CONGRESS OF THE PHILIPPINES =
SIXTEENTH CONGRESS
First Regular Session

‘HOUSE OF REPRESENTATIVES
House Bill'No. OF

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

EXPLANATORY NOTE

The Veterans Memorial Medical Center (VMMC) is one of the landmark
institutions dedicated to honor the bravery and nationalism of Filipino soldiers. It is one
of the historical institutions that remind us of the patriotism of our soldiers ready to
fight and defend our sovereignty.

The VMMC as we know it today has a colorful history. The hospital was
constructed by virtue of Public Law 965 signed by then President Harry S. Truman which
appropriated funds for the construction of a veterans hospital in the Philippines. As
Philippine counterpart to the appropriation of US Congress, President Elpidio Quirino
issued Proclamation 169, reserving a parcel of land with an area of 54.9 hectares located
in the District of Diliman, Quezon City, for the Veterans Memorial Hospital (now
VMMC). It was a joint Philippine-American undertaking dedicated to the thousands of
Filipino soldiers who fought with the US Armed forced during the WWII.

It was officially inaugurated on ‘November 20, 1955 by President Ramon
Magsaysay. It is both a historical monument which reflects the vibrancy of Philippine
heritage and culture and a patrimony of our nation that should be conserved and
protected.

The VMIMC has played a key role in history, like no other hospital in the country.
The first President of the Philippine Republic, Emilio Aguinaldo lived out his last few
weeks in one of the hospital suites before he peacefully succumbed to heart failure in
December 1964. Pres. Sergio Osmena and Pres. Carlos P. Garcia both received medical
care in this medical institution. The late Senator Benigno “Ninoy” Aquino, Jr. was


confined in the said hospital due to complications when he initiated a hunger strike
during the Martial Law period while opposing the rule of Pres. Ferdinand £. Marcos.
Pres. Joseph Estrada, and the undersigned stayed and received medical care at the
VMMC. The VMMC played a vital role in giving outstanding health care and the same
quality of medical service to the thousands of veterans and their dependents.

The Veterans Hospital has emerged as one of the leading state hospitals in the
Philippines, equipped with excellent facilities and competent staffing. During the
administration of the undersigned, Pres. George W. Bush initiated a program of
providing SUSD 500,000.00 annually for the hospital. Various medical universities and
colleges became affiliates of the Veterans Hospital. However, the capacity of VMMC to
provide continuing quality service and develop itself into a medical institution of
prestige and excellence is greatly challenged. With the enactment of Republic Act No.
6948, which standardized and upgraded the benefits for military veterans and their
dependents, the medical center's patient clientele has expanded to include retirees of
the Armed Forces of the Philippines and their dependents. As a result, every year, more
patients in need of medical care and hospitalization are treated in VMMC, including
retirees and their dependents.

The mandate of VMMC is to serve our veterans and their dependents, but it may
not be able to carry out this service to the fullest extent because of the severely
financial limitations. The budget it receives is 2 measly 1% of the Department of
National Defense’s (DND) annual budget. It has no other source of income to support
the free care and treatment of the veterans, the retirees and their dependents, except
the very limited number of paying patients admitted on the availability of bed space.

The VMMC is unlike the Philippine Heart Center, Lung Center, Kidney Center,
Philippine General Hospital and Philippine Children’s Medical Center. Although these
centers are government medical institutions, their use and services are not free. They
enjoy autonomous and corporate identity. These medical institutions have their own
charters, yet the Veterans Memorial Medical Center, a tertiary hospital that has served
this country for 53 years and it is staffed by highly qualified and board certified medical
specialists and other paramedical personnel, does not have its own charter.

Given the importance of VMMC’s mandate of serving veterans, military retirees
and their dependents, which no other government medical facility is tasked with, this
bill seeks to strengthen an important historical and medical institution. It isthe objective
of this bill to make VMMC a prime state hospital. It aims to provide the hospital with a
juridical or corporate personality to preserve its viability and existence. This measure
will vest the VMMC with the power to own real and personal properties, and shall have


a governing body that will direct the accomplishment of its mission as defined and
delineated by the charter.

