Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3244

Introduced by: HON. “KUYA” JOSE ANTONIO R. SY-ALVARADO

AN ACT
INSTITUTIONALING MALASAKIT CENTERS TO COMPLEMENT THE
IMPLEMENTATION OF REPUBLIC ACT NO. 11223 OTHERWISE KNOWN AS
THE “UNIVERSAL HEALTH CARE ACT" BY REQUIRING PHILHEALTH TO
ESTABLISH, OPERATE AND MAINTAIN MALASAKIT CENTERS IN ALL DOH,
LGU, SUC and DND HOSPITALS IN THE COUNTRY, PROVIDING FUNDS
THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Article XIII Section 11 of the 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 all the people at affordable cost.
There shall be priority for the needs of the underprivileged sick, elderly, disabled, women, and
children. The State shall endeavor to provide free medical care to paupers.”

The policy of the state is clear but in the present status quo, people in our country travel
from one government office to another just to avail financial assistance for their healthcare
needs and medical bills, especially those from poor families. Funds for health and other social
services are available but they need to accomplish lots of paperwork before receiving financial
assistance. The process will not only cost them out-of-pocket expenditures but also time.

In an attempt to establish a way of hastening the delivery of free medical services to
indigent patients, and instilling to Filipino families that health care is not only for the rich, but
a priority for everyone, a program wherein patients are assisted in availing themselves of the
services and financial assistance provided by the Philippine Charity Sweepstakes Office
(PCSO), the Philippine Amusement and Games Corporation (PAGCOR), and the Department
of Social Welfare and Development (DSWD) was devised and launched dubbed as “Malasakit
Center”

The Malasakit Center, a one-stop shop in a public hospital that houses desk
representatives from the Department of Social Welfare and Development (DSWD), Philippine
Health Insurance Corporation (PhilHealth), Philippine Charity Sweepstakes Office (PCSO)
and the Department of Health (DoH), is indeed a revolutionary way to get rid of red tapes.


‘The Malasakit Center program needs to be adopted in all DOH, LGU, DND and SUC
hospitals in the country.

Thus, the approval of this bill is earnestly sought.

“KUYA” JOS ‘ONIO R. SY-ALVARADO}Y
Representative
First District of Bulacan


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 114

Introduced by: “KUYA” JOSE ANTONIO R. SY-ALVARADO-

AN ACT INSTITUTIONALIZING MALASAKIT CENTERS TO COMPLEMENT
THE IMPLEMENTATION OF REPUBLIC ACT NO. 11223 OTHERWISE KNOWN
AS THE “UNIVERSAL HEALTH CARE ACT” BY REQUIRING PHILHEALTH TO
ESTABLISH, OPERATE AND MAINTAIN MALASAKIT CENTERS IN ALL DOH,

LGU, SUC AND DND HOSPITALS IN THE COUNTRY, PROVIDING FUNDS
THEREFOR, 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 “Malasakit Centers Act”

SECTION 2. Declaration of Policies. - it is the declared policy of the State to improve the
delivery of health care services to the people, and to ensure financial assistance for hospital
and medical expenses are available and accessible to the people.

SECTION 3. Definitions of Terms — for purpose of this Act, the following terms shall mean:

(a) DOH Hospital refers to a hospital under the management and administration of the
Department of Health (DOH), including the four (4) corporate hospitals under the
secretary of Health, namely: Philippine Heart Center, Lung Center of the Philippines,
National Kidney and Transplant Institute and the Philippine Children’s Medical Center;

(b) DND Hospital refers to a hospital managed by the Department of National Defense;

(c) Financial Assistance or Material Assistance refers to actual cash or check which covers
burial, transportation, and other allied assistance given by agencies as mandated by
existing laws, rules and regulations to provide such assistance;

(d) Indigent Patient refers to patient who has no visible means of income, or whose income
is insufficient for the subsistence of his/her family, as identified by the Department of
Social Welfare and Development (DSWD), LGU social worker or the medical social
worker of the health facility,

(e) Local Government Unit (LGU) Hospital refers to a hospital managed by the local
government units, usually the provincial government;

(f) Malasakit Center refers to a processing center for Philhealth and one-stop shop for
Filipinos in need of medical assistance;

(g) Medical Assistance refers to assistance for out-of-pocket expenditure in form of
coupon, stub, guaranty letter, promissory note or voucher that has monetary value,
given directly to individual recipients or beneficiaries to address their immediate needs.


