HOUSE OF REPS \TATIVES:

RECEFVED
Republic of the Philippines

HOUSE OF REPRESENTATIVES DAT
Quezon City Tie.
SEVENTEENTH CONGRESS ey:
First Regular Session

REGISTRATION UNIT

HOUSE BILL NO. 893 | purs.ano SERVICE

Introduced by: Hon. Angelina “Helen” D.L. Tan, M.D.

AN ACT STRENGTHENING THE REGULATION OF HEALTH FACILITIES
AND SERVICES IN THE PHILIPPINES, REPEALING FOR THE PURPOSE
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE HOSPITAL
LICENSURE ACT, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

‘A number of health facilities in the country no longer qualify under the existing
regulatory mandate of the Department of Health (DOH) through the Bureau of Health
Facilities and Servic (BHES) because of the emergence and development of their
variety of forms and structures primarily because of a new world order that has opened
up countries to a new level of competition and which has slowly caused the
disappearance of trade borders alongside global development.

‘This has led industries such as those in the field of health facilities maintenance
and health service provision to grow, evolve and expand. As a result, the regulation of
this field should also be enhanced to respond to such changes as it greatly affects the well
being of the people. Hence, this phenomenon has forced the transformation of health
regulations to adapt into the changing times. Health facilities today must be able to
maintain its relevance and expand its scope of authority.

‘This proposed measure introduces a shift from the traditional way of regulation
by regulating the industry as opposed to mere regulation of individual and speeific health
facilities, As such, there shall be fewer opportunities for circumvention and the health
cost becomes controlled. In addition, with this measure, the quality of health facilities
and services shall improve as well as the competitiveness, efficiency and productivity of
the industry.

‘The measure provides for the upgrading of critical technical and infrastructure to
enable the DOH to cope with the challenges of globalization. Thus, aside from
competitiveness, the high quality of health facilities and services are ensured. ‘The
creation of a Health Facilities Regulation Fund, which would be a new and innovative
way of creating and disbursing resources in pursuit of a revitalized regulatory mandate,
will facilitate access, productivity and efficiency.

‘The creation and management of a system of benchmarking system would
definitely improve quality and efficiency in health regulation and ensure accessibility
with respect to necessary health facilities especially to the poor.

‘This measure addresses a pressing issue in the field of health care, which is the
increasing cost of health services. The increasing cost of health care, particularly hospital
care, is a reality recognized by both the government and other stakeholders in the health
sector.

By regulating the costs of health services in health facilities especially through a
strengthened Bureau of Health Facilities and Services, these services will be made more
accessible financially to the population, especially those who belong to the lowest income
group.

‘This bill proposes to strengthen the regulation of health facilities and services by
authorizing the Bureau of Health Facilities and Services (BHFS) of the Department of


Health to establish and prescribe rules, regulations, and standards; inspect and monitor
for continued compliance; implement a classification system; approve building plans and
construction design; provide advise; collect fees; and conduct administrative hearing and
impose penaltie:

It is hoped that this bill would bring about improved mandate and available
financial resources towards efficient and effective health regulation in the country.

In view of the foregoing, the passage of this bill is earnestly sought.

),
Con
ANGELINA “HELEN” D.L. TAN, M.D.
4" District, Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session |,
893

HOUSE BILL NO.

Tntroduced by: Hon, Angelina “Helen” D.L.

AN ACT STRENGTHENING THE REGULATION OF HEALTH FACILITIES
AND SERVICES IN THE PHILIPPINES, REPEALING FOR THE PURPOSE
REPUBLIC ACT NO. 4226, OTHERWISE KNOWN AS THE HOSPITAL
LICENSURE ACT, AND FOR OTHER PURPOSES.

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

SECTION I. Short Title. - This Act shall be known as the "Health Facilities
Regulation Act",

SEC. 2. Definitions. - As used in this Act:
(a) Health facilities refer to institutions and other health-related establishments,

which provide diagnostic, therapeutic, rehabilitative, and/or other health care services
except medical radiation facilities and hospital pharmacies;

(b) License refers to a formal authorization issued by the Department of Health
(DOH) to an individual, partnership, corporation or association to operate a hospital and
other health facilities. It is a prerequisite for accreditation of a hospital and other health
facilities by any accrediting body that is recognized by the DOH; and (c) Licensee refers
to the person, partnership, corporation or association granted a license to operate and
maintain a health facility according to an approved standard set by the Bureau.

