Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 10812 
Introduced by Representative Michael L. Romero 
 EXPLANATORY NOTE 
The 1987 Constitution mandates the state to establish sufficient hospital 
infrastructures and healthcare facilities through appropriate technology and 
research, with adequate financial, equipment and other support services. 
The Philippine Children’s Medical Center (PCMC) is a government-owned and 
controlled corporate National Center for Specialized Health Care under the 
Department of Health. It is a 200-bed capacity tertiary hospital with a mandate 
to provide pediatric care, offer training programs for medical and allied health 
care providers, and be a center in clinical research. 
Article Il, Section 15 of the 1987 Constitution provides that the state 
shall protect the rights of the people and instill health consciousness among 
all. Furthermore, it is State policy to ensure that communities have access to 
quality and accessible healthcare. Clearly, health service is among the most 
essential basic services that are urgently and frequently needed by all. 
1979, was the International Year of the Child, inspired by the concept and the 
impetus to provide children a tertiary institution for expert health care. By 
August 10, 1979, P.D. 1631 created the hospital known as Lungsod ng 
Kabataan. This was inaugurated on April 29, 1980, under then the Minister of 
Human Settlements, First Lady Imelda R. Marcos, the hospital first opened its 
August 27, 2024
8:00 am


doors to commence delivering expert healthcare to children. Lungsod ng 
Kabataan is described as a “Wonderland for Children”.. This aims to make the 
child’s hospital stay a soothing and comfortable experience, as well as 
informative, educational and enjoyable. The decorative rooms also distract 
children from their ills and pain, making their environment conducive to healing. 
This House Bill seeks to provide Modernization Funding to the PCMC to ensure 
that the, shall be the leader in upholding the highest standards of pediatric 
care, a self-reliant institution responsive to the health needs of the Filipino 
people. 
Thus, the early passage of this bill is earnestly requested. 
MICHAEL L. ROMERO 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
Third Regular Session 
HOUSE BILL NO. 10812 
Introduced by Representative Michael L. Romero 
AN ACT 
PROVIDING FOR THE MODERNIZATION OF THE PHILIPPINE 
CHILDRENS MEDICAL CENTER (PCMC), INCREASING AND 
REORGANIZING ITS ADMINISTRATION, STRENGTHENING THE 
PEDIATRIC AND TERTIARY CARE FACILITIES, ENHANCED BY 
EDUCATION AND RESEARCH, ACCESSIBLE TO ALL AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
DECLARATION OF POLICY – It shall hereby be a 
declared policy of the State to foster the PCMC as the leader in upholding the 
highest standards of special training and research hospital mandated to render 
a comprehensive healthcare, a self-reliant institution responsive to the health 
needs of the Filipino people: 
. 
The state shall continually improve the effectiveness of our Quality 
Management System towards equitable development for improved quality of life 
for all. 


The state shall formulate policies for the efficient and effective administration 
and management of all manpower, skills and competencies to ensure 
compliance. 
Article Il, Section 15 of the 1987 Constitution provides that the state 
shall protect the rights of the people and instill health consciousness among 
all.  
Likewise, it is state policy to ensure that communities have access to 
quality and accessible healthcare. Clearly, health service is among the most 
essential basic services that are urgently and frequently needed by all. 
 
SECTION 2. 
The PCMC is the premier Pediatric Center of the country, 
the Child Neuroscience Department, the Center for Developmental Intervention, 
Perinatology Department and Research Department were likewise created. With 
its goal of strengthening the tertiary care facilities of the institution, Pediatric 
Dentistry, and Child Psychiatry were formed in 1989.  
Throughout the 1990s, PCMC continued with its tasks of setting standards of 
excellence in service, training, and research.  
Various innovative activities under the Committee of Primary Preventive and 
Promotive Programs were organized.  
Institutional highlights during the turn of the century introduced new Fellowship 
Training Programs such as Pediatric Radiology and Pediatric Gynecology. 
 