Recognizing the invaluable sacrifices and services of our veterans and military
retirees, it is only imperative that a medical facility dedicated to serve their medical
needs as well as their dependents must provided stability, viability and ample resources
to ensure that they receive quality medical and health services.

In view of the urgency of this bill and the welfare of veterans, military retirees
and their dependents, the passage of this measure is earnestly requested.

GLORIA ban ARROYO DIOSDADO MALAPAGAL ARROYO
Representative, 2nd District, Pampanga Representative, 2" District, Camarines Sur


CONGRESS OF THE PHILIPPINES
‘SIXTEENTH CONGRESS
First Regular Session

HOUSE OF REPRESENTATIVES
House Bill No.. 207

Introduced by Representatives
GLORIA MACAPAGAL ARROYO and DIOSDADO MACAPAGAL ARROYO

AN ACT TO GIVE JURIDICAL PERSONALITY TO THE PRESENT VETERANS
MEMORIAL MEDICAL CENTER (VMMC) AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. - This Act shall be known as “The Veterans Memorial
Medical Center Charter of 2013”.

SEC2. Declaration of Policy. - It is hereby declared the policy of the State to help
foster the socioeconomic security and well-being of the country’s veterans and retired
military personnel in recognition of their patriotic services in times of war and peace for
the cause of freedom and democracy; for the attainment of national unity,
independence and socioeconomic advancement; and for the maintenance of peace and
order in keeping with the goals of the government and the aspirations of the people.

SEC. 3. Veterans Memorial Medical Center (VMMC) as a Corporate Entity. -
There is hereby created a body corporate, for the benefit primarily of the Filipino
veterans, under the name of the Veterans Memorial Medical Center, hereinafter
teferred to. asthe VMMC.

To provide greater flexibility in its operations, the VMMC shall be treated in a
manner consistent with its institutional mission to serve the veterans and shall be
autonomous in the exercise of its jurisdiction.


SEC.4. Purposes and Objectives of the Hospital. - The VMMC shall have the
following objectives:

(2) Construct, establish, operate and maintain a veterans’ hospital primarily for
the veterans’ welfare:

(b) Stimulate and/or undertake scientific researches on the biological,
demographic, social, economic, eugenic, physiological aspects of health
disorders and abnormalities and their control; and gather, compile, present
and publish the findings of such researches for public dissemination;

(c) Facilitate and encourage the dissemination and exchange of ideas and
information on the prevention, treatment and control of diseases; to arouse,
enhance and develop public interest and awareness on general health and
physical fitness;

(d) Encourage and/or undertake the trainings of physicians, nurses, medical
technologists, health officers and social workers on the practical and scientific
conduct and implementation and delivery of health services, and related
activities;

(e) Assist universities, hospitals and research institutions in their studies of health
problems, to encourage advanced training on matters of, or affecting the
physical-and mental well-being of the people;

(f) Encourage the formation of other organizations on the national, provincial,
city, municipal or barangay level and to coordinate their various efforts and
activities for the purpose of achieving a more effective and pragmatic
approach on the common problems relative to the objectives herein
enumerated; and

(g) Extend medical outreach programs to the general public to help prevent,
relieve or alleviate the innumerable afflictions and maladies of the people
especially the poor and the less fortunate in life, without regard to race,
creed, color or political belief.

SECS. Social Responsibility. - The VMMC is primarily committed to serve the
Filipino veterans as defined in Republic Act ‘No. 6948, as amended by Republic Act ‘No.
7696 and Republic Act No. 9396.

SEC.6. Powers. - For-the attainment of the above purposes and objectives, the
VIMMC, as a body corporate, acting through its Board of Trustees, shall have all powers
pertaining to a juridical person, and is therefore authorized to:
(a) Acquire and hold in any manner property of whatever nature or description;
(b) Enter into contracts;


(c) Solicit and receive donations, endowments and funds in the form of
contributions, whether in cash or in kind, from both the public and private
sectors;

(d) Open such accounts in banks and other financial institutions, and to disburse
such funds or invest the same as the Board may direct to accomplish or
advance the purpose or interest of the VMMC;

