Republic Act 4226 - Hospital
Licensure Act corporation, religious organizations, firms,
Fifth Congress of the
REPUBLIC OF THE PHILIPPINES
Begun and held in the City of Manila on
Monday, the twenty fifth day of January,
nineteen hundred and sixty five.
AN ACT REQUIRING THE LICENSURE
OF ALL HOSPITALS IN THE
PHILIPPINES AND AUTHORIZING THE
BUREAU OF MEDICAL SERVICES TO
SERVE AS THE LICENSING AGENCY
Be it enacted by the Senate and House of
Representatives of the Philippines in
Congress assembled:
Section 1 - This act shall also be known
as the Hospital Licensure Act.
Section 2 - Definitions -
(a) "Hospital" - means a place devoted
primarily to the maintenance and
operation of facilities for the diagnosis,
treatment and care of individuals suffering
from illness, disease, injury or deformity or
in need of obstetrical or other medical and
nursing care. The term "hospital" shall
also be construed as any institution,
building or place where there are installed
beds or cribs or bassinets for twenty-four
hour use or longer by patients in the
treatment of diseases, diseased-condition,
injuries, deformities or abnormal physical
and mental states, maternity cases, and
sanitorial or sanitarial care infirmities,
nurseries, dispensaries, and such other
means by which they maybe designated.
1. "Government Hospital" is a hospital
operated and maintained either partially
or wholly by the national, provincial,
municipal or city government or other
political subdivision, or by any
department, division, board or other
agency thereof.
2. "Private Hospital" is one which is
privately owned, established and operated
with funds raised or contributed through
donations, or by private capital or other
means, by private individuals, association,
company or joint stock association.
3. "Clinic" means a place in which patients
avail of medical consultations or
treatments on an out-patient basis.
However, any clinic or dispensary where
there is at least six (6) beds or cribs or
bassinets installed for twenty-four hour
use by patients shall be construed to fall
within the definition of a hospital as
described in this Act.
4. "Licensee" is a person, or persons
granted a licensee to operate and
maintain a hospital according to an
approved minimum standard.
Section 3 - Construction Permit - No
hospital, government or private shall be
constructed unless plans have been
approved and construction permit issued
by the licensing agency as defined in this
Act.
Section 4 - Registration and License - No
hospital shall operate or be opened to the
public unless it has been registered and a
license for its operation obtained from this
licensing agency provided in this Act.
Section 5 - Licensing Agency - For
purposes of setting standards in hospital
construction and operation, the Bureau of
Medical Services, in addition to its present
duties, shall act as the licensing agency.
The Secretary of Health shall reorganize
this Bureau to include a stall of hospital
architects, hospitals administrator's,
sanitary engineers and such personnel as
may be necessary to carry out the
purposes of this Act without necessarily
increasing the present personnel strength
of this Bureau.
Section 6 - Powers and Duties of the
Licensing Agency - The Bureau of Medical
Services, or the licensing agency shall
have the following powers and duties:
1. To conduct an ocular survey of all
existing hospitals in the Philippines,
government and private, with a view to
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determine their fitness to operate
considering their facilities and physical
plant.
2. To describe standard plans for
government hospital plants in consultation
with the Division of Architecture, Bureau
of Public Works
3. To approved plans for hospital plants,
government or private and to issue
permits or authority to construct hospitals
in accordance with provision of this Act.
4. To keep a permanent register of
approved hospitals or those issued
licenses to operate indicating the name of
the hospital, address or location, type of
hospital, name of the director or
administrator, ownership, number of
authorized beds and bassinets and such
other pertinent data as may be necessary.
5. To grant licenses for the operation and
maintenance of hospitals or revoke the
same in accordance with the provision of
this Act.
6. To make periodic inspection of all
hospitals as to check compliance with
rules and regulations legally promulgated
or with the provisions of this Act and to
make recommendations to directors or
administrators of hospitals for the
correction of defects found during such
inspection.
7. To publish yearly, a list of all approved
hospitals indicating the name, location,
type, authorized beds, and name of the
Director or Administrator.
8. To submit yearly report to the Secretary
of Health, the Speaker of the House of
Representatives, the President of the
Senate and Chairman and Members of the
committee on Health of both Houses of
congress, such report to include a list of
approved hospitals indicating the name of
the hospitals, location, bed capacity and
the name of the director or administrator
and make recommendations on hospital
needs or requirements for hospital service
in certain communities that do not enjoy
such hospital services.
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Section 7 - Filing of Application for
Construction Permit - Application for a
Permit to Construct a hospital shall be
submitted to the Office of the Director,
Bureau of Medical Services in a form
prescribed by the latter and accompanied
by a plan of the hospital plant proposed to
be constructed. The application shall state
the name of the hospital, ownership,
number of beds proposed to be operated,
location and type of the hospital to be
constructed.