Testament to its enduring commitment to quality in all aspects of patient care, 
PCMC was awarded the Salamin ng Bayan Award in 1992 and 1994, Buhay 
Award in 1995, National Public Service Award in 1997, and the Three Star 
Excellence Award in 1998, Quezon City Most Outstanding Organization in 2012, 


and the most recent achievement that it received in 2013 is the ISO Certification 
in Pediatric Specialized Healthcare Services and Pediatric Dental, Diagnostics and 
Laboratory Services. 
SECTION 
3. 
MODERNIZATION FUNDING. – The amount of Two 
Billion Pesos (Php2,000,000,000.00) for the operation and administration of 
the (NCMH) shall be chargeable against funds for the purpose and other sources 
recommended by the Department of Budget and Management (DBM). 
Thereafter, appropriations for the (PCMC) shall be included in the budget 
proposals under the Department of Health (DOH). 
 
The Department of Health (DOH) shall rationalize the existing organizational 
structure and staffing pattern of the PCMC in accordance with the provisions of 
this Act and relevant compensation and position classification laws, rules and 
regulations. 
Thereafter, the amount needed for the continued implementation of the 
modernization program, shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
4. 
PHILIPPINE CHILDRENS MEDICAL CENTER (PCMC) 
MODERNIZATION FUND – There is hereby created the (PCMC) Modernization 
Fund to be used exclusively for the (PCMC) Modernization Program. 
The (PHC) Modernization Fund shall be administered by the Medical Director of 
the PHC in accordance with existing government budgeting, accounting and 
auditing rules and regulations. 
SECTION 
5. 
PROGRESS REPORT – The PCMC shall prepare an 
annual report on the status of the implementation of the (PCMC) Modernization 
Programs which shall be submitted, to the Office of the President and to the 


Chairpersons of the Committee on Health of the Senate and the House of 
Representatives. 
SECTION 
6. 
PERIOD OF IMPLEMENTATION – The modernization 
program under this Act shall be implemented for a period of three (3) years:  
Provided, that payments for multi-year contract obligations incurred 
under this Act may extend beyond this period:  
Provided, further, That the (PCMC) shall continue to develop, modernize 
and constantly update its operational capabilities to keep pace with best global 
practices. The amount necessary for the initial implementation to fund this act 
shall be charged under the Department of Health (DOH).  
Thereafter, appropriations for the (PCMC), shall be included in the budget 
proposals under the annual General Appropriations Act (GAA) 
 
The Department of Budget and Management (DBM) shall rationalize the existing 
organizational structure and staffing pattern of the (PCMC) in accordance with 
the prevailing provisions and relevant compensation and position classification 
laws, rules and regulations. 
Thereafter, the amount needed for the continued implementation of the 
modernization program shall be included in the annual General Appropriations 
Act (GAA). 
SECTION 
7. 
MODERNIZATION FUND – There is hereby created the 
NCMH) Modernization Fund to be used exclusively for the (PCMC) 
Modernization Program. 
The (PCMC) Modernization Fund shall be administered by the Medical Director 
of the PCMC in accordance with existing government budgeting, accounting, and 
auditing rules and regulations. 


SECTION 
8. 
PROGRESS REPORT – The Medical Director of the 
(PCMC) shall prepare an annual report on the status of the implementation of 
the Modernization Programs which shall be submitted, to the Office of the 
President. 
 
SECTION 
9. 
SUPERVISING AND ASSESSMENT CONCERNS. — the 
Department of Health (DOH), shall provide the necessary technical and 
financial assistance to ensure effective operations and build-up. 
 
SECTION 
10. 
IMPLEMENTING AGENCY. — The Department of 
Health (DOH). 
 
SECTION 
11. 
IMPLEMENTING RULES AND REGULATIONS. — 
Within ninety (90) days from the effectivity of this Act, the PCMC, shall, in 
consultation with DBM and DOH, and other concerned government and private 
agencies, promulgate the necessary rules and regulations to carry out the 
provisions of this Act. 
 
