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Quezon City, Metro Manila
Nineteenth Congress
FirstRegu`lar.Sessi
HOUSE BILL NO.
RECEIVED
RATE:Nflun
T"E:fry
BY:-
Introduced by Rep. Anthony R. T. Golez |r. MD, MBAH
EXPLANATORY NOTE
Countries that have robust medical tourism industries reap significant social
and   economic   advantages   such   as   increased   government   revenue,   improved
healthcare quality,  additional  employment opportunities,  and increased  local  and
foreign investments.   In fact, Asian countries like Thailand, India,  Singapore and
Malaysia, have long reaped the benefits of medical tourism, thereby making major
contributions to their economies.
On the  other hand,  the  Philippines  possesses  innate potential  to  establish  a
medical tourism industry through its above average English proficiency, low cost of
living for foreign retirees,  outstanding work ethic,  and  incomparable hospitality.
Despite these, Congress has yet to pass legislation to jumpstart medical tourism in
the   country.     If  passed,   this  bill  will  be  the   much-needed   impetus   for  the
establishment of a significant economic driver in the Philippines.
The proposed bill will create medical tourism zones which will entice local and
foreign investors to establish healthcare facilities, as well as recreational venues, for
medical  tourists.    Further,  Philippine  foreign  retirement programs  will  receive  a
significant   boost   since   expatriates   would   also   require   established   healthcare
facilities.    This  will  increase  foreign  currency  reserves  and  create  thousands  of
employment opportunities for Filipinos.
In addition, the bill will also facilitate vital knowledge sharing between foreign
and  medical  specialists  and  experts  for the  continued  development  of healthcare
quality in the Philippines.
The Department of Health shall likewise be the primary government agency
tasked to implement the bill since the provision of healthcare services to the public
shall be the comerstone of the medical tourism industry.
It is about time for the Philippines to capitalize on this potential key industry
for our country's development.
#Efa`z,R.MD,MBAI]
Malasahit at Baywiha:n Party host
HON. ANTHONY


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Quezon City, Metro Manila
Nineteenth Congress
First Regular Session
HOUSE BILL No. 62 9{
Introduced by Rep. Anthony R.T. Golez Jr. MD, MBAH
AN ACT
ESTABLISHING MEDICAL TOURISM ZONES THROUGHOUT THE
COUNTRY AND APPROPRIATING FUNDS THEREFOR
B_e it enacted by. the Senate and House of Representatives Of the Philippines in
Congress assembled:
SECTION 1.  Sfeorf Tt.fJe. -This Act shall be known as the ``Mcdi.col
Tourism Zones Act."
SEC. 2.  DecJ¢r¢ft.o# a/PoJi.ey. -It is hereby declared the policy of
the State to promote the advancement of medical tourism in the country
which    will    spur    socio-economic    development    through    foreign
investments to the extent allowed by the Constitution and relevant laws
in such activity.
Towards this end, the State adopts a flexible and dynamic policy of
granting long-term lease on private lands to local and foreign investors
for the establishment of health and hospital weliness centers, spas, land
development for commercial use, tourism and other similar productive
endeavors, granting incentives and privileges to such investors, as well as
to local and foreign medical experts and specialists.
SEC. 3.  OZ7/iecft.z7cs. - This Act shall have the following objectives:
(a)     Promote    the    country    as    a    safe,    competitive    and
technologically advanced destination for medical services and leisure;
®)     Encourage  the  participation  of  local  and  foreign  medical
experts  and  specialists, healthcare and  medical education institutions,
hospitalwellnesscenters,resortsandspastobolsterprogramsformedical
tourism;
(c)      Maintain international standards of excellence in all medical
tourism-oriented facilities accommodations and services;