Section 8 - Minimum Standards and
Construction - In order that a permit to
construct a hospital can be issued, the
hospital plan shall provide sufficient bed
space for the hospital bed capacity
proposed, a laboratory room, and
operating room, including work rooms for
sterilization, anesthesia preparation, etc.
an x-ray or radiology room, pharmacy,
dispensary or out-patient department,
delivery room, isolation room, autopsy
room or morgue, sufficient quarters for
residents, nurses, attendants and helpers
and sufficient number of toilet facilities.
Wards shall be constructed such that
segregation of the type of sexes is
observed and as far as practicable as to
the type of cases to be confined.
Section 9 - Application for Registration
and Issuance of License - Application for
registration of a hospital and for the
issuance of a license for its operation and
maintenance shall be filed with the Bureau
of Medical Services on a form prescribed
by it. Registration may be made and
license issued upon compliance with the
provisions of section eight hereof and the
rules and regulations prescribed by the
licensing agency pursuant to the provision
of this Act.
Section 10 - Inspection - Permit to
construct a hospital or a major portion
thereof and license to operate and
maintain the same shall be issued by the
licensing agency only after a License for the operation of hospitals shall
representatives of the licensing agency
has conducted an ocular inspection and
verified that the applicant has
satisfactorily complied with the requisites
prescribed in this Act. The license to
operate and maintain a hospital shall be
renewed every year upon payment of the
prescribed fees.
Section 11 - Revocation of License - The
licensing agency may suspend or revoke a
license already issued for any of the
following grounds: a) repeated violation by
the existing law; b) repeated failure to
make necessary correction or adjustments
required by the licensing agency in the
improvement of facilities and services.
Section 12 - Hearing - Any person,
association, corporation, or any other
private entity who has been refused a
license to operate and maintain a hospital
or those license for such has been
suspended or revoked shall be entitled to
administrative hearing to be conducted by
the Secretary of Health and his two
Undersecretaries to determine justifiability
of such denial, suspension, or revocation
of the license. Provided, that the licensee
may resort to the court, as in other cases
provided by law.
Section 13 - Separate License Required -
Separate licenses shall be required for
hospital 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 premises for
construction or alteration of building
within the same compound shall also be
secured from the licensing agency to
determine compliance with standards and
requirements herein authorized.
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Section 14 - License not Transferable -
not be transferable. The licensing agency
shall be notified of any change in
ownership, change in name of hospital,
and transfer of location and in the latter
case, an application for new license should
be submitted.
Section 15 - Rules and Regulations - The
Bureau of Medical Services acting as a
licensing agency and subject to the
approval of the Secretary of Health, shall
promulgate rules and regulations to
implement the provisions of this Act.
Section 16 - Classification of Hospitals -
The licensing agency shall study and
adopt a system of classifying hospitals in
the Philippines as to 1) general or special;
2) hospital service capabilities; 3) size or
bed capacity and 4) class of hospital
whether training or not.
Section 17 - Fees - Each applicant for a
permit to construct a hospital shall pay
the amount of five pesos as permit fee. A
registration fee of five pesos and an
annual license fee of ten pesos shall
likewise be collected for each hospital and
for such approved license; provided that a
government hospital shall be exempt from
the payment of such fees. The amount
herein collected shall be officially
receipted by the licensing agency and
shall constitute as a revolving fund for the
use of the licensing agency.
Section 18 - Penalties - Any person,
partnership, association or corporation
who establishes, operates, conducts,
manages or maintains a hospital or clinic
within the meaning of this Act without first
obtaining a license as provided for in this
Act or violates any provision hereof shall
be liable to fine of not more than five
hundred pesos for the first offense, and
each day that the hospital shall operate
after the first conviction shall be
considered a subsequent offense.
Section 19 - Repeal - any law or laws or
parts thereof inconsistent with the
provisions of this Act are hereby repealed.
Section 20 - Effectivity - This Act shall
take effect upon its approval.
APPROVED:
FERDINAND E. MARCOS CORNELIO T.
VILLAREAL
President of the Senate Speaker of the
House of Representatives
Finally passes by the Senate This Act,
which originated in
On April 21, 1965 House
Representatives, was
Finally passed by the same on May 21,
1964
REGINO E. EUSTAQUIO INOCENCIO B.
PAREJA
Secretary of the Senate Secretary of the
House of Representatives
Approved: June 19, 1965 DIOSDADO
MACAPAGAL
President of
the Philippines
FOREIGN INVESTMENTS ACT OF 1991
[Republic Act No. 7042]
AN ACT TO PROMOTE FOREIGN
INVESTMENTS,
PRESCRIBE THE PROCEDURES FOR
REGISTERING ENTERPRISES
DOING BUSINESS IN THE PHILIPPINES
AND FOR OTHER PURPOSES
SECTION 1. Title. - This Act shall be known
as the "Foreign Investments Act of 1991."