SECTION 
12. 
INCREASE OF PERSONNEL. – The PCMC shall 
maintain the sufficient staffing pattern. Hence, it is authorized to increase its 
manpower to meet such required and may continue to increase personnel per 
percentage rate increase of committed mandates annually or as the need arises. 
SECTION 13.  
GOVERNMENT CONTRIBUTIONS. The Government 
shall contribute the necessary land, building, equipment and facilities, to the 
NCMH, and shall pay such obligations for real, personal and mixed properties 


arising from such undertaking under a deferred payment arrangement within 
three (3) years, at a preferred rate of interest. 
 
SECTION 14.  
PROPERTY OF THE CENTER. The property of the 
NCMH shall consist of such real, personal, mixed, and other type of property, 
now owned or reserved for, or may hereafter be given, donated, acquired, 
transferred or conveyed to, the PCMC by the Philippine Government, its 
branches and instrumentalities, any foreign government, as well as by trust, 
foundations, corporations, or persons, alien or domestic, in order to carry out its 
purposes and objectives as set forth herein. 
 
SECTION 15.  
TAX EXEMPTIONS, ETC. - 
All of the donations, 
contributions or endowments which may be made by entities or persons to the 
Philippine Heart Center shall be exempt from income and gift taxes, and the 
same shall be further deductible in full for purposes of computing the maximum 
amount deductible under the National Internal Revenue Code, as amended. 
 
The NCMH shall be exempt from the payment of all taxes, charges and fees 
imposed by the Government or any political subdivision or instrumentality 
thereof for a period of five (5) years. 
All income earned by foreign doctors who shall use the facilities of the PCMC 
shall be tax exempt for a period of ten years from the date of issuance hereof. 
Any provision of law to the contrary notwithstanding, any donation, 
contribution, bequest, subsidy or financial aid which may be made to the 
Institute shall be exempt from taxes of any kind and shall constitute allowable 
deductions in full of the income of the donors or grantors for income tax 
purposes. 
 


SECTION 16.  
ASSISTANCE 
FROM 
GOVERNMENT 
OFFICES, 
ETC. The PCMC may call upon any department, bureau, office, agency or 
instrumentality of the Government, including government-owned or controlled 
corporations, for such assistance as it may need in the pursuit of powers and 
functions. 
 
All individuals, entities and institutions are hereby enjoined to render full 
assistance and cooperation to the PCMC in the accomplishment of its objectives 
and activities. 
SECTION 17.  
GOVERNMENT 
SUPPORT - 
The 
amount 
of 
(Php500,000,000.00) is hereby appropriated as contribution of the National 
Government for the initial modernization of the PCMC. On the year of the 
approval of this act. 
 
Thereafter, the necessary amount to support the continued modernization 
of the NCMH shall be appropriated and released, subject to the approval of the 
President of the Philippines. 
SECTION 
18. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 
SECTION 
19.  AUDITING PROVISION - The books and accounts of 
the NCMH shall be subject to periodic auditing by the Chairman of the 
Commission on Audit, or his duly authorized representative. 
SECTION 
20. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 


SECTION 
21. 
TRANSPARENCY - Government information is a pearl, 
meant to be shared with the public in order to maximize its inherent value. 
the PCMC hopes to inspire Filipinos in the civil service to be more open to citizen 
engagement; on the other, to invite the Filipino citizenry to exercise their right to 
participate in governance. This initiative is envisioned as a step in the right 
direction towards solidifying the position of the PCMC – a shining democratic 
virtue in the region. 
SECTION 22.   
POWERS AND FUNCTIONS - For the attainment 
and/or furtherance of the above purposes and objectives, the PCMC as a 
corporate body, acting through its Board of Trustees shall have all the powers 
and functions pertaining to a juridical person, and is therefore authorized, to 
conduct authority among other things: 
(a) To acquire and hold in any manner property of whatever 
nature or description,  
(b) to dispose of such property under any mode of encumbrance 
or conveyance; 
(c) including the construction and operation of satellite branches. 
SECTION 
23. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
24. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
25. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 


Approved,