order to achieve the objectives of this Act, 
such amount as may be necessary is hereby authorized to be appropriated from 
the National Treasury, 
Thereafter, the amount necessary for the continuous 
operation of the hospitals shall be included in the annual appropriations of the 
Department of Health. 


SEC. 7. Separability Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to or inconsistent with the provisions of this Act is hereby repealed, 
modified, or amended accordingly. 
SEC. 8. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule - or regulation 
contrary to or inconsistent with the provisions of this Act is hereby repealed, 
modified or amended accordingly 
SEC. 9. Effectivity. - This Act shall take effect fifteen (15) days lafter its 
publication in at least two (2) newspapers of general circulation. 
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Approved,