SEC. 2. Declaration of Policy. - It is the
policy of the State to attract, promote and
welcome productive investments from
foreign individuals , partnerships,
corporations, and governments, including
the their political subdivisions, in activities
of which significantly contribute to national
industrialization and socio-economic
development to the extent that foreign
investment is allowed in such activity by
the Constitution and relevant laws.
Foreign investments shall be encouraged
in the enterprises that significantly expand
livelihood and employment opportunities
for Filipinos; enhance economic value of
farm products; promote the welfare of
Filipino consumers; expand the scope,
quality and volume of exports and their
access to foreign markets; and/or transfer
relevant technologies in agriculture,
industry and support services. Foreign
investments shall be welcome as a
supplement to Filipino capital and
technology in those enterprises serving
mainly the domestic market.
As a general rule, there are no restrictions
on extent of foreign ownership of export
enterprises. In domestic market
enterprises, foreigners can invest as much
as one hundred percent [100%] equity
except in areas included in the negative
list. Foreign-owned firms catering mainly
to the domestic market shall be
encouraged to undertake measures that
will gradually increase Filipino
participation in their businesses by taking
in Filipino partners, electing Filipinos to
the board of directors, implementing
transfer of technology to Filipinos,
generating more employment for the
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economy and enhancing skills of Filipino
workers.
SEC. 3. Definitions. - As used in this Act:
a. The term "Philippine national" shall
mean a citizen of the Philippines; of a
domestic partnership or association wholly
owned by citizens of the Philippines; or a
corporation organized under the laws of
the Philippines of which at least sixty
percent (60%) of the capital stock
outstanding and entitled to vote is owned
and held by citizens of the Philippines; or a
corporation organized abroad and
registered as doing business in the
Philippines under the Corporation Code of
which one hundred percent (100%) of the
capital stock outstanding and entitled to
vote is wholly owned by Filipinos or a
trustee of funds for pension or other
employee retirement or separation
benefits, where the trustee is a Philippine
national and at least sixty percent (60%)
of the fund will accrue to the benefit of
Philippine nationals: Provided, That where
a corporation and its non-Filipino
stockholders own stocks in a Securities
and Exchange Commission (SEC)
registered enterprise, at least sixty
percent (60%) of the capital stock
outstanding and entitled to vote of each of
both corporations must be owned and held
by citizens of the Philippines and at least
sixty percent (60%) of the members of the
Board of Directors of each of both
corporations must be citizens of the
Philippines, in order that the corporation,
shall be considered a "Philippine national."
[as amended by Republic Act No. 8179]
b. The term "investment" shall mean
equity participation in any enterprise
organized or existing under the laws of the
Philippines;
c. The term "foreign investment" shall
mean an equity investment made by non-
Philippine national in the form of foreign
exchange and/or other assets actually
transferred to the Philippines and duly
registered with the Central Bank which
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shall assess and appraise the value of
such assets other than foreign exchange;
d. The phrase "doing business" shall
include soliciting orders, service contracts,
opening offices, whether called "liaison"
offices or branches; appointing
representatives or distributors domiciled
in the Philippines or who in any calendar
year stay in the country for a period or
periods totaling one hundred eighty [180]
days or more; participating in the
management, supervision or control of
any domestic business, firm, entity or
corporation in the Philippines; and any
other act or acts that imply a continuity of
commercial dealings or arrangements and
contemplate to that extent the
performance of acts or works, or the
exercise of some of the functions normally
incident to, and in progressive prosecution
of commercial gain or of the purpose and
object of the business organization:
Provided, however, That the phrase "doing
business" shall not be deemed to include
mere investment as a shareholder by a
foreign entity in domestic corporations
duly registered to do business, and/or the
exercise of rights as such investor; nor
having a nominee director or officer to
represent its interests in such corporation;
nor appointing a representative or
distributor domiciled in the Philippines
which transacts business in its own name
and for its own account;
e. The term "export enterprise" shall
mean an enterprise wherein a
manufacturer, processor or service
[including tourism] enterprise exports
sixty percent (60%) or more of its output,
or wherein a trader purchases products
domestically and exports sixty per cent
(60%) or more of such purchases;
the term "domestic market enterprise"
shall mean an enterprise which produces
goods for sale, or renders services to the
domestic market entirely or if exporting a
portion of its output fails to consistency
export at least sixty percent (60%)
thereof; and
f. The term "Foreign Investments
Negative List" or "Negative List" shall
mean a list of areas of economic activity
whose foreign ownership is limited to a
maximum of forty percent (40%) of the
equity capital of the enterprises engaged
therein.
