Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _ 3335

Introduced by HON. JOY MYRA S. TAMBUNTING

EXPLANATORY NOTE

Over the past years, we have seen various moves to privatize specialized and regular
government hospitals, which I believe will be detrimental for the Filipino people. Thus,
the proposal of this bill which seeks to prohibit the privatization of existing government
hospitals.

With the maintenance and operating costs of running a hospital continuously
increasing, some individuals and groups think that privatizing such institutions would
be the best solution. The government will no longer need to fund these hospitals and
upgrading and modernizing of facilities wil! be assured.

But at what cost? Once privatized, treatment in these hospitals will come at a hefty
price. The poorest of the poor would no longer be able to access these hospitals for
they will not be able to afford the cost of treatment.

These hospitals should remain under the charge of the government so that equal
access to quality health care will be assured. As the Philippiné Constitution mandates,
health services shall be available to ali people at affordable cost. The Philippine
government should find ways in which to modernize and improve these hospitals
without resorting to its privatization.

It is for these reasons that early passage of this proposed measure is highly

recommended.
i ak lbh fy
oe MVRAS. TAMBUNTING |


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session
3335
HOUSE BILL NO.

Introduced by HON. JOY MYRA S. TAMBUNTING

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 “Anti-Privatization of Public
Hospitals, Health Facilities and Health Services Act”.

SECTION 2. Declaration of Policy. - It is the policy of the State to ensure the
protection and promotion of the right to health of the people and to instill health
consciousness among them. Further, the State shall endeavor to make essential
goods, health and other services available to all people at affordable cost.

SECTION 3. Definition of Terms. - As used in this Act:

(a) Indigent / Service / Poor patients refer to those who have no source of income,
or whose family income are below the mandated minimum daily wage and/or
below the minimum monthly cost of living as set by appropriate government
agencies;

(b) Privatization refers to the process in which nongovernment actors become
increasingly involved in the financing and the provision of health care services
which include: outright sale; public-private partnership; corporatization;
Contracting out of equipment; joint venture; franchising; management control
and corporatization; leasing; and user charges;

(c) Public hospitals refer to ali Department of Health (DOH)- retained and national
hospitals, provincial and regional hospitals under the local government,
including specialty hospitals with separate legislative charters like the Philippine
Heart Center, the National Kidney and Transplant Institute, the Lung Center of
the Philippines and the Philippine Children's Medical Center;


(d) Public health facilities refer to health centers, lying-in clinics, and barangay
health stations under the national or local government; and

(e) Public health services refer to all diagnostic, laboratory, medical, surgical, and
health-related services provided by public hospitals and public heaith facilities
to indigent, service or poor patients.

SECTION 4. Prohibition on Privatization of Government Hospitals. — No public
hospital, public health facility, and public health services shall be privatized. Likewise,
under no circumstancé shall the Secretary of Health or any person, whether natural
or juridical, initiate, cause, and approve the privatization of any public hospital, public
health facility or public health services.

This prohibition against privatization shall cover specialty hospitals with separate
legislative charters like the Philippine Heart Center, the National Kidney and Transplant
Institute, the Lung Center of the Philippines and the Philippine Children's Medical
Center.

SECTION 5. Bed Allotment for Indigent/ Service/ Poor Patients in Public
Hospitals. — At least ninety percent (90%) of the total bed capacity of all public
hospitals shall be allotted for indigent/service/ poor patients, pursuant to Republic Act
No. 1939, otherwise known as "An Act Prescribing the Appropriate Share of the
National, Provincial, City and Municipal Governments in the Financial Contributions for
the Operation and Maintenance of Free Beds in Government Hospitals and/or the
Establishment of Additional Wards or Hospitals in the Philippines”.

SECTION 6. Liability and Accountability. - Any person, whether natural or
juridical, who initiates, causes, and approves the privatization of any public hospital,
public health facility or public health services shall be considered in violation of this
Act.

SECTION 7. Penalties. — Any person who violates any provision of this Act shall be
penalized accordingly:

(a) First Offense - A fine of not less than One hundred thousand pesos
(P100,000.00) but not more than Two hundred thousand pesos (P200,000.00)
and suspension of one (1) to two (2) years from public office;

(b) Second Offense - A fine of not less than Two hundred thousand pesos
(P200,000.00) but not more than Five hundred thousand pesos (P500,000.00)
and temporary disqualification from holding any public office for not less than
three (3) years but not more than six (6) years; and

(c) Third Offense - A fine of not less than Five hundred thousand pesos
(P500,000.00) but not more than Eight hundred thousand pesos (P800,000.00)
and removal from public office and perpetual disqualification from holding any
public position or office.


SECTION 8. Implementing Rules and Reguletions, - The Secretary of the
Department of Health shall promulgate the rules and regulations necessary to
implement the provisions of this Act within ninety (90) days from its effectivity.

SECTION 9. Separability Clause, — [f any provision of this Act is declared invalid
Or unconstitutional, the other provisions hereof which are not affected thereby shall
continue to be in full force and effect.

SECTION 10. Repealing Clause. — All laws, orders, decrees, rules and regulations
and other issuances or parts thereof which are inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SECTION 11. Effectivity. — This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in any newspaper of general circulation.

Approved,