THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES } 
First Regular Session 
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INTRODUCED BY HON. MANUEL B. VILLAR JR. 
EXPLANATORY NOTE 
Republic Act No. 4226, otherwise known as the “Hospital License Act,” has been 
enforced for over 20 years. 
Despite this, a number of hospitals and health service 
establishments in the country continue to violate its provisions, some even manage to operate 
without any license. 
There is a’need to strengthen the existing law and provide stiffer penalties to hospitals 
and health service establishments who violate it. This is the only way we can protect our 
people from unscrupulous health practitioners and ensure Filipinos of getting quality health 
care they are deserving of. 
This bill, which shall be known as the “Hospital and Health Service Establishments 
Licensure Act,” vests quasi-judicial functions on the Bureau of Licensing and Regulation to 
enable it to investigate and impose appropriate sanctions on administrative cases filed against 
any hospital or health service establishment. The measure also increases the fine imposed on 
persons or associations who operate hospitals or health service establishments without first 
obtaining a license, or who violate this Act. From a measly P500.00 fine for the first offense 
and P1,OOO.OO for each subsequent offense, the fine has been increased to P5,OOO.OO for the 
first offense and not less than P100,OOO.OO for each subsequent offense. 
The passage of this bill is fervently called for. 
Senditor 


THIRTEENTH CONGRESS OF THE 
@Au 
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REPUBLIC OF THE PHILIPPTNES 1 
First Regular Session 
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SENATE 
S. No. 
611 
INTRODUCED BY HON. MANUEL B. VILLAR JR. 
AN ACT 
AMENDING REPUBLIC ACT 4226 OTHERWISE KNOWN AS THE 
“HOSPITAL LICENSURE ACT” 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
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“SEC. 1. Title. - This Act shall also be known as the HOSPITAL AND 
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“SEC. 2. Definitions. - As used in this Act - 
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“(a) ‘Hospital’ - means a place devoted primarily to the maintenance and 
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operation of facilities for the diagnosis, treatment and care of individuals suffering 
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from illness, disease, injury or deformity, or in need of obstetrical or other medical 
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and nursing care. The term ‘hospital’ shall also be construed as any institution, 
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building or place where there are installed beds or cribs [or bassinets] for twenty-four- 
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hour use or longer by patients in the treatment of diseases, diseased conditions, 
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injuries, deformities, or abnormal physical and mental states, maternity cases, and all 
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institutions such as those for convalescence, [sanatoria1 or] sanitaria1 care, infirmities, 
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nurseries, dispensaries and such other names by which they may be designated. 
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thereof. 
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SECTION 1. Sections 1, 2(d), 3,5 6(a, by cy d, e, f, g, h), 7, 9, 10, 12, 15, 16, 17 and 
18 of Republic Act 4226, otherwise known as the 66Hospital Licensure Act,” are hereby 
amended to read as follows: 
HEALTH SERVICE ESTABLISHMENTS LICENSURE ACT.” 
“(b) 
‘Government Hospital ’ - means a hospital operated and maintained 
either partially of wholly by the national, provincial, municipal or city government or 
other political subdivision, or by any department, division, board or other agency 
“(c) ‘Private Hospital ’ - means one which is privately-owned, established 
and operated with funds raised or contributed through donations, or by private capital 


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or other ’ means, by private individuals, association, corporation, religious 
organization, firm, company or joint stock association. 
“[(d) ‘Clinic ’ - means a place in which patients avail of medical consultations 
or treatments on an outpatient basis. However, any clinic or dispensary where there is 
at least six beds or cribs of bassinets installed for twenty-four hour use by patients 
shall be construed to fall within the definition of a hospital described in this Act.] 
“(D) [(e)]” Licensee - means any person, firm, partnership or organization 
granted a license to operate and maintain a hospital according to an approved 
minimum standard. 
“(E) ‘Health service establishments’ - shall refer to institutions, other than 
hospitals, provide diagnostic, therapeutic, rehabilitative, and/or other health care 
services, including but not limited to, medical clinics, ambulatory surgical clinics, 
dental prosthetic laboratories, overseas workers clinics, blood banks, HIV testing 
laboratories, free standing diagnostic laboratories, organ bank storage facilities, free- 
standing dialysis center and health-related radiation facilities. 
