FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Our country's ability to ensure optimum health for every Filipino hinges on the degree 
of priority given to health research and development (R & D) activities. Article 11, Section 15 
of the 1987 Constitution provides that: 
"The State shall protect and promote the right to health of the people and 
instill healfb consciousness among them." 
Although this right is guaranteed by the 1987 Constitution, access to health care system in 
the Philippines especially by the poor is still hampered by financial, physical, social and 
cultural barriers. 
To help achieve the country's vision of universal primary health care services, it is not 
enough to be contented with the present capacity of the country's health care system. It is 
important to build the country's capability for research and development because these can 
fuel the necessary innovation that will lead to a responsive and efficient health care system. 
To achieve this, the country must provide for a favorable research environment 
wherein government agencies, non-government organizations, public and private hospitals, 
academic institutions and private agencies can optimize their research activities. However, a 
closer scrutiny at the present system would reveal that current researches are 
uncoordinated, fragmented and duplicated which precludes the optimal use of time, effort 
and resources. 
The proposed Philippine National Health Research System bill will address these 
current problems by institutionalizing the Philippine National Health Research System 
(PNHRS) and create the Philippine National Health Research Fund (PNHRF). 
PNHRS if recognized and institutionalized by statutory mandate shall serve the 
followina functions: 
koduce new knowledge through research; 
Develop a national and global network of researchers, research organizations, and 
other members of the health research community; 
Secure sustainable financing for health research and development; 
Build capacities for health research and development activities and encourage 
individuals to pursue research as a career; 


Inculcate internationally and culturally accepted ethical standards and principles 
especially in researches involving human subjects and participants; 
Deepen the involvement of stakeholders; 
Ensure public access to the information and other outputs generated by the health 
research systems; and 
Encourage the utilization of research results in the form of products, technologies, 
programs and services 
This bill, therefore, seeks to oblige a number of government institutions to allocate a 
particular portion of their gross annual revenue or charge additional fees for health research 
sought. 
and development activities. For these 
of this bill is earnestly 
Senator 
2 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
) 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
I 
I 
Introduced by Senator Richard J. Gordon 
AN ACT 
INSTITUTIONALIZING THE PHILIPPINE NATIONAL HEALTH RESEARCH SYSTEM, 
ESTABLISHING THE PHILIPPINE NATIONAL HEALTH RESEARCH FUND, 
PROVIDING FOR ITS ADMINISTRATION AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
Article 1 
SECTION 1. Short Title. This Act shall be known as the "Philippine National Health 
Research System Act of 2008." 
SEC. 2. Declaration of Policy. It is hereby declared the policy of the State to: 
(A) protect and promote the right of health to the people and instill health 
consciousness among them: and 
(B) improve the quality of life of every Filipino through health research and 
development initiatives. 
SEC. 3. Definition of Terms, For purposes of this Act, the term: 
(A) "Health" is defined as a state of optimal physical, mental and social well-being 
and ability to function at the individual level. 
(B) "Research and development (R & D) for health" refers to generation of 
knowledge to identify and deal with health problems, health system and policies as well as 
those that impact on health, 
(C) "Philippine National Health Research System (PNHRS)" is a framework 
anchored on the principles of Essential National Health Research on inclusiveness, 
participation, quality, equity, efficiency and effectiveness, which connect to, and converge 
with, the wider health, economic, political, educational and science and technology (S&T) 
systems of the country. 
(D) "National Unified Health Research Agenda" contains the research priorities 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
determined by the country's stakeholders which serve the health needs of the population 
especially the marginalized, disadvantaged and those with special needs. This agenda is a 
platform to advocate for local, national, and international support, 
(E) "Core agencies" refer to the main national health and health related agencies 
namely: the Department of Health (DOH), the Department of Science and Technology- 
Philippine Council for Health Research and Development (DOST-PCHRD), University of 
the Philippines Manila -National Institutes of Health ((UPM-NIH), and the Commission on 
Higher Education (CHED). 
(F) "Philippine National Health Research Fund (PNHRF)" refers to a special fund 
which by legislative action segregates specified revenues for health research purposes. 
(G) "Health research stakeholders" include the national and the local private and 
public health agencies, policy makers, the academe, medical societies, people's 
organizations, and others which may have the roles of health researchers, program 
administrators and beneficiaries. 
