I 
, 
FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
557 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Section 15 Article " of the Constitution provides that the State protect and 
promote the right of health of the people and instill health consciousness among 
them. 
As a partner in promoting people's health, the government must provide 
assistance to private hospitals to ensure their viability and high quality service. 
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. 
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 local 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 medical services 
afforded by private hospitals to help build a healthy nation. 
The immediate passage of this bill is therefore requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
I~ r:: '7 
Senate Bill No. 
i) iJ 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
ESTABLISHING 
A PRIVATE HOSPITAL DEVELOPMENT PLAN 
AND 
PROVIDING ASSISTANCE TO PRIVATE HOSPITALS BY GRANTING THEM 
INCENTIVES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. 
Title. -
This Act shall be known as the "Private Hospital 
Assistance Act of 2010". 
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 promulgated 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. 
II. CREATION OF THE PRIVATE HOSPITAL FUND AND BOARD 
SEC 4. Private 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 Private 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 Private Hospital Fund. - The disbursement of the Private 
Hospital Fund shall be subject to audit by the Commission on Audit. 
SEC 7. 
Repealing Clause. -
Any provision of law, rules and regulations 
inconsistent with this Act is hereby repealed or modified accordingly. 
SEC 8. 
Effectivity. -
This Act shall take effect fifteen (15) days from its 
publication in the Official Gazette or in two (2) national newspapers of general 
circulation. 
Approved,