SEC. 4. Scope. - This Act shall not apply to
banking and other financial institutions
which are governed and regulated by the
General Banking Act and other laws under
the supervision of the Central Bank.
SEC. 5. Registration of Investments of
Non-Philippine Nationals. - Without need of
prior approval, a non-Philippine national,
as that term is defined in Section 3 [a],
and not otherwise disqualified by law may,
upon registration with the Securities and
Exchange Commission [SEC], or with the
Bureau of Trade Regulation and Consumer
Protection [BTRCP] of the Department of
Trade and Industry in the case of single
proprietorships, do business as defined in
Section 3 [d] of this Act or invest in a
domestic enterprise up to one hundred
percent (100%) of its capital, unless
participation of non-Philippine nationals in
the enterprise is prohibited or limited to a
smaller percentage by existing law and/or
under the provisions of this Act. The SEC
or BTRCP, as the case may be, shall not
impose any limitations on the extent of
foreign ownership in an enterprise
additional to those provided in this Act:
Provided, however, That any enterprise
seeking to avail of incentives under the
Omnibus Investment Code of 1987 must
apply for registration with the Board of
Investments [BOI], which shall process
such application for registration in
accordance with the criteria for evaluation
prescribed in said Code: Provided, finally,
That a non-Philippine national intending to
engage in the same line of business as an
existing joint venture, in which he or his
majority shareholder is a substantial
6
partner, must disclose the fact and the
names and addresses of the partners in
the existing joint venture in his application
for registration with the SEC. During the
transitory period as provided in Section 15
hereof, SEC shall disallow registration of
the applying non-Philippine national if the
existing joint venture enterprise,
particularly the Filipino partners therein,
can reasonably prove they are capable to
make the investment needed for the
domestic market activities to be
undertaken by the competing applicant.
Upon effectivity of this Act, SEC shall
effect registration of any enterprise
applying under this Act within fifteen [15]
days upon submission of completed
requirements.
SEC. 6. Foreign Investments in Export
Enterprises. - Foreign investment in export
enterprises whose products and services
do not fall within Lists A and B of the
Foreign Investment Negative List provided
under Section 8 hereof is allowed up to
one hundred percent [100%] ownership.
Export enterprises which are non-
Philippine nationals shall register with BOI
and submit the reports that may be
required to ensure continuing compliance
of the export enterprise with its export
requirement. BOI shall advise SEC or
BTRCP, as the case may be, of any export
enterprise that fails to meet the export
ratio requirement. The SEC or BTRCP shall
thereupon order the non-complying export
enterprise to reduce its sales to the
domestic market to not more than forty
percent [40%] of its total production;
failure to comply with such SEC or BTRCP
order, without justifiable reason, shall
subject the enterprise to cancellation of
SEC or BTRCP registration, and/or the
penalties provided in Section 14 hereof.
SEC. 7. Foreign Investments in Domestic
Market Enterprises. - Non-Philippine
nationals may own up to one hundred
percent [100%] of domestic market
enterprises unless foreign ownership
therein is prohibited or limited by the
Constitution and existing law or the
Foreign Investment Negative List under
Section 8 hereof. [as amended by
Republic Act No. 8179]
SEC. 8. List of Investment Areas Reserved
to Philippine Nationals [Foreign
Investment Negative List]. - The Foreign
Investment Negative List shall have two
[2] component lists: A and B:
a. List A shall enumerate the areas of
activities reserved to Philippine nationals
by mandate of the Constitution and
specific laws.
b. List B shall contain the areas of
activities and enterprises regulated
pursuant to law:
1. which are defense-related activities,
requiring prior clearance and authorization
from the Department of National Defense
[DND] to engage in such activity, such as
the manufacture, repair, storage and/or
distribution of firearms, ammunition, lethal
weapons, military ordnance, explosives,
pyrotechnics and similar materials; unless
such manufacturing or repair activity is
specifically authorized, with a substantial
export component, to a non-Philippine
national by the Secretary of National
Defense; or
2. which have implications on public
health and morals, such as the
manufacture and distribution of dangerous
drugs; all forms of gambling; nightclubs,
bars, beer houses, dance halls, sauna and
steam bathhouses and massage clinics.
Small and medium-sized domestic market
enterprises with paid-in equity capital less
than the equivalent of Two hundred
thousand US dollars [US$200,000.00], are
reserved to Philippine nationals: Provided,
That if: [1] they involve advanced
technology as determined by the
Department of Science and Technology; or
[2] they employ at least fifty [50] direct
employees, then a minimum paid-in
capital of One hundred thousand US
7
dollars [US$100,000.00] shall be allowed
to non-Philippine nationals.