(H) "Management of Fund" -involves the generation, allocation and utilization, of the 
PNHRF, including government and non-government sources, and both domestic and 
international sources. 
Article 2 
The Philippine National Health Research System 
SEC. 4. Creation of the Philippine National Health Research System. The 
Philippine National Health Research System (PNHRS) is hereby constituted to improve the 
health status, productivity, and the quality of life of Filipinos by: 
(1) Ensuring that health research is linked to the health system needs; 
(2) Ensuring that investments in health research yield the most benefit; 
(3) Promoting good governance in research towards high performing and ethical 
health research organizations; 
(4) Engaging in national and international partnerships and networks for health 
research development. 
SEC. 5. Composition of the PNHRS. The PNHRS shall be composed of the 
Governing Council (GC), Steering Committee, the Technical Working Committees (TWC), 
the Secretariat, and the whole health research community. The interrelationships among 
these various components shall be described in the IRR of this Act. 
4 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
SEC. 6. Creation of the PNHRS Governing Council. The PNHRS GC, whose 
functions are enumerated in Section 7 shall be composed of the following: 
(1) The Secretary of the Department of Science and Technology; 
(2) The Secretary of the Department of Health or hislher designated permanent 
representative; 
(3) The Chair of the Commission on Higher Education; 
(4) The Chancellor of the University of the Philippines Manila; 
(5) The National Nutrition Council Director; 
(6) The PCHRD Director; 
(7) President of the Philippine Health Insurance Corporation (w); 
(8) The Director General of the National Economic Development Agency (NEDA) 
(9) The Professionals Regulation Commission (PRC) Chairperson 
(IO) Representative from the Philippine health industry; 
(11) Representative from a non-government organization (NGO); 
(12) Representative from Academe; 
(13) Representative from League of Governors; and 
(14) Representative from the Regional Health Research System. 
Representatives 1-9 shall serve as Ex-Officio Members while those mentioned in 
numbers 10 to 14 shall be nominated by the core agencies, and appointed by the 
President of the Philippines for a term of three (3) years; provided however, that for those 
first appointed representatives from Philippine health industry, NGO network and academe 
shall serve for three (3) years and those first appointed representatives from the League of 
Governors and the Regional Health Research Development Committees shall serve for 
two (2) years, The qualifications of the representatives mentioned in subparagraphs 10-14 
shall be provided for in the Implementing Rules and Regulations of this Act. 
Majority of the members of the GC shall constitute a quorum in all meetings. 
SEC. 7. Functions of the PNHRS Governing Council. The PNHRS GC shall: 
(1) Set policies and directions for the PNHRS; 
(2) Periodically review and approve the long-term plans and programs of the 
PNHRS: 
(3) Evaluate and approve the National Unified Health Research Agenda developed 
and integrated by the Core Agencies, and identify areas that will serve as the 
5 


5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
foci of the National Health Research Agenda; 
(4) Establish the criteria for stakeholders that can apply for grants for the approval 
of projects and programs; 
(5) Approve investments of the PNHRF created under Section 11 of this Act; 
(6) Review, grants and/or donations to any government agency relative to health 
research from domestic and international funding agencies; 
(7) Review and approve research projects and programs; and 
(8) Create committees as the need arises. 
SEC. 8. CreationlFunctions of the Steering Committee. The GC shall create the 
Steering Committee composed of the six (6) PNHRS Technical Working Committee 
Chairs. The functions of the Steering Committee are: 
(1) Recommend policies to the Governing Council: 
(2) Perform oversight function on the implementation of PNHRS activities; 
(3) Coordinate activities of the six (6) PNHRS committees, and 
(4) Monitor and report the progress of the committees’ programs to the Governing 
Council. 