(e) Invite foreign specialist and other similar experts in the various medical fields
to train the personnel or trainees or residents of the VMMC;

(f) Send the VMMC personnel to research institutes, medical institutes or
universities for medical training or observation and to attend international
and regional conventions, conferences, congresses and seminars, as the
Board may deem necessary, to accomplish the purposes and objectives of the
vc;

(g) Enter into such agreements and arrangements with other medical or other
institutions, domestic or foreign, as may deemed desirable by the Board, for
the purpose of promoting its purposes and objectives;

(h) Adopt a set of bylaws, rules and regulations not inconsistent with the law and
the provision hereof to govern the administration and operation of the affairs
of the VMMC;

(i) Establish branches of the VMMC in other provinces or cities of the Philippines
as may be deemed necessary for greater service coverage to the veterans and
their dependents that are living in almost all parts of the country; and

(i) Perform all such other acts and things as are or may be necessary or
incidental for the accomplishment of the purposes and objectives of the
vMoc.

SEC.7 Board of Trustees. - The VMMC shall be governed by a Board of Trustees,
composed of the following:

(a) Secretary of National Defense as Chairperson;

(b) Medical Director of the VMMC as Vice Chairperson;

(c) Chairperson of the Senate Committee on Defense and Security;

(d) Chairperson of the House Committee on Veterans Affairs and Welfare;

(e) Secretary of Health;

(f) Administrator, Philippine Veterans Affairs Office;

(g) Chairman of the Philippine Veterans Bank;

(h) President of the Veterans Federation of the Philippines; and

(i) Three (3) appointive members who are veterans and who have distinguished
‘themselves in their professions or areas of specialization and have exerted
conspicuous efforts towards the promotion of veterans’ welfare and well-



being. They shall be appointed by the President of the Philippines and shall
serve for a term of three (3) years. In case of vacancy, such vacancy shall be
filled in the same manner as provided for the predecessor, and such
appointee shall hold office for the unexpired term.

SEC.8, Meeting and Quorum. - The Board of Trustees shall convene at least once
a month. The Chairman of the Board may call a special meeting whenever necessary:
Provided, That the members are notified in writing at least three (3) days prior to the
said meeting. A majority of all the members of the Board holding office at the time the
meeting is called shall constitute 2 quorum for Board meetings. In no case shall any and
all members of the Board appoint a representative to act on their behalf.

SEC.9. Medical Director. - The Medical director shall be appointed by the
President of the Philippines upon the recommendation of the Board and shall serve for a
term of six (6) years. The Medical Director shall serve as the Chief Executive Officer of
the VMMC and shall perform the following functions:

(a) Organize the VMMC into a streamlined medical institution with admirable
facilities and competent staffs to ensure quality service;

(b) Appoint members of the professional and administrative staffs and other
employees and personnel of the VMMC through a screening process based
strictly on academic qualifications, experiences and other selection standards;
determine the terms and conditions of their employment, and remove them
for cause in accordance with law and due process;

(c) Determine a position qualifications and compensation plan and adjust salaries
and benefits for all personnel of the VMMC, subject to the Compensation and
Position Classification System of Governance Commission for Government-
Owned and—Controlled Corporations (6OCCs); and

(d) Carry out necessary managerial and administrative functions that may be
deemed necessary or as directed by the Board of Trustees in furtherance of
the objectives of the VMMC set in this Act.

SECO. Secretary. - There shall be a Secretary of the VMMCas appointed of the
Board of Trustees, who shall be the Secretary of the Board and who shall keep such
records of the hospital as may be designated by the Board.

SEC. 11. Hospital Executive Committee. - There shall be an ‘Executive Committee
consisting of the Medical Director as the presiding officer and the Heads of the
‘Administrative, Medical, Surgical, Rehabilitative, Dental, Psychiatric, Diagnostic and
other critical medical departments.


The Committee shall exercise the following functions:

(a) Fix the requirement for admission to the hospital;

(b) Prescribe the rules and regulations as to the discharge of patients;

(c) Adopt internal rules of procedures consistent with the provision of the
Charter in order to promote administrative efficiency in the treatment,
rehabilitation. and discharge of patients of the hospital; and

(d) Carry out administrative and managerial task to assist the Medical Director in
the efficient operations and management of the hospital.

