FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S. No. 938 
) 
) 
) 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
It is the policy of the State to protect and promote the right to health of its people. 
This can be pursued by undertaking appropriate health manpower development which 
is responsive to the country's health needs and problems, Recently, there has been a 
resurgence of heart, kidney, and lung problems which have caused economic 
dislocation and the eventual curtailment of the enjoyment of productive and happy life. 
Medical centers such as the Philippine Heart Center, the National Lung Center of 
the Philippines, the National Kidney Center, and the Philippine Children's Medical 
Center which provide specialized services were established individually and organized 
as government corporations which function independently of each other. Their services 
for patients and their teaching and research functions are pursued with minimum 
coordination, if any, among each other. 
There is need therefore, to integrate and rationalize these specialty centers by 
establishing a Medical Center System that will consist of existing facilities in order to 
achieve a more effective and efficient implementation of resources and thereby improve 
the health care delivery system in the country. 
Moreover, the proposed bill seeks to establish the Philippine Medical Center 
System to serve as a teaching, training and research institution for students of medicine 
and its allied fields, residents and post graduate fellows. 
This Philippine Medical Center shall be developed and maintained as a medical 
tertiary care institution to serve the public. 
In view of the foregoing, early passage of this bill is earnestly reguE?sted. 
, 
M 
EL "LITO" M. LAPID 
Senator 
~"'\, 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 938 
Introduced by Senator Manuel "L.ito" M. L.apid 
AN ACT 
ESTABLISHING 
THE 
PROVIDING FOR ITS 
OTHER PURPOSES 
PHILIPPINE 
MEDICAL 
CENTER 
SYSTEM, 
ARMINISTRATION AND SUPPORT AND FOR 
I i) 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled. 
TITLE I 
GENERAL PROVISIONS 
SECTION 1. 
Establishment of the Philippine Medical Center System. -
There is hereby established a Philippine Medical Center System, hereinafter referred to 
as the System, which shall be attached to the Department of Health. The System shall 
provide specialized medical services, professional and advanced medical training and 
research. It shall make its services and resources available to the public, especially 
the indigents. 
SEC. 2. 
Component Units. - Without prejudice to Section 7 (b), the System 
shall consist of the following specialized research centers and hospitals: 
1. 
The Philippine Heart Center; 
2. 
The Lung Center of the Philippines; 
3. 
The National Kidney Institute; and 
4. 
The Philippine Children's Medical Center. 
SEC. 3. 
Purposes and Functions. - The purposes and functions of the 
System are as follows: 
a. 
To formulate, develop and implement an integrated and comprehensive 
specialized medical and health program; 
b. 
To operate specialty medical institutions mentioned in Section 2, as well 
as any other component unit which may be established pursuant to 
Section 7 (b); 
c. 
To provide integrated specialty medical services to the public; 
d. 
To provide medical practitioners, advanced instruction and training 
• pertaining to its specialized health programs; 
e.· 
To create and implement undergraduate, internship, residency, and post-
residency programs for medical students and physicians; 
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f. 
To undertake research in various medical and health fields covered by its 
program; 
g. 
To train physicians, nurses, medical technicians, nutritionist-dietitians, 
pharmacists, other members of the medical and other allied medical fields 
for the purpose of implementing its program; 
h. 
To engage in a continuing education and information campaign on the 
nature, prevention, treatment and control of the various diseases covered 
by its program; 
i. 
To develop, strengthen and enhance the capabilities and technical skills 
for specialized medical care of all regional hospitals of the Department of 
Health; and 
J. 
To coordinate with the Philippine Hospital Association, as well as with 
non-governmental organizations, in delivering specialty care to the people. 
SEC. 4. 
The Powers of the System. - The System shall have the power of 
a corporation, the powers set forth in this Act and such other powers as may be granted 
to it by other laws. 
TITLE II 
THE MANAGEMENT OF THE 
PHILIPPINE MEDICAL CENTER SYSTEM 
. SEC. 5. 
The Board of Trustees. - The government of the System shall be 
vested in the Board of Trustees. It shall be the highest policy-making body of the 
System. The administration of the System and the exercise of its powers are vested in 
the Board of Trustees as well as in the President of the System insofar as authorized by 
said Board.: 
SEC. 6. 
Composition of the Board of Trustees. - The Board of Trustees 
shall be composed of the Secretary of Health as the Ex-Officio Chairman, the Chairman 
of the Committee on Health of the Senate, the Chairman of the Committee on Health of 
the House of Representatives, the Secretary of Science and Technology, the President 
of the System, the Chairman of the Association of Philippine Medical Colleges, the 
Directors of the component units of the System and three (3) members representing the 
medical and allied medical profession to be appointed by the President of the 
Philippines. 
SEC. 7. 
Powers of the Board of Trustees. - The Board of Trustees shall 
have the following powers and duties in addition to its general powers of administration: 
a. 
To receive and appropriate to the ends specified by law such sums as 
maybe provided by law for the support of the System; 
b. 
To provide for the establishment of additional component units; 
c. 
To appoint, on recommendation of the Executive Director of the System, 
physicians, nurses, nutritionist-dietitians, pharmacists, other medical staff 
members, instructors, researchers, other employees of the System; to fix 
their compensation, hours of service, and such other terms and conditions 
as it may deem proper consistent with civil service laws, rules and 
regulations; 
2 


