CREATION OF HOSPITAL DEVELOPMENT FUND PROPOSED

Senate Minority Leader Aquilino "Nene" Q. Pimentel, Jr. (PDP-Laban) today proposed the creation of a special fund which the government can use to subsidize financially-needy private hospitals, particularly in upgrading their medical equipment and facilities.

Under Senate Bill 1144 authored by Pimentel, the Private Hospital Development Fund (PHMF) will be sourced from the real property taxes paid by private hospitals.

The bill mandates the formulation of a Private Hospital Development Plan (PHDP) which shall be based on the needs of private hospitals in terms of equipment, facilities and human resources. Part of the plan is the grant of tax incentives to accredited private hospitals.

"Through this bill, we hope to build a bridge of cooperation between the government and private hospitals. It shall provide the needed link between the public's over-growing health care needs and the advanced medical services afforded by private hospitals to help build a healthy nation," Pimentel said.

He said the government, as a partner in promoting the people's health, must provide assistance to private hospitals to ensure their viability and high-quality service.

In making his proposal, Pimentel noted that 70 percent of the country's hospitals are privately-owned.

"Distributed in the different areas of the country, these institutions provide the much-needed medical services and facilities that government hospitals cannot alone provide, thereby filling a void in the people's health needs," he said.

The bill directs the Secretary of Health to draw up the Private Hospital Development Plan in consultation with the appropriate government agencies, the Philippine Hospital Association and non-government organizations (NGOs).

The Pimentel bill provides that the PHDP shall assess the prevailing health situation in certain communities in terms of medical services, provide incentives for, and establish linkages with private hospitals and clinics to meet these needs.

The plan will identify unserved or underserved areas in terms of secondary and tertiary health care, where private hospitals can be established and provide proper incentives in collaboration with other government agencies.

Government assistance will be extended to community-based health projects in various parts of the country.

Under the bill, the Private Hospital Development Fund shall be managed and disbursed by a local board which shall be constituted in each municipality or chartered city where private hospitals operate.

The Private Hospital Fund Board would be composed of the mayor of the municipality or city as chairperson; a director from every private hospital in the municipality or city; the municipal or city health officer; and two representatives of the private sector or non-government organizations.