Bill seeks to turn government hospitals into state firms

MANILA, Philippines—A bill that seeks to convert national government hospitals into government- owned and controlled corporations (GOCCs) has been filed in the Senate.

Senator Franklin Drilon said Senate Bill 3130 known as the “National Government Hospital Corporate Restructuring Act,” which he filed, would help improve the health services delivery throughout the country.

The bill, Drilon said, would also align the present organizational structure of 26 government hospitals with that of the GOCCs.

“The restructuring of national government hospitals to corporate entities will capacitate them to engage in revenue-generating activities, and proceeds of which can be used to subsidize medical care of indigent patients,” Drilon said in a statement on Tuesday.

“Fiscal autonomy of government hospitals will lead to more efficient delivery of health services,” he said, noting that the measure will likewise save government funds that it could use to bankroll other health efforts.

Under the bill, hospital administrators will be given free hands to manage its resources; acquire, lease or sell assets; borrow funds from local or foreign creditors; and accept donations. It will also allow them to determine its organizational structure and staffing pattern consistent with the pertinent provisions of GOCC Governance Act of 2011.

Drilon believes that his bill, once passed into law, will provide all citizens especially the poor and marginalized with an acceptable, modern, affordable and efficient national hospital care delivery system.

At present, there are 26 state hospitals being run under the administrative supervision of the Department of Health. These include Cagayan Valley Medical Center, Veterans Regional Hospital, Baguio General Hospital and Medical Center, Region I Medical Center, and Ilocos Training and Regional Medical Center in Northern Luzon; Dr. Paulino J. Garcia Memorial Research and Medical Center and Jose B. Lingad Memorial Medical Center in Central Luzon; and Batangas Regional Hospital in Southern Luzon.

Bicol Medical Center and Bicol Research Training and Teaching Hospital in Bicol Region and Quirino Memorial Medical Center, Jose R. Reyes Memorial Medical Center, Rizal Medical Center, Amang Rodriguez Medical Center, San Lazaro Hospital, Vicente Sotto Memorial Medical Center in National Capital Region.

In Visayas Region, the government hospitals are Corazon Locsin Montelibano Memorial Regional Hospital, Western Visayas Medical Center in Region VI and Eastern Visayas Regional Medical Center in Region VIII.

In Mindanao, hospitals that can be converted into GOCCs are Northern Mindanao Medical Center in Cagayan de Oro, Mayor Hilarion A. Ramiro, Sr. Regional Training and Teaching Hospital in Region X; Southern Philippines Medical Center and Davao Regional Hospital in Region XI; Zamboanga City Medical Center in Region IX; Cotabato Regional and Medical Center in Region XII; and CARAGA Regional Hospital in Region XIII.