Amendments to List B may be made upon
recommendation of the Secretary of
National Defense or the Secretary of
Health, or the Secretary of Education,
Culture and Sports, endorsed by NEDA,
approved by the President, and
promulgated by a Presidential
Proclamation.
The Transitory Foreign Investment
Negative List established in Section 15
hereof shall be replaced at the end of the
transitory period by the first Regular
Negative List to be formulated and
recommended by NEDA, following the
process and criteria provided in Sections 8
and 9 of this Act. The first Regular
Negative Lists shall be published not later
than sixty [60] days before the end of the
transitory period provided in said section,
and shall become immediately effective at
the end of the transitory period.
Subsequent Foreign Investment Negative
Lists shall become effective fifteen [15]
days after publication in a newspaper of
general circulation in the Philippines:
Provided, however, That each Foreign
Investment Negative List shall be
prospective in operation and shall in no
way affect foreign investment existing on
the date of its publication.
Amendments to List B after promulgation
and publication of the first Regular Foreign
Investment Negative List at the end of the
transitory period shall not be made more
often than once every two [2] years. [as
amended by Republic Act No. 8179]
SEC. 9. Investment Rights of Former
Natural-Born Filipinos. - For purposes of
this Act, former natural born citizens of
the Philippines shall have the same
investment rights of a Philippine citizen in
Cooperatives under Republic Act No. 6938,
Rural Banks under Republic Act. No. 7353,
Thrift Banks and Private Development
Banks under Republic Act No. 7906, and
Financing Companies under Republic Act
No. 5980. These rights shall not extend to
activities reserved by the Constitution,
including [1] the exercise of profession:
[2] in defense-related activities under
Section 8 [b] hereof, unless specifically
authorized by the Secretary of National
Defense: and, [3] activities covered by
Republic Act No. 1180 [Retail Trade Act].
Republic Act No. 5187 [Security Agency
Act], Republic Act No. 7076 [Small Scale
Mining Act], Republic Act No. 3018. as
amended [Rice and Corn Industry Act],
and P.D. No. 449 [Cockpits Operation and
Management]. [as amended by Republic
Act No. 8179]
SEC. 10. Other Rights of Natural-Born
Citizen Pursuant to the Provisions of
Article XII, Section 8 of the Constitution. -
Any natural-born citizen who has lost his
Philippine citizenship and who has the
legal capacity to enter into a contract
under Philippine laws may be a transferee
of a private land up to a maximum area of
five thousand [5,000] square meters in the
case of urban land or three [3] hectares in
the case of rural land to be used by him
for business or other purposes. In the case
of married couples, one of them may avail
of the privilege herein granted: Provided,
That if both shall avail of the same, the
total area acquired shall not exceed the
maximum herein fixed.
In case the transferee already owns urban
or rural land for business or other
purposes, he shall still be entitled to be a
transferee of additional urban or rural land
for business or other purposes which when
added to those already owned by him
shall not exceed the maximum areas
herein authorized.
A transferee under this Act may acquire
not more than two [2] lots which should be
situated in different municipalities or cities
anywhere in the Philippines: Provided,
That the total land area thereof shall not
exceed five thousand [5,000] square
meters in the case of urban land or three
[3] hectares in the case of rural land for
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use by him for business or other purposes.
A transferee who has already acquired
urban land shall be disqualified from
acquiring rural land and vice versa. [as
amended by Republic Act No. 8179]
SEC. 11. Compliance with Environmental
Standards. - All industrial enterprises
regardless of nationality shall comply with
existing rules and regulations to protect
and conserve the environment and meet
applicable environmental standards.
SEC. 12. Consistent Government Action. -
No agency, instrumentality or political
subdivision of the Government shall take
any action in conflict with or which will
nullify the provisions of this Act, or any
certificate or authority granted hereunder.
SEC. 13. Implementing Rules and
Regulations. - NEDA, in consultation with
BOI, SEC and other government agencies
concerned, shall issue the rules and
regulations to implement this Act within
one hundred and twenty [120] days after
its effectivity. A copy of such rules and
regulations shall be furnished the
Congress of the Republic of the
Philippines.
SEC. 14. Administrative Sanctions. - A
person who violates any provision of this
Act or of the terms and conditions of
registration or of the rules and regulations
issued pursuant thereto, or aids or abets
in any manner any violation shall be
subject to a fine not exceeding One
hundred thousand pesos [P100,000].
If the offense is committed by a juridical
entity, it shall be subject to a fine in an
amount not exceeding 1/2 of 1% of total
paid-in capital but not more than Five
million pesos [P5,000,000]. The president
and/or officials responsible therefor shall
also be subject to a fine not exceeding
Two hundred thousand pesos [P200,000].