(d)     Ensure  the  success  of  medical  tourism  programs  through
partnerships,   joint   ventures   and   other   cooperative   undertakings
involving local and foreign investors; and
(e)      Improve  specialized  medical  education  of  local  medical
specialists or experts by way of diverse leaming opportunities through
medical education programs with foreign medical specialists or experts.
SEC. 4.  De/t.#i.f€.o#s. -As used in this Act:
(a)      Fore!.g7t   I.7izJesfroc7if   refers   to   the   making   of   an   equity
investment  in  the  Philippines  through  actual  remittance  of  foreign
exchange  or  transfer  of  assets,  whether  in the form  of capital  goods,
patents, formulas, or other technological rights or processes;
(b)     Forez.g7„ctr.rces refer to non-immigrant foreign nationals who
are allowed to reside in the country in accordance with retirement laws of
the Philippines;
(c)      Medt.COZ speci.¢Zt.sis or experts refer to physicians, nurses, medical
technologists or other healthcare practitioners, individually or as a team,
who are skilled or highly trained in any field of medicine on account of
their education, position or experience;
(d)     Mcdz.caj  fotJr{.s#z  refers to  a health holiday coupled with the
provision  of  cosLeffective  medical  services,  in  collaboration  with  the
tourism and health industries, for foreign and local patients alike, who
need medical or other forms of specialized treatment;
(e)      Mcd!.caJ   fowrt.s77z   prog7'fl7#s   refer   to   those   created   by   the
Department  of  Health  which  involve  foreign  medical  specialists  or
experts serving as instructors to local medical specialists or experts to
facilitate the exchange of highly specialized medical knowledge; and
(f)       Mcdz.COZ  fowrfsm  zo7zcs  refer  to  such  areas  identified  by  the
Department  of  Health,  upon  proclamation  by  the  President  of  the
Philippines, which shall be the site of hospital wellness centers, health
establishments, and other recreational establishments.
SEC.  5.      Establishment   of  Medical  Tourism   Zones.   -  The
Department  of Health  shall,  in coordination with  the  Department of
Tourism   and   other   concerned   government   agencies,   identify   and
determine geographic areas in the country which shall be developed as
medical tourism zones, and thereafter submit the same for proclamation
bythePresidentofthePhilippines,includingareasinthecountryalready
designated as special economic zones under Republic Act No. 7916, as
amended,  otherwise known as the  ``Specz.flz  fco73o77g{.c Zo7zc Act a/ 1995,"
Republic Act No. 9593, as amended, otherwise known as the ``To#ri.s7# Act
a/2009" and other related rules and regulations.


SEC. 6.  Cozjer¢ge. - The following may avail of the benefits under
this Act:
(a)    Any  foreign  national,  except  those  classified  as  excluded
classes under Section 29 of Commonwealth Act No. 63, otherwise known
as  ``The  Philippine  Immigration  Act  Of 1940,"  seeking medical  seIviees,
leisure and relaxation;
®)    Qualified foreign retirees who wish to spend their retirement
years in the Philippines;
(c)    Former Filipinos who are holders of foreign passports with no
derogatory record;
(d)    Any  Filipino  citizen  needing  medical  services,  leisure  and
relaxation;
(e)    Foreign  medical  specialists  or  experts  who  may  wish  to
practice in the Philippines in a limited capacity; and
(f)     Local and foreign investors who shall invest in these medical
zones.
SEC. 7.    Incentives  and  Privileges.  - LocaLl or  foreigr\ investors,
participating investors or medical specialists or experts, shall enjoy the
following fiscal incentives and privileges:
(a)      Local  and foreign investors  shall enjoy all applicable fiscal
incentives  under  Republic  Act  No.  11534,  otherwise  known  as  the
`` Corporate Recovery and Tax Incentives for Enterprises Act" .,
ap)     Foreign   medical   specialists   or   experts   shall   enjoy   the
following incentives and privileges:
(1)     Limited practice of profession in the philippines upon
issuance  of  a  Special  Temporary  Permit  from  the  Professional
Regulation Commission or an Alien Employment Permit from the
Department of Labor and Employment, as the case may be, and
subject to the following conditions:
(i)          Their  respective  countries  shall  likewise  allow
Filipino  medical  specialists  and  experts  to  practice  their
profession  in  their  territory  with  the  same  benefits  and
privileges granted to their nationals under this Act; and
(ii)          They   shall   participate   in   specialized   medical
education programs as  mentors,  advisers,  or instructors to
Filipino medical specialists or experts.
The Department of Health shall, in coordination with
the Professional Regulation Commission and the Department
of  Labor  and  Employment,  issue  the  necessary  rules  and
regulations  for  non-Filipino  medical  practitioners,  for  the
effective implementation of this sub-section.