d. 
To receive in trust, gifts, legacies and donations of real and personal 
property for the benefit of the System or of any of its component units; 
e. 
To establish a fund raising program to supplement the funds appropriated 
by the government; 
f. 
To prescribe rules for its own government; 
g. 
To enact for the administration of the System such ordinances and 
regulations, not contrary to law as are consistent with the purposes of the 
System; and 
h. 
To exercise such other purposes as may be necessary for the proper 
discharge of its functions and for the attainment of the purposes of the 
System. 
SEC. 8. 
The Chairperson. - The Chairperson of the Board of Trustees shall 
preside over all its meetings. In his absence, the following shall act as Chairperson in 
the order herein stated: The Executive Director of the System, then the other appointive 
members of the Board in the order of seniority of their appointment. 
SEC. 9. 
Meetings, Quorum. -
a. 
Regular meetings of the Board shall be held once a month. 
b. 
Special meetings may be held as often and whenever necessary as may 
be called by the Chairperson or by the President of the System. 
c. 
A quorum of the Board of Trustees sha\! consist of a maiority of all the 
members holding office at the time of the meeting of the Board is called. 
SEC. 10. 
Annual Report. - On or before the first Friday following the opening 
of the regular session of Congress, the Board of Trustees shall submit to the President 
of the Philippines and to Congress a detailed report setting forth the progress, 
conditions and needs of the System. 
SEC. 11. 
The Executive Director of the System. - Leadership of the 
System is vested in the Executive Director who shall be appointed by the President of 
the Philippines from among the nominees of the System's Board of Trustees. 
SEC. 12. 
Terms and Qualifications of the Executive Director. - The 
Executive Director of the System shall serve for a term of three (3) years without 
prejudice to only one reappointment to the same position. In case of vacancy in the 
Office of the Executive Director of the System before the lapse of the term of the 
incumbent, the person appointed, in accordance with Section 11, to fill the vacancy shall 
serve only for the unexpired portion of the term. The Executive Director shall have the 
appropriate management and financial expertise, and preferably an extensive exposure 
or experience in Hospital Administration of a tertiary level hospital with training! teaching 
facilities. 
SEC. 13. 
Powers of the Executive Director. - The Executive Director of the 
System shall have the following powers and functions: 
a. 
To exercise general supervision over the day to day operations of the 
System; 
3 


b. 
To carry out the pOlicies laid down by the Board of Trustees; 
c. 
To coordinate the activities of the various component medical units of the 
System; 
c. 
To prepare an annual report to the Board of Trustees on the work of the 
past year and the needs of the current year. He/she shall also present to 
the Board of Trustees the annual budget of the System with estimates of 
income and expenditures; 
e. 
To execute and sign in behalf of the System all contracts, deeds and other 
instruments necessary for the proper conduct of business of the System; 
f. 
To exercise such other powers as may be delegated to him/her by the 
Board of Trustees. 
SEC. 14. 
Hospital Director. - Each component unit of the System will have a 
Director appointed by the System's Board of Trustees for a term of six (6) years. The 
Director shall be the Executive Director of the component unit and shall administer, 
direct and coordinate a/l activities of the hospital to carry out its objectives in the 
provision of health care, furtherance of education and research, and participation in 
community health programs. The Hospital Director shall have an extensive experience 
and training in Hospital Administration and proven managerial capability in running a 
tertiary level hospital (preferably with training facilities). 
SEC. 15. 
Other Officers. - The Board of Trustees may appoint such other 
officers as may be necessary for the operation of the System. 
TITLE III 
FISCAL AUTONOMY AND ACCOUNTABILlY 
SEC. 16. 
Fiscal Autonomy. - (a) All income, receipts and fees accruing to 
or derived by the System for its operation shall, upon their collection, be automatically 
released to the System. 
(b) 
All appropriations for government assistance to the System under the 
annual appropriations law and any supplemental or deficiency appropriations shall be 
paid in lump sum. The System shall submit a program of expenditures for the approval 
of Congress. 
SEC. 17. 
Auditing. - All accounts and expenses of the System shall be 
audited by the Commission on Audit. 
TITLE IV 
MISCELLANEOUS PROVISIONS 
SEC. 18. 
Property of the System. - The property of the System shall consist 
of such real and personal property, now owned or reserved for, or may hereafter be 
given, donated, acquired, transferred or conveyed to the System by the Philippine 
Government, its branches and instrumentalities, any foreign government, as well as by 
trusts, foundations, corporations, as persons, alien or domestic, in order to carry out its 
purposes and objectives as set forth herein. 
SEC. 19. 
Budgetary Estimate. - Such sum as may be necessary for the 
implementation of this Act is hereby authorized to be appropriated out of any funds in 
4 


, . 
the National Treasury not otherwise appropriated. Thereafter, the amount needed for 
the operation and maintenance of the System shall be included in the Annual 
Appropriations Act. 
SEC. 20. 
Repealing Clause. - Any provisions of law or rules and regulations 
or any part thereof, inconsistent with the provisions of this Act is hereby repealed, 
amended or modified accordingly. 
SEC. 21. 
Separability Clause. - If any separable provision of this Act be 
declared unconstitutional, the remaining provision shall continue to be in force. 
SEC. 22. 
Effectivity. - This Act shall take effect fifteen (15) days after 
publication in the Official Gazette or in two (2) newspapers of national circulation. 
Approved, 
5