In addition to the foregoing, any person,
firm or juridical entity involved shall be
subject to forfeiture of all benefits granted
under this Act.
SEC shall have the power to impose
administrative sanctions as provided
herein for any violation of this Act or its
implementing rules and regulations.
SEC. 15. Transitory Provisions. - Prior to
the effectivity of the implementing rules
and regulations of this Act, the provisions
of Book II of Executive Order No. 226 and
its implementing rules and regulations
shall remain in force.
During the initial transitory period of
thirty-six [36] months after issuance of the
Rules and Regulations to implement this
Act, the Transitory Foreign Investment
Negative List shall consist of the following:
A. List A:
1. All areas of investment in which foreign
ownership is limited by mandate of the
Constitution and specific laws.
B. List B:
1. Manufacture, repair storage and/or
distribution of firearms, ammunition, lethal
weapons, military ordnance, explosives,
pyrotechnics and similar materials
required by law to be licensed by and
under the continuing regulation of the
Department of National Defense; unless
such manufacturing or repair activity is
specifically authorized, with substantial
export component, to a non-Philippine
national by the Secretary of National
defense;
2. Manufacture and distribution of
dangerous drugs; all forms of gambling;
nightclubs, bars, beer houses, dance halls;
sauna and steam bathhouses, massage
clinics and other like activities regulated
by law because of risks they may pose to
public health and morals;
3. Small and medium-sized domestic
market enterprises with paid-in equity
capital less than the equivalent of Two
hundred thousand US dollars
[US$200,000.00], are reserved to
Philippine nationals: Provided, That if: [1]
they involve advanced technology as
determined by the Department of Science
and Technology, or [2] they employ at
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least fifty [50] direct employees, then a
minimum paid-in capital of One hundred
thousand US dollars [US$100,000.00] shall
be allowed to non-Philippine nationals.
SEC. 16. Repealing Clause. - Articles forty-
four [44] to fifty-six [56] of Book II of
Executive Order No. 226 are hereby
repealed.
All other laws or parts of laws inconsistent
with the provisions of this Act are hereby
repealed or modified accordingly.
SEC. 17. Separability Clause. - If any part
or section of this Act is declared
unconstitutional for any reason
whatsoever, such declaration shall not in
any way affect the other parts or sections
of this Act.
SEC. 18. Effectivity. - This Act shall take
effect fifteen [15] days after approval and
publication in two [2] newspapers of
general circulation in the Philippines.
Approved,
(Sgd.) RAMON V. MITRA (Sgd.)
JOVITO R. SALONGA
Speaker of the House
President of the Senate
of Representatives
This bill, which is consolidation of Senate
Bill No. 1678 and House Bill No. 32496,
was finally passed by the Senate and the
House of Representatives on June 6, 1991.
Approved: June 13, 1991
(Sgd.) CORAZON C. AQUINO
President of the Philippines
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXX
Republic of the Philippines
Congress of the Philippines
Metro Manila
Thirteenth Congress
Third Regular Session
Begun and held in Metro Manila, on
Monday, the nineteenth day of February,
two thousand seven.
REPUBLIC ACT NO. 9439
April 27, 2007
AN ACT PROHIBITING THE
DETENTION OF PATIENTS IN
HOSPITALS AND MEDICAL CLINICS
ON GROUNDS OF NONPAYMENT
OF HOSPITAL BILLS OR MEDICAL
EXPENSES
Be it enacted by the Senate and
House of Representatives of the
Philippines in Congress assembled:
SECTION 1. It shall be unlawful for
any hospital or medical clinic in the
country to detain or to otherwise
cause, directly or indirectly, the
detention of patients who have fully or
partially recovered or have been
adequately attended to or who may
have died, for reasons of nonpayment
in part or in full of hospital bills or
medical expenses.
SEC. 2. Patients who have fully or
partially recovered and who already
wish to leave the hospital or medical
clinic but are financially incapable to
settle, in part or in full, their
hospitalization expenses, including
professional fees and medicines, shall
be allowed to leave the hospital or
medical clinic, with a right to demand
the issuance of the corresponding
medical certificate and other pertinent
papers required for the release of the
patient from the hospital or medical
clinic upon the execution of a
promissory note covering the unpaid
obligation. The promissory note shall
be secured by either a mortgage or by
a guarantee of a co-maker, who will be
jointly and severally liable with the
patient for the unpaid obligation. In
the case of a deceased patient, the
corresponding death certificate and
other documents required for
interment and other purposes shall be
released to any of his surviving
relatives requesting for the same:
Provided, however, That patients who
stayed in private rooms shall not be
covered by this Act.