SEC. 9. Creation of PNHRS Committees. The GC shall create the following 
Committees composed of representatives from the Core Agencies and various 
stakeholders: 
(1) Research Management - provide technical and policy advice in setting health 
research agenda, formulating policies and addressing matters related to priority setting, 
proposal review and fundinglfund management, and project monitoring and evaluation; 
(2) Ethics - ensure adherence to universal ethical principles and values on the 
dignity of health research participants; 
(3) Capacity Building - provide technical and policy advice in the development and 
continuous supply of quality human and institutional resources for health research: 
(4) Structure, Organization, Monitoring and Evaluation - provide technical and 
policy advice to ensure the stewardship and leadership of the PNHRS espoused health 
research that connects to health needs and outcomes, policy and action; 
(5) Research Utilization - provide technical and policy advice to develop and 
sustain knowledge management systems, communication and advocacy strategies to 
connect research to health needs and outcomes, policy and action; 
6 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
(6) Resource Mobilization - provide technical and policy advicelsupport to secure 
sustainable financing, and ensure equity, effective and efficient use of resources for health 
research and development. 
The Committees shall develop, implement, and monitor their respective strategic 
plans. 
SEC. 10. The Executive Director and Secretariat. The PCHRD Executive 
Director shall be the PNHRS Executive Director, responsible for, among others, the 
coordination and oversight functions of the System assisted by the PCHRD secretariat. 
Article 3 
The Philippine National Health Research Fund 
SEC. 11. Creation and Nature of the Philippine National Health Research 
Fund. 
A Special Research Fund hereinafter called the Philippine National Health 
Research Fund (PNHRF) is hereby created under the management of the GC through the 
Secretariat. The PNHRF shall not be used for purposes other than those provided in 
Section 12 of this Act. Moreover, no portion of the funds of the PNHRS or income thereof 
shall accrue to the General Fund of the national government and its political subdivisions, 
instrumentalities and other agencies including government-owned and controlled 
corporations except as may be allowed under this Act. 
SEC. 12. Uses of the PNHRF. The main objective of this fund is to provide 
sustained financial support for knowledge management and its translation into efficient and 
effective health- policies and service delivery; a strengthened health care system; and 
improved health for all Filipinos. It shall ensure that the Government invests in health 
research as part of its commitment to secure the well-being of its citizens. Specifically, it 
shall be utilized for any or all of, but not limited to, the following: 
(1) Support quality ethical research and the application of ethical principles to health 
research and development activities; 
(2) Create a robust health research environment in the Philippines that will attract, 
develop and keep excellent researchers and provide them with the opportunity to 
contribute to the improvement of people's health in the country and the world; 
(3) Fulfill an integrated health research agenda across disciplines, sectors and regions 
that reflect the emerging health needs of Filipinos and the evolution of the health 
system, and supports' health policy decision-making; 
7 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
(4) Ensure the promotion research undertakings that meet the highest international 
scientific standards of excellence and ethics and that pertain to all aspects of 
health, including bio-medical research, clinical research and research on health 
systems, health services, the health of populations, societal and cultural 
dimensions of health and environmental influences on health; 
(5) Address emerging health opportunities, threats and challenges (e.g. avian flu, 
SARS) and accelerate the discovery of cures and treatments and improvements to 
health care, prevention and wellness strategies; 
(6) Promote the dissemination of research-based knowledge, technologies, and 
innovations and the application of health research to improve the health of Filipinos 
and, 
(7) Provide support for the participation of Filipino health scientists in international 
collaboration and partnerships in health research. 
SEC. 13. Sources of PNHRF and Method of Collection. 
(1) The PNHRF shall be sourced out from the following agencies, but not limited to: 
a. One percent (1%) of the gross annual revenue collected by the PHlC from 
premium payments until the PNHRF reaches the sum of 10 Billion pesos; 
Statistics Office from birth certificate issuances; 
b. Five percent (5%)of the annual revenue collected by the National 
c. Fifteen percent (15%)of the total fees collected by the Professional 
Regulation Commission frorn the issuance and renewal of licenses of health 
professionals such as but not limited to physicians, nurses, dentists, pharmacists, 
medical technologists, midwives, dieticians, and veterinarians; 
d. Any other appropriations from the General Appropriations Act; and 
e. Donations and grants from domestic and international sources duly 
acceptedlapproved by the GC which do not constitute a breach of the Philippine 
laws and recognized international treaties. 
(2) All agencies mentioned in the preceding paragraph are hereby directed to 
automatically remit semi-annually the amount prescribed by this Act to the specified 
account established by the GC on or before the 31" day of January and July of each year. 
This does not preclude the agencies from making advance contributions provided they fall 
within the specifications of this act. 