“(F) ‘Medical Ancillary services ’ - shall refer to radiological, laboratory and 
pharmaceutical services in hospitals. 
“(H) (g) ‘Secretary” - shall refer to the Secretary of Health 
“SEC. 3. CONSTRUCTION PERMIT. - No hospital shall be constructed or 
shall undergo renovation or expansion unless plans have been approved and 
construction permits issued by the licensing agency as defined by the Act.” 
“SEC. 5. Licensing Agency - For purposes of setting standards in hospital 
construction and operation, the Bureau of [Medical Services] LICENSING AND 
REGULATION, in addition to its present duties, shall act as the licensing agency. 
The Secretary of Health shall reorganize [this] The Bureau of [Medical Services] 
LICENSING AND REGULATION AND EXPAND ITS ORGANIZATIONAL 
STRUCTURE TO INCLUDE POSITION POSITIONS FOR [to include a staff of] 
hospital 
architects, 
hospital 
administrators, 
DOCTORS, 
NURSES, 
NUT€UTIONISTS/DIETICIANS, [sanitary] engineering, LAWYERS as such 
personnel as may be necessary to carry out the purposes of this Act. [without 
necessarily increasing the present personnel strength of this Bureau.]” 
“SEC. 6. Power and Duties of Licensing Agency. - The Bureau of [Medical 
Services] LICENSING AND REGULATION, [or the licensing agency] shall have the 
following powers and duties: 
[e] A. To grant licenses for the operation and maintenance of hospital AND 
HEALTH SERVICE ESTABLISHMENTS and suspend or revoke the same in 
accordance with the provisions of this Act. 
[a To conduct an ocular survey of all existing hospitals in the Philippines, 
government or private, with a view to determine their fitness to operate considering 
their facilities and physical plant.] 
b. 
[To prescribe standards plans for government hospital plants in 
consultation with the Division of Architecture, Bureau of Public Works.] 
TO 
ESTABLISH STANDARD REQUIREMENTS FOR THE PHYSICAL FACILITIES, 
PERSONNEL AND PHYSICAL PLANT OF ALL HOSPITAL AND HEALTH 
SERVICE ESTABLISHMENTS IN THE PHILIPPINES. 


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[fl C. To INSPECT AND MONITOR [make periodic inspection of] all 
hospitals and HEALTH SERVICE ESTABLISHMENTS [so as to check] 
TO 
ENSURE THEIR CONTINUED compliance with the rules and regulations [legally] 
promulgated [or with the provisions ofl IN ACCORDANCE WITH this Act and to 
make recommendations to the directors or administrators of SUCH hospitals OR 
HEALTH SERVICE ESTABLISHMENTS for the correction of [defects] 
DEFICIENCIES found during such inspections. 
[c] D. To approve plans for hospitals [plans] BUEDINGS, government or 
private, and to issue permits authority to construct RENOVATE OR EXPAND 
hospitals in accordance with the provision of this Act. 
E. 
TO PROVIDE CONSULTATIVE AND ADVISORY SERVICES 
RELATIVE 
TO 
THE 
ESTABLISHMENT AND CONSTRUCTION OF 
HOSPITALS AND HEALTH SERVICE ESTABLISHMENTS. 
F. TO LEVY, ASSESS AND COLLECT THE APPROPRIATE PERMIT 
FEE, REGISTRATION FEE, LICENSE FEE AND SURCHARGES PURSUANT TO 
ITS BASIC FUNCTIONS. 
G. TO INVESTIGATE, HEAR AND DECIDE ADMINISTRATIVE CASES 
INITIATED BY THE BUREAU OR FILED BY ANY PERSON AGAINST A 
HOSPITAL OR HEALTH SERVICE ESTABLISHMENT VIOLATING THE 
PROVISION OF THIS ACT AND ITS IMPLEMENTING RULES AND 
REGULATIONS AND TO IMPOSE APPROPRIATE ADMINISTRATIVE 
SANCTION OR PENALTY PROVIDED IN THIS ACT. 