(h) Owt-of-pocket expenditure refers to medical and surgical services not currently paid for
or sufficiently reimbursed by Philhealth under republic Act No. 11223 or the Universal
Health Care Act, or other financing sources;

(i) Poor patient refers to those not classified as indigent but are otherwise considered poor
or with financial difficulty to access adequate medical care and/or pay hospital bills
because of certain unavoidable circumstance, such as but not limited to:

1. Senior citizens, person with disability (PWD), orphan, abused women and children
as defined by RA 9262 or the Anti-violence Against Women and Their Children
Act of 2004 and RA 7610 or the Special Protection of Children Against Abuse,
Exploitation and Discrimination Act;

2. Patients with catastrophic illness or any illness as a primary condition that is life or
limb-threatening and requires prolonged hospitalization, extremely expensive
therapies or other special but essential care that would deplete one’s financial
resources, unless covered by special health funding policies;

. Unemployed or without gainful employment;

. Suspected or confirmed victims of torture as defined by Republic Act No. 9745 or
the Anti-Torture Act of 2009;

5. Soldiers and police rendered disabled to be gainfully employed and their dependents

and dependents of soldiers and police killed in action;

Rebel returnees, prisoners of war and their dependents;

Victims of calamities or disaster such as but not limited to typhoons, earthquake,

whose place of residence are officially under a state of emergency or calamity; and

BY

xo

(i) SUC Hospital refers to hospitals managed by State Universities and Colleges.

SECTION 4. Malasakit Center. — To complement the implementation of Republic Act No.

11223, otherwise known as the Universal Health Care Act, there shall be established a
Malasakit Center in each DOH, LGU, DND, and SUC hospital in the country which shall serve
as (a) processing center for all Philhealth concerns regarding coverage, billing, health benefits
packages, patient navigation and referral to the health care provider network, and (b) one-stop
shop medical assistance to cover out-of-pocket medical expenses of indigent and poor patients.

The Philhealth shall administer and manage the Malasakit Centers in close coordination
with the DOH and DSWD. Each Malasakit Center shall consist of duly designated
representatives from the Philhealth, DOH and DSWD with the following delegation of
function:

1. The Phitheath representatives shall be in charge of the overall operation of the
Malasakit Center. He/she shall assist and process the concems of both direct and
indirect contributors to Philhealth regarding the implementation of Republic Act No.
11223, including but not limited to coverage, billing health benefits packages, financial
concerns. The Philhealth representative shall also assist in patient navigation and
referral to the health care provider network;

2. The DOH representative shall be in charge of providing medical assistance to indigent
and poor patients; and

3. The DSWD representative shall be in charge of providing financial or direct assistance
to indigent and poor patients.


SECTION 5. Provision of Medical Assistance — The DOH shall provide medical assistance
to indigent and poor patients through the Malasakit Center which shall be charge from the
annual appropriation of the DOH for assistance to indigent patients

‘The DOH may also augment medical assistance using the following sources:

‘A) Other appropriations earmarked by national government agencies and local government
units purposely for medical assistance to indigent and poor patients: Provided, that
appropriations earmarked for a specific hospital shall only be used for that specific
hospital; and

B) Donations and grants-in-aid: Provided, that donation and grants donated for a specific
hospital shall only be used for that specific hospital: Provided further, that the donations
and grants shall only be used for the purpose specified by the donor.

The DOH shall issue guidelines for the proper implementation of the medical
assistance to indigent and poor patient which shall include order of charging from the
aforementioned sources of financing, availment procedures, transfer and release of
funds, recording and reporting, monitoring and evaluation, partnership with private
hospitals, among others.

The DOH shall make a quarterly report to the Office of the President and
Congress regarding the expenditures or disbursement of the medical assistance to
indigent and poor patients.

SECTION 6. The Medical Assistance shall cover for medical and surgical services not
currently paid for or sufficiently reimbursed by Philhealth in accordance with Republic Act
No. 11223 or other financing sources, and shall be used for the following drugs, medicines,
goods and other services prescribed by the physician of the health facility such as but not
limited to:

a. Laboratory, imaging and all other diagnostic procedures;

. Drugs and medicines included in the Philippine National Drug Formulary (exemptions

to be cleared by Pharmaceutical Division);

Supplies, orthopedic/assistive devices, prosthesis, blood and blood products;

|. Dental services, except those that are for aesthetic purpose and not medically indicated;

All clinical indicated medical and surgical procedures, whether emergency or elective;

Prescribed post-hospitalization rehabilitation services, aftercare program, appropriate

mental and psychological support, including those done on an outpatient basis;

g. In case of non-availability of clinically indicated drugs, medicines, tests, services or
procedures in government health facilities, the concerned government heath facility
may enter into contract with DOH-accredited private health facility to provide the
needed drug, text, service or procedure to the patient, charged against the DOH hospital;

h. All hospital bills including professional fees, provided that the expenses for
professional fees shall not exceed fifty percent (50%) of the approved assistance; and

i. All other medical, health, documentary and related services billed by the hospital.

