EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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S E N A T E
S. No. 
51
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Introduced by Senator Manuel "Lito" M. Lapid
BILLS
IXDEX
AN ACT
PROVIDING A MECHANISM FOR HEALTH PROVIDER'S INCENTIVES 
FOR THE MEDICAL ASSISTANCE ACTUALLY PROVIDED TO THE POOR
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Health is a fundamental human right. It is the obligation of the State to 
institute the necessary enabling mechanisms in order to deliver the appropriate 
health service that is responsive to the needs of all sectors of society. The prime 
duty of the State is to serve and protect the people and provide a health service 
delivery system that protects the rights and welfare not only of the rich but also of 
the poor. As such, it behooves upon the State to ensure that affordable health 
services are constantly and effectively rendered to the underprivileged.
Our 1987 Constitution provides that the State shall adopt an integrated and 
comprehensive approach to health development which shall endeavor to make 
essential goods, health and other social services available to the people at affordable 
costs. It likewise provides that the State shall endeavor to provide free medical care 
to paupers. While the citizens of the State have the right to expect the appropriate 
health service from the States, the economics of health provides that there has to be 
a mechanism to compensate medical practitioners and health providers for the 
medical services actually rendered by said health professionals.
It is the vision of this measure to catalyze the enabling health mechanisms


that will ensure that our citizens, particularly the poor and less privileged 9ector of 
our society are afforded adequate and proper medicai care and attention.
The physician beiongs to a profession with a long and noble tradition directed 
to healing the infirm through a compassionate concern for his feilowmen. In the 
pursuit of their medical profession, the physician's principal objective is the health of 
the patient under his care. Because of the significant importance and responsibility 
that goes with the practice of the medical profession, there is an urgent need to 
institutionalize a mechanism wherein our health providers are compensated for the 
free medical services rendered by them.
Under this proposed measure, a medicai doctor and/or health provider 
rendering actual medical services, as defined by the Department of Heaith (DOH), 
shali be entitled to an allowable tax deduction of up to ten percent (10%) of the 
gross income derived from the actual performance of the medical profession.
In view of the foregoing, early passage of this bill is earnestly reque
UEL LITO M. L
Senator


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EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHIUPPINES ) 
First Regular Session 
)
S E N A T E
S. No. 
51
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Introduced by Senator Manuel "Lito" M. Lapid
AN ACT
PROVIDING A MECHANISM FOR HEALTH PROVIDER'S INCENTIVES 
FOR THE MEDICAL ASSISTANCE ACTUALLY PROVIDED TO THE POOR
AND FOR OTHER PURPOSES
Be if  enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
Section 1. Short Title. - This Act shall be known as the "Free Medical Assistance to 
the Poor Act."
Sec. 2. Declaration o f Policy. - It is the declared policy of the State to value the 
dignity of every person and guarantee the right to health of every individual, particularly 
those who cannot afford the health services of a medical doctor.
As such, the State shall adopt a pro-poor and holistic approach to health 
development which shall endeavor to make essential health services available to the 
people.
Herewith, the State shall endeavor to provide free medical care to the poor and 
the underprivileged sector of our society.
Sec.. 3. Definition o f Terms. —
a) Department - For purposes of this Act, the term Department shall refer to the


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Department of Health (DOH).
b) Health Services - Refers to all services performed, provided, or arranged by the 
medical doctor to promote, improve, conserve, or restore the mental and/or physical well­
being of patient. These medical services include, but are not limited to, the management 
of health services resources; preventive and curative health measures; evacuation of the 
wounded, injured, or sick; selection of the medically fit and disposition of the medically 
unfit; blood management; combat stress control; and medical, dental, laboratory, and 
optometric services.
Sec. 4. Requirements for Availment - For purposes of availing of the benefits and 
services as envisioned in this Act, a medical doctor or health provider shall secure a 
certification from the Department of Health (DOH), or accredited association/organization 
by the DOH that the said medical services to be provided are within the services defined 
by the Department, as provided for in this Act.
For purposes of determining the number of hours actually provided by the medical 
doctor and/or health provider in the provision of medical services, the association and/or 
organization duly accredited by the Department shall issue the necessary certification that 
said medical services were actually undertaken by the health provider.
The certification issued by the DOH shall be submitted to the Bureau of Internal 
Revenue (BIR) for purposes of availing the tax deductions as provided for in this Act.
Sec. 5. Incentives to Medical Doctors and Health Providers. -  For purposes of this 
Act, a medical doctor and/or health provider rendering actual medical services, as defined 
by the Department, shall be entitled to an allowable tax deduction of up to ten percent 
(10%) of the gross income derived from the actual performance of the medical 
profession.
The total tax deduction earned by a registered medical facility shall be allocated
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among its partners in proportion to the respective shares of the latter in the earnings 
thereof.
Sec. 6. Information, Education and Communication (lEC) Campaign. - The 
Department of Health (DOH), in cooperation with the Philippine Information Agency 
(PIA), is hereby mandated to conduct an annual information, education and 
communication 
(lEC) campaign in order to inform the medical doctors of the 
procedures and guidelines in availing tax deductions and inform the general public that a 
free medical assistance mechanism is being provided by the State.
Sec. 7. Oversight Powers o f the Department o f Health. -  The Department of 
Health (DOH) shall have oversight powers as to the implementation of the provisions of 
this Act and the conduct of the medical doctors in the availment of the incentives provided 
for in this Act.
Sec. 8. Reportoriai Requirement - For purposes of determining the effectiveness 
and social impact of the provisions of this Act, the DOH shall submit an Annual Report to 
both Houses of Congress indicating therewith the number of patients who actually 
benefited from this Act.
The report shall state in detail, among others, the geographic location, 
demographic characteristics and socio-economic profile of the beneficiaries of this 
measure.
Sec. 9. Appropriations. — The funds needed for the implementation of this Act 
shall be incorporated in the Annual Appropriation of the Department of Health (DOH).
Sec. 10. Implementing Rules and Regulations (IRR). - Within ninety (90) days from
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the date of effectivity of this Act, the Bureau of Internal Revenue (BIR) shall formulate
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the necessary Revenue Regulations for the proper implementation of the tax component
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as envisioned in this Act.
The DOH shall formulate the necessary implementing rules and regulations with 
respect to the medical services covered under this Act and the process of accreditation 
of organizations and/or associations which will provide free medical assistance.
Sec. 11. Separability Clause. - If any provision of this Act is declared 
unconstitutional or invalid, the other provisions not affected by such declaration, shall 
remain in full force and effect.
Sec. 12. Repealing Clause. — Any law, decree, ordinance, administrative circulars 
not consistent with any provision of this Act is hereby amended, repealed or modified 
accordingly.
Sec. 13. Effectivity Clause. - This act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in two (2) newspapers of general 
circulation.
Approved,