H. TO PROMULGATE RULES AND REGULATION GOVERNING THE 
CONDUCT OF ADMINISTRATIVE HEARING: 
PROVIDED, THAT SUCH 
PROCEEDING, THE BUREAU SHALL NOT BE BOUND BY THE TECHNICAL 
RULES OF EVIDENCE OF THE RULES OF THE COURT: 
PROVIDED, 
FURTHER, THAT THE SAME MAY BE APPLIED IN 
A SUPPLETORY 
MANNER. 
I. TO ADMINISTER OATHS AND AFFIRMATIONS, AND TO ISSUE 
SUBPOENA AND TESTIFICANDUM AND SUBPOENA DUCES TECUM 
REQUIRING THE ATTENDANCE AND TESTIMONY OF PARTIES AND 
WITNESSES, AND/OR THE PRODUCTION OF SUCH BOOKS, CONTRACTS, 
CORRESPONDENCE, RECORDS, STATEMENT OF ACCOUNTS AND OTHER 
DOCUMENTS AS MAY BE MATERIAL TO THE INVESTIGATION BEING 
CONDUCTED BY THE BUREAU. 
J. 'TO EXERCISE CONTEMPT POWERS AND IMPOSE APPROPRIATE 
PENALTIES. 
K. TO CALL THE ASSISTANCE OF ANY DEPARTMENT, OFFICE, 
AGENCY OR INSTRUMENTALITY OF THE NATIONAL OR LOCAL 
GOVERNMENT FOR THE EFFECTIVE IMPLEMENTATION OF THIS ACT. 
L. 
TO CAUSE THE PROSECUTION OF ALL CASES INVOLVING 
VIOLTING OF THIS ACT AND ITS IMPLEMENTING RULES AND 
REGULATIONS. 


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M. TO SUMMARILY ORDER THE CLOSURE OF HOSPITALS AND 
HEALTH SERVICE ESTABLISHMENTS OPERATING WITHOUT A LICENSE. 
[d] N. To [keep a permanent] MAINTAIN a register of [approved] hospitals 
AND HEALTH SERVICE ESTABLISHMENTS [or those] issued licenses to operate 
indicating the name of the [hospital] FACILITY, address or location, [type of 
hospital] CLASSIFICATION, and name of the director or administrator, ownership, 
number of authorized beds [and bassinets] and such other pertinent data as may be 
necessary. 
[g. To publish yearly, a list of all approved LICENSED hospitals AND 
HEALTH’ SERVICE ESTABLISHMENTS indicating the name, location, category, 
classification, authorized beds and name of the director or administrator.] 
[h] 0. To submit yearly reports to the Secretary of Health, [the Speaker of the 
House of Representatives, the President of the Senate] and the chairman [and 
members] of the Committees on Health of both Houses of Congress [;I. [SI Such 
reports SHALL include a list of [approved] all LICENSED hospitals AND OTHER 
HEALTH SERVICE ESTABLISHMENTS indicating the name of the [hospitals] 
ESTABLISHMENT, ITS location, bed capacity and name of the director or 
administrator, [and make] SUCH REPORTS SHALL ALSO CONTAIN 
a 
recommendation on hospitals OR SIMILAR needs or requirements [for hospital 
service] in certain communities that do not enjoy such hospital service] HEALTH 
FACILITIES. 
P. TO PROMULGATE AND IMPLEMENT THE RULES AND 
REGULATIONS 
GOVERNING 
THE 
REGISTRATION, 
LICENSURE 
ESTABLISHMENTS AND TO PERIODICALLY REVIEW AND AMEND THE 
SAME, SUBJECT TO THE APPROVAL OF THE SECRETARY AND IN 
CONSULTATION WITH THE SECTORS CONCERNED, PROVIDED, THAT 
SUCH RULES AND REGULATIONS SHALL BE IN ACCORDANCE WITH THE 
PROVISION OF THIS ACT. 