SEC. 3. Regulating Agency. - The Bureau of Health Facilities and Services
(BHFS) shall act as the regulatory agency pertaining to the licensing and operation of
health facilities and services in the country.

SEC. 4. Powers and Functior
functions:

. « The BHFS shall have the following powers and

(a) To establish and prescribe rules, regulations, standards and specifications in
all cases related to the issued certificate of license of health facilities and other related
facilities and administer and enforce the same;

(b) To inspect and monitor all health facilities and other related facilities to
ensure their continued compliance with the rules and regulations in accordance with this
Act and to make recommendations to directors or administrators of health facilities for
the correction of deficiencies found during the inspections;

(c) To study and adopt a system of classifying health facilities and other related

facilities in the Philippines;

(a) To approve construction designs and plans for health facilities, government or
private, including renovation or expansion of the same in accordance with the provisions
of this Act;

(e) To provide consultative and advisory services relative to the establishment
and construction of health facilities and other related facilities;

(f) To determine, levy, assess and collect the appropriate permit fee, registration
fee, license fee and surcharges pertinent to the operation of facilities and services except


in cases where charges or rates are established by international bodies or associations of
which the Philippines is a participating member or by bodies recognized by the
Philippine government as the proper arbiter of such charges or rates;

(g) To coordinate and call the assistance of any department, office, agency or
instrumentality of the national or local government and other entities concerned with
any aspect involving health facilities for the effective implementation of this Act;

(h) To maintain a register of health facilities and other related facilities with
licenses indicating the name of the facility, address or location, classification, name of
the director or administrator, ownership, number of authorized beds and such other
pertinent data as may be necessary;

(i) To promulgate and implement the rules and regulations governing the
registration, licensure and operations of health facilities and other related facilities 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 provisions of this Act;

(j) To grant a certificate of license for the operation and maintenance of health
facilities and services, and to suspend or revoke the same in accordance with the
provisions of this Act;

(k) To submit yearly reports to the Secretary of Health, and the Chairpersons of
the Committees on Health of both Houses of Congress; and

(1) Perform such other functions as may be prescribed by law.

SEC. 5. Quasi-Judicial Powers. - To carry out its tasks more effectively, the BHFS
shall be vested with the following quasi-judicial powers:

(a) To investigate, hear and decide administrative cases initiated by the BHES or
filed by any person against a hospital or health service establishment violating any
provision of this Act and its implementing rules and regulations and to impose
appropriate administrative sanctions or penalties provided in this Act;

(b) To promulgate rules governing the conduct of administrative hearings:
Provided, That in such proceedings, the BHES shall not be bound by the technical rules
of evidence of the Rules of Court: Provided, further, That the latter may be applied in a
suppletory manner;

(c) To administer oaths and affirmations, and to issue subpoena duces tecum and
ad testificandum, requiring the production of such books, contracts, correspondence,
records, statement of accounts and other documents and the attendance and testimony
of parties and witnesses, as may be material to the investigation being conducted by the
BHFS;

(d) To exercise contempt powers and impose appropriate penalties;

(c) To cause the prosecution of all cases involving violations of this Act and its
implementing rules and regulations; and

(f) To summarily order the closure of health facilities and other related facilities
operating without a license.

SEC. 6. Registration and License. - All health facilities and other related
facilities, government or private, shall be registered and duly licensed by the BHFS
before such facilities are allowed to operate or be opened to the public.

SEC. 7. Construction Design. - The BIIFS shall review and approve the
construction design and plans of government or private health facilities and other related
facilities to be constructed or which shall undergo renovation or expansion.


An application for the construction design of a health facility or other related
facility shall be submitted to the BHES in a form prescribed by the latter and
accompanied by a plan of the facility proposed to be constructed.

