Republic of the Philippines RECEIVED

HOUSE OF REPRESE pIVES i 07 SEP 2016
ATE:
Quezon City
Tv
SEVENTEENTH CONGRESS BY:

First Regular

REOISTR ATION UNIT
BILLS AND Ini

‘an, M.D,

HOUSE BILL NO.

Introduced by: Hon. Angelina “Helen” D.L. T

AN ACT AUTHORIZING GOVERNMENT HOSPITALS TO UTILIZE ALL ITS
INCOME FOR HOSPITAL OPERATIONS PARTICULARLY MAINTENANCE
AND OTHER OPERATING EXPENSES (MOOE) AND CAPITAL OUTLAY

EXPLANATORY NOTE

Government hospitals, while receiving subsidy from the National Government,
cannot utilize their income for the maintenance and other operating expenses (MOOE)
and capital outlay of the hospital. Said income is required by law to be remitted to the
national treasury

Unfortunately, this practice has a debilitating effect on the hospital's capability
for expansion and improvement of its services. To address this problem, this measure
seeks to give more meaning to the autonomy of government hospitals in the area of
physical and operational development by granting them the authority to utilize their
income for their MOOE and capital outlay expenditures.

Although the Department of Health (DOH) hospitals are authorized under the
special provision No. 6 of the General Appropriations Act (GAA) to retain their income
since 2003, the DOH has again proposed the inclusion of said provision in the 2005
GAA.

Hence, this proposal seeks to grant DOH hospitals and all other government
hospitals permanent authority to retain their income without need of proposing its
inclusion in the GAA on an annual basis.

It is hoped that in. making our government hospitals more financially
independent, effective and efficient delivery of quality health services to the people will
be consistently ensured.

Approval of this bill, therefore, is earnestly sought.

ANGELINA ntl, TAN, M.D.
4th District, Quezon



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

527

HOUSE BILL NO.

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT AUTHORIZING GOVERNMENT HOSPITALS TO UTILIZE ALL ITS
INCOME FOR HOSPITAL OPERATIONS PARTICULARLY MAINTENANCE
AND OTHER OPERATING EXPENSES (MOOE) AND CAPITAL OUTLAY

Be it enac
Congress as

xd by the Senate and House of Representatives of the Philippines in
embled:

TION 1. Government hospitals are hereby authorized to utilize their income
from pharmacy, fees from in-house services and facilities, including but not limited to
laboratory, radiology, operating room and nursery facilities and income derived from
non-patient related services such as parking fees, interview fees and tour fees, for the
maintenance and other operating expenditures including capital outlay, especially for
the acquisition of hospital machineries and equipment.

SEC. 2. Expenditures under this Act shall be subject to existing auditing rules and
regulations. In addition, the retained hospitals shall submit quarterly report of income
and expenditures to the Department of Health (DOH), while devolved hospitals shall
submit the same to the office of the Provincial Governor or the City/Municipal Mayor.

SEC. 3. The DOH, in coordination with the agencies concerned shall formulate
the necessary rules and regulations for the effective implementation of this Act within
sixty (60) days from its approval.

. 4. = If any provision or part hereof is held invalid or unconstitutional, the
remainder of the law or the provision not otherwise affected shall remain valid and
subsisting,

SEC. 5. 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 modified or amended accordingly.

. This Act shall take effect fifteen (15) days after its publication in the
yon or in at least two (2) newspapers of general circulation.

Approved,