“SEC. 7. [Filing of Application for Construction Permit] APPLICATION 
AND ISSUANCE OF A PERMIT TO CONSTRUCT - Application for a permit to 
construct a hospital OR HEALTH SERVICE ESTABLISHMENT shall be submitted 
to the Office of the Director, Bureau of [Medical Services] LICENSING AND 
REGULATION in a form prescribed by the latter and accompanied by a plan of the 
(hospital plant) FACILITIES proposed to be constructed. [The application shall state 
the name of the hospital, ownership, number of beds proposed to be operated, location 
and type of hospital to be constructed.] THE PERMIT TO CONSTRUCT ISSUED 
BY THE BUREAU SHALL BE A CONDITION PRECEDENT FOR THE 
ISSUANCE OF A BUILDING PERMIT BY THE OFFICIAL OF THE 
MUNICIPALITY OR CITY WHERE THE FACILITY IS PROPOSED TO BE 
CONSTRUCTED. 
“SEC. 8. Minimum Standards of Construction. - In order that a permit to 
construct a hospital can be issued, the hospital plan shall proved sufficient bed space 
for the hospital bed capacity proposed, a laboratory room, an operating room, 
including work rooms for sterilization, anesthesia preparation, etc., an X-ray or 
radiology room, pharmacy, dispensary or out-patient department, delivery room, 
isolation, autopsy room or morgue, sufficient quarters for residents, nurses, attendants 
and helpers and sufficient number of toilet facilities.]” 
“[Wards shall be constructed such that segregation of sexes is observed and as far as 
practicable classified as to the type of cases to be confined.] 


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“SEC. [9] 8. 
Application for Registration and Issuance for License - 
Application 
for 
registration 
of 
a 
hospital 
OR 
HEALTH 
SERVICE 
ESTABLISHMENT and for the issuance of a license for its operation and 
maintenance INCLUDING MEDICAL ANCILLARY SERVICES shall be filed with 
the Bureau of [Medical Services] LICENSING AND REGULATION OR ITS 
DEPUTIZED OFFICES in a form prescribed by it: PROVIDED, THAT, THE 
BUREAU SHALL COORDINATE WITH THE BUREAU OF RESEARCH AND 
LABORATORIES, RADIATION HEALTH SERVICE, AND THE BUREAU OF 
FOOD AND DRUGS FOR THE LICENSING OF THE MEDICAL ANCILLARY 
SERVICES. Registration may be made and license issued upon compliance with [the 
provisions of Section Eight hereof and] the rules and regulations prescribed by the 
[licensing agency] BUREAU pursuant to the provisions of this Act.” 
SEC. 9. VALIDITY AND RENEWAL OF LICENSE - THE INITIAL 
LICENSE TO OPERATE AND MAINTAIN A HOSPITAL OR HEALTH SERVICE 
ESTABLISHMENT SHALL BE VALID FOR A PERIOD OF TWO YEARS FROM 
ITS DATE ISSUANCE, AND SHALL BE RENEWED REGULARLY, SUBJECT 
TO THE RULES AND REGULATIONS OF THE BUREAU. 
SEC. 10. Inspection - [Permit to construct a hospital or a major portion 
thereof and] The license to operate A HOSPITAL OR HEALTH SERVICE 
ESTABLISHMENT [and maintain the same] shall be issued by the [licensing agency] 
BUREAU only after a representative of the licensing agency has conducted [an 
ocular inspection] A COMPREHENSIVE ON SITE INSPECTION and certified that 
the applicant has satisfactorily complied with requisites prescribed in this Act AND 
ITS IMPLEMENTING RULES AND REGULATIONS. [The license to operate a 
hospital shall be renewed every year upon payment of the prescribed fees.] 
SEC. 11. SUSPENSION AND Revocation of the License - The [Licensing 
Agency] BUREAU, AFTER CONDUCTING AN ADMINISTRATIVE HEARING, 
WITH DUE NOTICE LICENSEE AND WITH THE APPROVAL OF THE 
SECRETARY, may suspend or revoke [a] THE license [already issued] TO 
OPERATE AND 
MAINTAIN A 
HOSPITAL OR 
HEALTH SERVICE 
ESTABLISHMENT OR ANY PERSON, PARTNERSHIP, ASSOCIATION 
CORPORATION OR PRIVATE ENTITY, for any of the following grounds: (a) 
[repeated 3 violation by the licensee of any provision of this Act or any other existing 
laws; (b) [repeated ] violation of rules and regulations prescribed in the 
implementation of this Act; or (c) [repeated ] failure to make necessary correction or 
adjustment required by the licensing agency in the improvement OR 
MAINTENANCE of facilities and services. 
