14& Congress of the Republic 
) 
of the Philippines 
1 
First Regular Session 
1 
S. No. 1
4
 
Introduced by Senator Aquilino Q. Pimeatel, Jr. 
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 
conciousness among them. 
As a pariner in promoting people's health, the government must provide 
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. 
assistance to private hospitals to ensure their viability and high quality service. 
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 Iocal 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 medica1 services 
afforded by private hospitals to help build a healthy nation. 
The immediate passage of this bill is therefore requested. 
. PIMENTEL, JR. 


14“ Congress of the Republic 
) 
of the Philippines 
1 
First Regular Session 
1 
S.NQ. 1 1 4 4  
In&oduced by Senator Aquilino Q. Pimentel, Jr. 
AN ACT 
PROVIDING ASSISTANCE TO PRIVATE HOSPITALS BY GRANTING 
THEM INCENTIVES 
ESTABLISHING A PRNATE-HOSPITAL DEVELOPMENT PLAN AND 
SECTIQN 1. Tit2e. - This Act shall be known as the “Private HospitaI 
Assistance Act of 2007.’‘ 
SEC. 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 promuIgated and the private hospital fund established. 
I. PRIVATE HOSPITAL DEVELOPMENT PLAN 
SEC. 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 underserved 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 
SEC. 4. Priuate 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. 
SEC. 5. The Prinate 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. 
SEC. 6. Audit of the Pvivnte Hospital Fund. - The disbursement of the 
Private Hospital Fund shaIl be subject to audit by the Commission on Audit. 
SBC. 7. Repealing Clcruse. - Any provision of law, rules and regulations 
inconsistent with this Act is hereby repealed or modified accordingly. 
SEC. 8. Eflectivity. - This Act shall take effect fifteen (15) days from its 
publication in the Oficial Guzefte or in two (2) national newspapers of general 
circulation. 
Appraved,