SEC. 3. Any officer or employee of the
hospital or medical clinic responsible
for releasing patients, who violates the
provisions of this Act shall be punished
by a fine of not less than Twenty
thousand pesos (P20,000.00), but not
more than Fifty thousand pesos
(P50,000.00), or imprisonment of not
less than one month, but not more
than six months, or both such fine and
imprisonment, at the discretion of the
proper court.
SEC. 4. The Department of Health
shall promulgate the necessary rules
and regulations to carry out the
provisions of this Act.
SEC. 5. If any provision of this Act is
declared void and unconstitutional the
remaining provisions hereof not
affected thereby shall remain in full
force and effect.
SEC. 6. All laws, decrees, orders, rules
and regulations or part thereof
inconsistent with this Act are hereby
repealed or amended accordingly.
SEC. 7. This Act shall take effect
fifteen (15) days after its publication in
two national newspapers of general
circulation.
Approved,
MANNY VILLAR JOSE DE VENECIA JR.
President of the Senate Speaker of the House of
Representatives
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 This Act which originated in the House
of Representatives was finally passed
by the House of Representatives and
the Senate on June 7, 2005 and
February 19, 2007, respectively.
OSCAR G. YABES ROBERTO P. NAZARENO
Secretary of Senate Secretary General patient or his next of kin consents to said
House of Represenatives
Approved: April 27, 2007
GLORIA MACAPAGAL-ARROYO
President of the Philippines
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXX
REPUBLIC ACT NO. 8344
August 25, 1997
AN ACT PENALIZING THE REFUSAL OF
HOSPITALS AND MEDICAL CLINICS TO
ADMINISTER APPROPRIATE INITIAL
MEDICAL TREATMENT AND SUPPORT
IN EMERGENCY OR SERIOUS CASES,
AMENDING FOR THE PURPOSE BATAS
PAMBANSA BILANG 702, OTHERWISE
KNOWN AS "AN ACT PROHIBITING THE
DEMAND OF DEPOSITS OR ADVANCE
PAYMENTS FOR THE CONFINEMENT
OR TREATMENT OF PATIENTS IN
HOSPITALS AND MEDICAL CLINICS IN
CERTAIN CASES"
Section 1. Section 1 of Batas Pambansa
Bilang 702 is hereby amended to read as
follows:
"SECTION 1. In emergency or serious
cases, it shall be unlawful for any
proprietor, president, director, manager or
any other officer, and/or medical
practitioner or employee of a hospital or
medical clinic to request, solicit, demand
or accept any deposit or any other form of
advance payment as a prerequisite for
confinement or medical treatment of a
patient in such hospital or medical clinic or
to refuse to administer medical treatment
and support as dictated by good practice
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of medicine to prevent death or
permanent disability: Provided, That by
reason of inadequacy of the medical
capabilities of the hospital or medical
clinic, the attending physician may
transfer the patient to a facility where the
appropriate care can be given, after the
transfer and after the receiving hospital or
medical clinic agrees to the transfer:
Provided, however, That when the patient
is unconscious, incapable of giving
consent and/or unaccompanied, the
physician can transfer the patient even
without his consent: Provided, further,
That such transfer shall be done only after
necessary emergency treatment and
support have been administered to
stabilize the patient and after it has been
established that such transfer entails less
risks than the patient's continued
confinement: Provided, furthermore, That
no hospital or clinic, after being informed
of the medical indications for such
transfer, shall refuse to receive the patient
nor demand from the patient or his next of
kin any deposit or advance payment:
Provided, finally, That strict compliance
with the foregoing procedure on transfer
shall not be construed as a refusal made
punishable by this Act."
Section 2. Section 2 of Batas Pambansa
Bilang 702 is hereby deleted and in place
thereof, new sections 2, 3 and 4 are
added, to read as follows:
"SEC. 2. For purposes of this Act, the
following definitions shall govern:
"(a) 'Emergency' - a condition or state of a
patient wherein based on the objective
findings of a prudent medical officer on
duty for the day there is immediate
danger and where delay in initial support
and treatment may cause loss of life or
cause permanent disability to the patient.
"(b) 'Serious case' - refers to a condition of
a patient characterized by gravity or
danger wherein based on the objective
findings of a prudent medical officer on
duty for the day when left unattended to,
may cause loss of life or cause permanent
disability to the patient.
"(c) 'Confinement' - a state of being
admitted in a hospital or medical clinic for
medical observation, diagnosis, testing,
and treatment consistent with the
capability and available facilities of the
hospital or clinic.