SEC. 12. Hearing - Any person, association, corporation, or any other private 
entity who have been refused a license to operate and maintain a hospital OR A 
HEALTH SERVICE ESTABLISHMENT or whose license has been suspended or 
revoked shall be entitled to administrative hearing to be conducted by the Secretary 
[of Health and his two undersecretaries] OR HIS DULY AUTHORIZED 
REPRESENTATIVE(S) to determine the Ijustifiability] VALIDITY of such denial, 
suspension or revocation of the license: Provided, That the license may resort to the 
courts, as in mother cases provided by the law. 
SEC. 15. Rules and Regulations - Bureau of [Medical Services] LICENSING 
AND REGULATION acting as a licensing agency and subject to the approval of the 
Secretary .of Health, shall promulgate rules and regulations to implement the 
provision of this Act. 


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SEC. 16. Classijkation of Hospitals - The licensing agency shall study and 
adopt a system of classifying hospitals in the Philippines as to: (1) general or special; 
(2) hospital service capabilities; [(3) size or bed capacity] GOVERNMENT OR 
PRIVATE; (4) [class of hospital whether training or not] TRAINING OR NON- 
TRAINING.” 
[“SEC. 17. Fees AND SURCHARGES - Each applicant for a permit to 
construct a hospital shall pay the amount of Five pesos (P5.00) and an annual license 
fee of Ten pesos (P10.00) for each approved license: Provided, That a government 
hospital shall be exempt for the payment of such fees. The amount herein collected 
shall be officially receipted by the licensing agency and shall constitute as a revolving 
fund for the use of the licensing agency.]” 
“SEC. [ 181. 17. 
Penalties - any person, partnership, association who 
establishes, operates, conducts, manages or maintains a hospital or hospital clinic 
within the meaning of this Act without first obtaining a license [as provided for in 
this Act] or violates and provision [hereof] OF THIS ACT OR ITS IMPLEMENTING 
RULES AND REGULATIONS [shall be guilty of misdemeanor, and upon conviction 
thereof] shall be liable to a fine of [not more than five hundred pesos for the first 
offense and not more than one thousand pesos for each subsequent offense,] NOT 
LESS THAN FIVE THOUSAND PESOS (P5,OOO.OO) BUT NOT MORE THAN 
FIFTY THOUSAND PESOS (P50,OOO.OO) FOR THE FIRST OFFENSE, AND NOT 
LESS THAN FIFTY THOUSAND PESOS (P50,OOO.OO) BUT NOT MORE THAN 
ONE “ D R E D  THOUSAND PESOS (P100,OOO.OO) FOR EACH SUBSEQUENT 
OFFENSE, and each day that the hospital shall operate after the first conviction shall 
be considered a subsequent offense.” 
IN ADDITION TO THE PENALTIES SPECIFIED IN THE PRECEDING 
PARAGRAPH, THE BUREAU, WITH THE APPROVAL OF THE SECRETARY, 
MAY SUMMARILY ORDER THE CLOSURE OF ANY HOSPITAL OR HEALTH 
SERVICE ESTABLISHED FOUND OPERATING WITHOUT A LICENSE AS 
PROVIDED FOR IN THIS ACT. 
SEC. 18. REVENUE UTILIZATION - ALL PAYMENTS MADE TO THE 
BUREAU PURSUANT TO SECTION 6 (F) SHALL BE UTILIZED BY THE 
LICENSING AGENCY FOR ITS OPERATION, SUBJECT TO THE RULES AND 
REGULATIONS OF THE DEPARTMENT OF BUDGET AND MANAGEMENT 
AND THE COMMISSION ON AUDIT.’, 
SECTION 2. Repealing Clause. - All laws, presidential decrees, executive orders, 
rules and regulations or parts thereof which are inconsistent with the provision of this Act are 
hereby repealed or modified accordingly. 
SECTION 3. Separability CZause. - If any part, or provision of this Act shall be 
held unconstitutional or invalid, other provision hereof which are not affected hereby shall 
continue to be in full force and effect. 
SECTION 4. Effectivity - This act shall take effect upon its approval. 
Approved,