‘The approved construction design and plan issued by the Bureau shall be a
prerequisite 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. Application for Registration and Issuance of License. - An application
suance of a
s operation and maintenance, including that of a facility performing medical
, shall be filed with the BHFS or its deputized office using the form
prescribed by it: Provided, That an applicant for a license to operate and maintain a
hospital pharmacy or a medical radiation facility shall seek the approval of the Food and
Drug Administration (FDA) and the Philippine Nuclear Research Institute (PNRI),
respectively. The application for registration shall be filed and a license shall be issued
upon due compliance of the applicant with the rules and regulations prescribed by the
BHES pursuant to the provisions of this Act.

for registration of a health facility or other related facility and for the
license for it

SEC. 9.Validity and Renewal of License. - ‘The initial license to operate and
maintain a health facility or other related facility shall be valid for a period of two (2)
years from date of issuance, and shall be renewed regularly, subject to the rules and
regulations to be issued by the BHFS.

SEC. 10. Inspection. - The license to operate and maintain a health facility or
other related facility shall be issued by the BHFS only after it has conducted a
comprehensive on-site inspection and has certified that the applicant has satisfactorily
complied with the requisites prescribed in this Act and its implementing rules and
regulations (IRR).

SEC. 11, Suspension and Revocation of License. - The BHFS, after conducting an
administrative hearing, with due notice to the licensee, may suspend or revoke the
license to operate and maintain a health facility or other related facility of any person,
partnership, corporation or association for any of the following grounds:

(a) Violation by the licensee of any provision of this Act or any other existing law;

(b) Violation of rules and regulations prescribed in the implementation of this
‘Act; and

(c) Failure to make necessary corrections or adjustments required by the BHFS in
the improvement or maintenance of facilities and services.

SEC. 12. Appeal. - The orders, rulings or decisions of the BHFS shall be
appealable to the Secretary of Health.

SEC. 19. Separate Licenses Required. - Separate licenses shall be required for
health facilities and other related facilities or branches thereof maintained in separate
premises even though they are operated under the same management: Provided,
however, That separate licenses shall not be required for separate buildings in the same
compound: Provided, further, That the approval of the designs and plans for
construction or renovation of buildings within the same compound shall also be secured
from the BHFS to determine compliance with standards and requirements herein
authorized.

SEC. 14. Nontransferability of License. A license for the operation of a health
facility or other related facility shall not be transferable. The BHES shall be notified of
any change in ownership, change of name of the health facility or other related facility.
‘Transfer of location of the facility shall require an application for a new license.

SEC. 15. Regulation of the Price of Health Care Services. - The President of the
Philippines, upon recommendation of the Secretary of Health, shall have the power to
impose the maximum price over diagnostic, therapeutic, rehabilitative and other health
care services rendered in the facilities. The period of price regulation shall not exceed
one hundred twenty (120) days.



SEC. 16. Penalties. - Any person, partnership, association or corporation who
establishes, operates, conducts, manages or maintains a health facility or other related
facility within the meaning of this Act without first obtaining a license, or violates any
provision of this Act or its IRR shall be liable to a fine of not less than Fifty thousand
pesos (P50,000.00) but not to exceed One hundred thousand pesos (P100,000.00) for
the first offense, not less than One hundred thousand pesos (P100,000.00) but not to
exceed Five hundred thousand pesos (P500,000.00) for the second offense, and not less,
than Five hundred thousand pesos (P500,000.00) but not to exceed One million pesos
(P1,000,000.00) for the third and subsequent offenses. Each day that the health facility
or other related facility operates after the first violation shall be considered a subsequent
offense.

In addition to the penalties specified in the preceding paragraph, the Bureau may
summarily order the closure of any health facility or other related facility found
operating without a license.

SEC. 17. Implementing Rules and Regulations. - The Secretary of Health, upon
the recommendation of the BHPS, shall issue the necessary rules and regulations for its
effective implementation within sixty (60) days upon the effectivity of this Act.

SEC. 18. Separability Clause. - If any part or provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected shall continue
(0 be in full force and effect.

SEC. 19. Repealing Clause. - Republic Act No. 4226, otherwise known as the
Hospital Licensure Act, is hereby repealed. Presidential decrees, executive orders, rules
and regulations and other issuances or parts thereof, which are inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly.

SEC. 20. Bffectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,