SEC.12. Personnel and Medical Staff. - The VMMC shall have the autonomy to
employ such employees and medical personnel, or otherwise enter such arrangements
with medical specialist and other consultants as its Board of Trustees shall determine.
The personnel and medical staff of the present VMMC shall automatically be transferred
to and absorbed by the VMMC as herein created. The incumbent Medical Director shall
continue to serve as such for a period of three (3) years or until his successor shall have
been appointed by the President of the Philippines.

SEC.13. Assistance from Government Offices. - The VMMC may call upon.any
department, bureau, office, agency or instrumentality of the government, including the
GOCCs, for such assistance as it may need in the pursuit of its purposes and objectives.

All individuals, entities and institutions are hereby enjoined to render full
assistance and cooperation to VMMC in the accomplishment of its objectives and
activities.

SEC.14. Property of the Medical Center. All existing assets of the VMMC
including, but not limited to, the parcel of land belonging to the private domain of the
government situated in the District, Quezon City and more particularly described in the
Bureau of Lands as Lot R.P.-3-B-4-A, BSD-10352, all its buildings and other properties
shall remain with the VMMC as a corporate entity, including those that may hereafter
be given, donated, acquired, transferred or conveyed to the ‘Medical Center or its
branches and instrumentalities by any foreign government, as well as those given by
trust, foundations, corporations or persons (alien or citizen). The absolute ownership of
the Medical Center over these landholdings including those covered by original and
transfer certificates of title in the name of the VMMC is hereby confirmed. Where the
issuance of proper certificates of title is still pending for these landholdings the proper
government office shall expedite issuance thereof within six (6) months from the date of
effectivity of this Act: Provided, That all registration requirements necessary for ‘the
issuance of the said titles have been submitted and complied with.


SEC.15. Land Grants and Other Real Properties. - The use of properties and
proceeds of such properties shall be governed by the following:

(a) The State shall support the VMMC in the sum or lump sum amount, through
general appropriations and other financial benefits, and in kind, through land
grants and donations and use of other real properties. To carry out the intent
of these grants, income derived from the development of all land grants and
real properties shall be used to further the ends of the hospital, as may be
decided by the Board of Trustees in furtherance of the declared hospital
objectives under this Act;

(b) Such parcels of land ceded by law, decree or presidential issuance to the
hospital are hereby declared to be reserved for the purposes intended;

(c) The Board of Trustees shall plan, design and approve and/or cause the
implementation of contracts, mechanisms and financial instruments, such as
joint ventures, long-term leases, fully-owned subsidiaries and securitization to
give the hospital the flexibility to generate revenues and other resources from
land grants and other properties: Provided, That such mechanism and
arrangements shall sustain and protect the environment in accordance with
faw, and be exclusive of the medical core zone of the hospital: Provided,
finally, That such mechanism and arrangements shall not conflict with the
medical or health services and academic mission of the hospital; and

(d) Any plan to generate revenues and other sources from land grants and other
teal properties entrusted to the hospital shall be consistent with the hospital
mission and orientation as a vehicle to extend health services to veterans and
their dependents.

SEC.16. Safeguards on Asset Disposition. - The preservation of the value of the
assets of the hospital shall be of primordial consideration. The-exclusive core zone of the
MMC as defined in Section 14 shall not be sold, transferred, ceded, conveyed, assigned
and-encumbered.

SEC17. Annual Report. - The VMMC shall render to the President of the
Philippines an annual report of its activities and recommendations.

SEC.18. Effect of the Dissolution. - \f, for any reason, the VMMC is dissolved, its
property remaining at the time of such dissolution shall revert to the Republic for
disposition in accordance with law.

SEC.19. Implementing Rules. - The implementing tules and regulations shall be
formulated within ninety (90) days from the approval of this Act.


SEC.20. Separability Clause. - If any provision of this Act is declared
unconstitutional, allthe other provisions not affected shall remain in force and effect.

SEC.21. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations or other issuances or parts thereof contrary to or inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SEC.22. iffectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,