(2)     Exemption   from   the   exit   clearance   and   re-entry
requirements of the Bureau of Immigration;
(3)     Exemption  from  customs  duties  and  taxes  for  the
importation of personal effects, appliances and household furniture
worth Twenty Thousand ($20,000.00) US Dollars;
(4)     Exemption from payment of travel taxes; and
(5)     Exemption from payment of income taxes for income
earned from activities inside the medical tourism zones for a period
of three (3) years reckoned from the start of employment or practice;
(c)      Filipino investors, medical specialists and experts, and other
medical practitioners, who shall invest and work in these medical zones,
shall  enjoy  the  same  benefits  and  privileges  granted  to  their  foreign
counterparts.
SEC. 8.  Offeer Be#e/1.ts. - The clients and patients, both foreign and
local,  of  the  medical  zones  shall  enjoy  the  following  benefits  and
privileges:
(1)     Use of one-stop service centers with full range of personalized
services to patients and their accompanying family members;
(2)     Exemptions from customs duties and tax for the importation
of personal effects,  appliances and household furniture not exceeding
Fourteen Thousand ($14,000.00) US Dollars; and
(3)     Exemption from exit clearance and re-entry permits.
SEC. 9.  Foret.gr Rcft+ccs. - For foreign retirees who need medical
attention and at the same time wish to spend their retirement years in the
Philippines,  they shall enjoy the same benefits granted to clients  and
patients  of  medical  tourism  zones  including  privileges  provided  for
under the Philippine Retirement Authority (PRA) such as:
(a)     Permanent    non-immigrant    status    with    multiple-entry
privileges through the Special Resident Retiree's Visa (SRRV) to be issued
by the PRA;
@)     Exemption from payment of travel tax as provided under the
SRRV;
(c)      Conversion of the required time deposit to active investments,
such  as  the  purchase  of  condominium  units  and  proprietary,  golf
membership shares;
(d)     Tax free remittance of pensions and annuities; and
(e)      Such other benefits provided by the PRA to holders of SRRV.
SEC.  10.   Li."t.toff.o#.  - In the case of foreign investors qualified
herein,  the  lease  of  private  lands  shall  be  limited  to  tourism  and
establishment of health center projects with an investment of not less than


Five Million ($5,000,000.00) US Dollars, sixty percent (60°/o) of which shall
be infused within three years from the signing of a lease agreement.
SEC.11.  Implementing Rules and Regulations.  -Wit:him sixty (60)
days from the effectivity  of this Act,  the Secretary of Health shall,  in
coordination with the Department of Tourism  and  other  government
agencies  concerned,  issue  the  necessary  rules  and  regulations for  the
effective implementation of this Act.
SEC.  12.   AppropH.aft.o#.  -  The  amount necessary  for  the  initial
implementation of this Act shall be charged against the current year's
appropriations of the Departments of Health and Tourism.   Thereafter,
such sum as maybe necessary for its continued implementation shall be
included in the annual General Appropriations Act.
SEC. 13.  Sep¢rflbt7£.fry CJ¢c/se. - In case any provision of this Act is
declared  invalid  or  unconstitutional,   the  remaining  provisions  not
affected thereby shall continue to be in full force and effect.
SEC.   14.     Rcpc¢Zi."g  CJ&cisc.   -   All  laws,  presidential  decrees,
executiveorders,orrulesandregulationswhichareincousistentwithany
provisions  of  this  Act  are  hereby  repealed,  amended  or  modified
accordingly.
SEC. 15
days  after  its  publication  in  the  O#cz.flz  Gazcffg  or  in  a  newspaper`  of
general circulation.
Approved,
£#ecff.t„.fry CJ¢#se. - This Act shall take effect fifteen (15)