Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL No._3157

Introduced by Rep. BERNADETTE HERRERA-DY

EXPLANATORY NOTE
The constitution under Art. 11, Section 15 thereof provides that the State protect and
promote the right of health of the people and instill health consciousness among them.

As a partner in promoting people's health, the government must provide assistance to
private hospitals to ensure their viability and high quality service.

Seventy percent (70%) of the country's hospitals are privately owned. Distributed to
the different areas of the country, these institutions provide the much needed medical
services and facilities that government hospitals cannot alone provide thereby filling a void
in the people's health needs.

This legislation proposes a Private Hospital Development Plan, which will be drawn
in coordination with the Secretary of Health, appropriate government agencies and non-
government organizations. This plan shall monitor the needs of private hospitals in terms of
its facilities, equipment and human resources. It shall also grant tax incentives to accredited
private hospitals.

This bill likewise proposes the creation of a Special Private Hospital Fund that will
be sourced from real property taxes paid by private hospitals. The money collected shall be
used to finance the improvement of private hospital facilities and to assist community-based
projects in various localities. This fund shall be managed and disbursed by the local health
board in each municipality or chartered city with private hospitals.

Through this bill, we hope to build a bridge of cooperation between the government
and private hospitals. It shall provide the needed link between the public's ever growing
health care needs and the advanced medical services afforded by private hospitals to help
build a healthy nation. YA

The immediate passage of this bill is therefore requested.

BERNADETTE HERRERA-DY


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _3 157

Introduced by Rep. BERNADETTE HERRERA-DY

AN ACT ESTABLISHING A PRIVATE-HOSPITAL DEVELOPMENT PLAN AND
PROVIDING ASSISTANCE TO PRIVATE HOSPITALS BY GRANTING
THEM INCENTIVES

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

SECTION 1. Title, - This Act shall be known as the “Private Hospital Assistance
Act of 2010."

SECTION 2. Declaration of Policy. - It is the policy of the State to provide
assistance to private hospitals to ensure their viability and enable them to continue giving
quality service to the people. Towards this end, a private hospital development plan shall be

promulgated and the private hospital fund established.

I. PRIVATE HOSPITAL DEVELOPMENT PLAN

SECTION 3. The Private Hospital Development Plan. - The Secretary of Health in
consultation with the appropriate government agencies, the Philippine Hospital Association
and other non-government organizations, shall draw up a Private Hospital Development
Plan that shall:


1. Assess the prevailing situation in a certain locality and identify needs in terms of
facilities, equipment and human resources, provide incentives for, and establish agreements

and linkages with private hospitals and clinics to answer these needs;

2. Identify unserved or under served areas in terms of secondary and tertiary care
where private hospitals can be established and, in collaboration with other government

agencies, provide proper incentives for the same;

3. Promulgate rules and regulations regarding the number, composition and other
matters relating to the creation of the Private Hospital Board as provided for in Section 5 of
this Act;

4, Establishing guidelines for better coordination and cooperation between
government and private hospitals system in the country so as to provide better quality

medical services to more people needing medical attention.

11. CREATION OF THE PRIVATE HOSPITAL FUND AND BOARD

SECTION 4. Private Hospital Fund. ~ All proceeds from the payment of real
property taxes of private hospitals shall accrue to a special Private Hospital Fund which
shall be used for the following purposes:

a) Improvement of hospital facilities to accommodate more service ward patients; and

b) Financial assistance to community-based health projects in the locality.

SECTION 5. The Private Hospital Fund Board. ~ The private hospital fund shall
be managed and disbursed by a local Board which shall be constituted in each municipality

or chartered city with private hospitals, and shall be composed of:


a) The Mayor of the municipality or chartered city as Chairperson;
b) A director from every private hospital in the municipality or city;
c) The municipal or city health officer;

d) Two (2) representatives of the private sector or non-governmental organizations.

The members of this Board shall be chosen in accordance with implementing rules
and regulations to be issued by the Secretary of Health, The Private Hospital Board shall
adopt its own rules and regulations, which shall enable it to finance the activities, provided

for in Section 4 of this Act.

SECTION 6. Audit of the Private Hospital Fund. ~ The disbursement of the Private

Hospital Fund shall be subject to audit by the Commission on Audit.

SECTION 7. Repealing Clause. - Any provision of law, rules and regulations

inconsistent with this Act is hereby repealed or modified accordingly.

SECTION. 8. Effectivity - This Act shall take effect fifteen (15) days from its

publication in the Official Gazette or in two (2) national newspapers of general circulation.

Approved,