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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
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RUG -3 P 3 3 5  
First Regular Session 
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This bill seeks 
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Introduced by Senator Miriam Defensor Santiago 
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to reduce health care costs by requiring tertiary and specialized hospitals 
EXPLANATORY NOTE 
The Constitution, Article XIII, Section II, provides: 
Section 2. The State shall adopt an integrated and 
comprehensive approach to health development which shall 
endeavor to make health and other social services available to all 
the people at affordable cost. xxx 
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Despite the Constitutional mandate, health services have become a precious commodity 
available only to the mdneyed few. Health care costs have skyrocketed to such levels that people 
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are forced to resort tc 
intervention. 
alternative medicine rather than seek expensive professional medical 


THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
A% -3 P335 
First Regular Session 
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costs and achieve a 
S E N A T  
S. B. No. 
more efficient and effective health care delivery system through the 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO REDUCE HEALTH CARE COSTS BY REQUIRING TERTIARY AND SPECIALIZED 
HOSPITALS TO SHARE CERTAIN SERVICES AND EQUIPMENT 
Be it enacted bd Senate and the House of Representatives of the Philippines in Congress 
assem bled: 
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SECTION 1. Short Title. - This Act shall be known as the “Health Services Cost Control 
Act”. 
SECTION 3. DeJnition of Terms. -As used in this Act: 
(1) The term “administrators” refers to the Secretary of Health and the presidents 
and owners of tertiary and specialized hospitals which are covered by this Act. 
(2) The term “tertiary hospitals” means hospital that have complete, advanced, 
and departmentalized facilities and services for the diagnosis, treatment and care of individuals 
suffering from all types of illness, disease, injury or deformity, or in heed of obstetrical or other 
medical and nursing d e .  A tertiary hospital may be government and privately-owned. 
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(3) The jterm “ special” or “specialized hospitals” means hospitals that devote 
their services full-time for the diagnosis and treatment of specific types of illness such as, but not 


limited to, hea 
demonstration program 
related1 ailmer 
to determine the extent to which health care services and equipment can 
lung disease, kidney problem, and abnormal mental state. The 
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term hospital shall also be construed any institution, building or place where there are installed 
beds, or cribs, or bassinets for twenty-our-hour use or longer by special classes of patients like 
children and patients suffering from tuberculosis. 
A special hospital may likewise be 
government or privately owned. 
(4) Government “hospital” means a hospital operated and maintained either 
partially or whoIly by the national, provincial, municipal, or city government or other political 
subdivisions, or any other department, division, board, or agency thereof. 
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(5) “Private hospital” means one which is privately owned, established and 
operated with funds raised or contributed through donations, or by private capital or other means, 
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by private individuals,/ associations, corporations, religious organizations, firm, or joint stock 
association. 
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this Section, the Adkinistrators shall prepare the guidelines for the kind of cooperative 
agreements that may be entered into in accordance with the results of the demonstration 
program. 
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SECTION 5. Service Area. - The Administrators shall determine the area to be served 
by a demonstration program under Section 3 (1). 
SECTION 6. Grantjmds and dm breah. - 
(1) Tertiasy and specialized hospitals that enter into cooperative agreements under 
Section 3 (2) of this &t shall receive grant funds and tax breaks to be determined by the 
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Administrators and the 
tax break, a tertiary or 
application at such time, 
may require, including 
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,Commissioner of Internal Revenue. To be eligible to receive a grant or 
specialized hospital shall prepare and submit to the Administrators an 
in such manner, and containing such information as the Administrators 
- ( a) a statement that such entity d esires to negotiate and enter into a 
under paragraph (1). I'n determining which applications to approve for purposes of awarding 
communities traditionally 
the entities involved; 
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served by the applicant; 
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(c) improvements in the cost-effectiveness of'high-technology services by 
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SECTION 7. Application of grant funds. - (1) ET GENERAL. Amounts provided under a 
grant awarded under Section 5 shall be used to facilitate collaboration among entities. Such 
permissible uses ma,! 
include reimbursing for the expenses associated with specialized 
personnel, administratiye services, support services, transportation, 'and instructional programs. 
Funds may not b e u sed to purchase expensive, c apital- intensive m edical t echnology or other 
resource-intensive servlces not previously owned or provided by the facility. 
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shared ownership will 
(2) G 
NT AWARD AMOUNT. Entities applying for grants under Section 5 
The Administrators shall determine the 
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shall specify the des'red grant award amount. 
appropriate amount granting such awards. 
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avoid a significant degree of the potential excess capacity of such services 


SECT101 
SECTION 11. 
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9. Term cooperative agreements under this Act 
Appropriations. - To carry out the demonstration program in Section 5 
7 reduce healthcare costs 
shall continue for the period agveed upon by the pavticipating parties. 
SECTION 10. Reports. - In general, the p articipants to health-cost reduction programs 
entered into under th's Act shall submit annual reports to the Administrators containing 
information on the programs funded under this section, as required by the administrators. 
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SECTION 12. beparability Clause. - If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision shall remain valid and subsisting. 
SECTION 13. 'Repealing Clause. - Any law, presidential decree, 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. 
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SECTION 14. (Efectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least &o (2) newspapers of general circulation. 
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Approved.