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Provided, that medical assistance to patients shall be based on need as recommended by
the medical social worker attending physician, approved by the chief of hospital/medical center
chief of the institution involved and DOH authorized officials, subject to availability of funds.


SECTION 7. Provision of Financial Assistance. - The DSWD shall provide financial
assistance through the Malasakit Center to indigent and poor patients, individuals in emergency
situations, under distress or are in need of supplemental financial support due to health or
medical condition, sickness or disease; funeral and burial concerns, which also includes the
most direct and economical transportation expense to or from place of residence or specific
destination.

‘The provision of financial assistance through Malasakit Center shall be charged to the
annual appropriation of the DSWD for assistance to individuals and families in difficult
circumstances, The DSWD shall issue policies and guidelines on the release of such assistance
for the proper implementation of the program.

SECTION 8. Establishment of Malasakit Centers. — The Philhealth and DOH shall, in the
establishment of the Malasakit Centers, undertake consultations with all DOH, LGU, DND,
and SUC hospitals; Provided, that in the establishment of the Malasakit Centers, highest
priority shall be given to those economically-depressed areas or provinces.

Within three (3) years from the effectivity of this Act, the Philhealth and DOH shall
establish Malasakit Center down to the Primary and Secondary Care level to help facilitate the
adoption of appropriate health secking behaviors, assist primary care providers in encouraging
‘medical consultation at the health centers, monitor patient compliance, and ensure proper
patient referral and availment of benefits

Private hospitals are hereby encouraged to establish Malasakit Centers. The Philhealth
and DOH may enter into a Memorandum Centers which shall cater indigent and poor patients
of the private hospital.

SECTION 9. Donation from Non-Government Organizations and the Private Sector. -
The DOH may solicit and receive donations from the private sector for medical assistance to
indigent and poor patients. Such donations shall be exempt from income or donor’s tax and all
other taxes, fees and charges imposed by the government: Provided, that donations from the
private sector for a particular hospital shall only be used for the benefit of the patient of the
particular hospital: Provided further, that the donations and grants shall only be used for the
purpose specified by the donor. As such, the donor may send his or her representatives to the
Malasakit Center for the provision of the medical assistance donated by the donor in the
particular hospital.

Receipts from donations, whether in cash or in kind, shall be accounted for in the books
of the DOH in accordance with accounting and auditing rules and regulations. The receipts
from cash donations and proceeds from sale of donated commodities shall be deposited with
the National Treasury and recorded as a special account in the General Fund and shall be
available to the DOH through a special budget pursuant to Section 35, Chapter 5, Book VI of
Executive Order No.292. Donations with a term not exceeding one (1) year shall be treated as
trust receipts

The DOH shall submit the quarterly reports of all donations received, whether in cash
or in kind, and expenditures or disbursement thereon with electronic signature to the DBM,
through the Unified Reporting System, and to the Speaker of the House of Representatives, the
President of the Senate of the Philippines, the House Committee on Appropriations, the Senate


Committee on Finance and the Commission on Audit, by posting such reports on the DOH
website for a period of three (3) years. The head of the DOH shall send written notice to the
said offices when said reports have been posted on its website which shall be considered the
date of submission.

SECTION 10. Appropriation. ~ The amount necessary to establish Malasakit Centers shall
be included in the General Appropriations Act. Additionally, there shall be an annual
appropriation for the assistance to indigent patients under the DOH specifically for medical
assistance to indigent and poor patients as provided for in Section 5 of this Act, and an annual
appropriation for assistance to individuals and families in difficult circumstances under DSWD
budget for financial assistance to indigent and poor patients as provided for in Section 7 of this
Act.

SECTION 11. Implementing Rules and Regulations. ~ Within ninety (90) days from the
approval of this Act, Philhealth, DOH, DSWD, in coordination with Department of Interior
and local Government shalll jointly issue the implementation rules and regulations of this Act.

SECTION 12. Separability Clause. - Any portion or provision of this Act that is declared
unconstitutional shall not have the effect of nullifying other portions or provisions hereof as
long as such remaining portions can still subsist and be given effect in their entirely.

SECTION 13. Repealing Claw:
parts thereof, which are inconsi

~ All laws, ordinance, rules, regulations, other issuances or
int with this Act, are hereby repealed or modified accordingly

SECTION 14. Effectiyi

.— this Act shall take effect fifteen (15) days after its publication in
the Official Gazette,

‘two (20 newspaper in general circulation

Approved,