8 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
(3) The rates indicated in Paragraph 1 hereof shall be reviewed and updated every 
five (5) years. 
SEC. 14. Management and Allocation of Fund 
(1)The GC through the secretariat shall manage the funds in accordance with 
generally accepted auditing standards; 
(2) The GC shall allocate two percent (2%) from the fund for research operational 
expenses. 
(3) The GC is authorized to invest the PNHRF that was not allocatedlobligated 
during the current year in any of the following: 
a. Interest-bearing bonds, securities, and other evidence of indebtedness of 
the Republic of the Philippines and other evidences to which full faith and credit 
and unconditional guarantee of the Republic of the Philippines are pledged. 
b. In interest-bearing deposits and loans to or securities in any domestic 
bank doing business in the Philippines: Provided, that in the case of such deposits, 
this shall not exceed at any time the unimpaired capital and surplus or total private 
deposits of the depository bank, whichever is smaller. Provided, further, that said 
bank shall first have been designated as depository for this purpose by the 
Monetary Board of the Bangko Sentral ng Pilipinas (BSP);and 
c. In preferred stocks of any solvent corporation or institution created or 
existing under the laws of the Philippines: Provided, that the issuing, assuming, or 
guaranteeing entity or its predecessor has paid regular dividends upon its preferred 
or guaranteed stocks for a period of at least three (3) years immediately preceding 
the date of investment in such preferred or guaranteed stocks. Provided further, 
that if the stocks are guaranteed the amount of stocks so guaranteed is not the 
excess of fifty percent (50%) of the amount of the preferred common stocks as the 
case may be of the issuing corporation. Provided furthermore, that if the 
corporation or institution has not paid dividends upon its preferred stocks, the 
corporation or institution has sufficient retained earnings to declare dividends for at 
least two years on such preferred stocks and in common stocks options. 
The Board can also invest in common stocks of any solvent corporation or 
institution created or existing, under Philippine laws, in the stock exchange with proven 
track record of profitability and payment of dividends over the last three (3) years or in the 
9 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
common stocks of a newly organized corporation about to be listed in the Philippine stock 
exchange. Provided, finally, that such duly organized corporation shall have been rated 
"A," double "A's" or triple "A's" by authorized accredited domestic rating agencies or in 
mutual funds including allied investments. 
(4) The GC shall allocate not less than sixty percent (60%) but not more than 
seventy five percent (75%) to priorily research programs and agenda as defined by the 
National Unified Health Research Agenda and to UPM-NIH, as lead implementing agency 
for health research, not less than twenty five percent (25%) but not more than forty percent 
(40%) of the funds. 
(5) The GC, through the Secretariat shall submit periodic reports to agencies 
mentioned in Section 6 on the use of the PNHRF. 
SEC. 15. Creation of the Investment Advisory Group. 
(1) An Investment Advisory Group is hereby established to make recommendations 
to the GC on matters of investments from the PNHRF. The group shall recommend the 
method of investment that will yield the highest return for the PNHRF. 
(2) The advisory group shall be composed of the Representatives of the Core 
Agencies to be appointed by their respective heads and any three of the following, for a 
term of three (3) years: 
a. An economist or market analyst with extensive knowledge of the financial 
and stock markets; 
b. A representative from the Bangko Sentral ng Pilipinas (BSP) 
c. A member from the Philippine Bar; 
d. A representative from the research community. Provided, that the 
representative from the BSP shall always be a member of the Advisory Group. 
Article 4 
Final Pro visions 
SEC. 16. Monitoring, Valuation, Accountabilities, and Annual Report. Regular 
monitoring and evaluation mechanism shall be done by the GC through the secretariat to 
determine the accountabilities of the System to the Contributing Agencies. The 
specificsldetails of monitoring, evaluation, accountabilities and annual reporting shall be 
provided for in the Implementing Rules and Regulations of this Act. 
SEC. 17. Implementing Rules and Regulation. The Core Agencies shall 
10 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
promulgate the implementing rules and regulations of this Act within a year after the 
effectivity hereof. 
SEC. 18. Separability Clause. 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. 19. Repealing Clause 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 repealed, modified or amended 
accordingly. 
SEC. 20. Effectivity Clause. This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved. 
11