"(d) 'Hospital' - a facility devoted primarily
to the diagnosis, treatment and care of
individuals suffering from illness, disease,
injury or deformity, or in need of
obstetrical or other medical and nursing
care. It shall also be construed as any
institution, building or place where there
are facilities and personnel for the
continued and prolonged care of patients.
"(e) 'Emergency treatment and support' -
any medical or surgical measure within
the capability of the hospital or medical
clinic that is administered by qualified
health care professionals to prevent the
death or permanent disability of a patient.
"(f) 'Medical clinic' - a place in which
patients can avail of medical consultation
or treatment on an outpatient basis.
"(g) 'Permanent disability' - a condition of
physical disability as defined under Article
192-C and Article 193-B and C of
Presidential Decree No 442; as amended,
otherwise known as the Labor Code of the
Philippines.
"(h) 'Stabilize' - the provision of necessary
care until such time that the patient may
be discharged or transferred to another
hospital or clinic with a reasonable
probability that no physical deterioration
would result from or occur during such
discharge or transfer.
"SEC. 3. After the hospital or medical clinic
mentioned above shall have administered
medical treatment and support, it may
cause the transfer of the patient to an
appropriate hospital consistent with the
needs of the patient, preferably to a
government hospital, specially in the case
of poor or indigent patients.
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"SEC. 4. Any official, medical practitioner
or employee of the hospital or medical
clinic who violates the provisions of this
Act shall, upon conviction by final
judgment, be punished by imprisonment
of not less than six (6) months and one (1)
day but not more than two (2) years and
four (4) months, or a fine of not less than
Twenty thousand pesos (P20,000.00), but
not more than One hundred thousand
pesos (P100,000.00) or both, at the
discretion of the court: Provided, however,
That if such violation was committed
pursuant to an established policy of the
hospital or clinic or upon instruction of its
management, the director or officer of
such hospital or clinic responsible for the
formulation and implementation of such
policy shall, upon conviction by final
judgment, suffer imprisonment of four (4)
to six (6) years, or a fine of not less than
One hundred thousand pesos
(P100,000.00), but not more than Five
hundred thousand pesos (P500,000.00) or
both, at the discretion of the court."
Section 3. Section 3 of Batas Pambansa
Bilang 702 is hereby repealed.
Section 4. Section 4 of Batas Pambansa
Bilang 702 shall become Section 5 thereof
and shall be amended to read as follows:
"SEC. 5. The Department of Health shall
promulgate the necessary rules and
regulations to carry out the provisions of
this Act."
Section 5. This Act shall take effect
fifteen (15) days after its publication in
two (2) national newspapers of general
circulation.
Approved: August 25, 1997
REPUBLIC ACT NO. 6615
AN ACT REQUIRING GOVERNMENT
AND PRIVATE HOSPITALS AND
CLINICS TO EXTEND MEDICAL
ASSISTANCE IN EMERGENCY CASES
SECTION 1. All government and private In the case of private hospitals, aside from
hospitals or clinic duly licensed to operate the imposition of penalty upon the person
as such are hereby required to render or persons guilty of the violations, the
immediate emergency medical assistance license of the hospital to operate shall,
and to provide facilities and medicine whenever justified, be suspended or
within its capabilities to patients in revoked.
emergency cases who are in danger of
dying and/or who may have suffered SECTION 4. Subject to the approval of
serious physical injuries. the Secretary of Health, the Bureau of
Medical Services shall promulgate the
SECTION 2. The expenses and losses of necessary rules and regulations to carry
earnings incurred by a private hospital of out the provisions of this Act.
clinic for medicines, facilities and services
beyond first aid extended to emergency SECTION 5. Any law or laws or parts
cases as required herein, and not to thereof inconsistent with the provisions of
exceed fifty thousand pesos per year, this Act is hereby repealed.
shall be deductible expenses and losses
for income tax purposes which may be SECTION 6. This Act shall take effect
carried over for a period of five years, any upon its approval.
provision of law or regulation to the
contrary notwithstanding. Approved: October 23, 1972

SECTION 3. Any hospital director,

administrator, officer-in-charge or
physician in the hospital, medical center
or clinic, who shall refuse or fail without
good cause to render the appropriate
assistance pursuant to the requirements
of section one after said case had been
brought to his attention, or any nurse,
midwife or medical attendant who shall
refuse to extend the appropriate
assistance, subject to existing rules, or
neglect to notify or call a physician shall
be punished by imprisonment of one
month and one day to one year and one
day, and a fine of three hundred pesos to
one thousand pesos, without prejudice to
the provisions of Republic Act Numbered
Twenty-three hundred eighty-two in the
case of physicians.

In the case of Government hospitals, the

imposition of the penalty upon the person
or persons guilty of the violations shall be
without prejudice to the administrative
action that might be proper.

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