Presidential Decree No. 1411 (PD 1411) — Dissolving the GSIS Hospital Inc., and Transferring All Its Assets, Liabilities and Properties to the Department of Health and Appropriating Funds for Its Operations and for Other Purposes
WHEREAS, the GSIS General Hospital was established by the
Government Service Insurance System in 1969 as part of its services to its
members;
WHEREAS, it is imperative for the Government service
Insurance System to keep its funds actuarially solvent by confining its
investments to those that carry a reasonable assurance of earning a sufficient
rate of return over the long-range;
WHEREAS, preserving actuarial solvency of the GSIS funds
should take priority over the direct provision and delivery of medical services,
a task more appropriately performed by other agencies;
WHEREAS, there is a basic conflict between the aim of the
GSIS Hospital to provide high quality hospital services on the one hand, and to
limit its charges and fees to those within the reach of the low-income groups on
the other hand;
WHEREAS, the cost of providing and delivering high quality
medical care cannot be financed and sustained on a self-liquidating basis by the
low-levels of fees and charges within the paying capacity of the low-income
groups;
WHEREAS, one possible but unacceptable way of making the
GSIS Hospital self-sustaining and self-liquidating is to increase its fees and
charges to levels that will only convert it into a hospital for the relatively
higher-income groups;
WHEREAS, on the other hand, another possible but
unacceptable solution to the conflict is to reduce the cost of its medical
services by reducing their quality to undesirably low levels;
WHEREAS, the provision of high quality medical services at
relatively low fees and charges can only be made possible by subsidizing the
operations of the GSIS Hospital;
WHEREAS, the provision of subsidies is the proper function
not of the GSIS but of the national government, since subsidizing an inherently
unprofitable operation is inconsistent with the over-riding need to preserve the
actuarial solvency of the GSIS funds;
WHEREAS, the GSIS Hospital has been incurring losses since
its establishment, for the reasons cited above, and is expected to continue
incurring losses in the future if it is to continue incurring medical services
of acceptable quality at cost within the reach of the low-income groups;
WHEREAS, in view of the above-mentioned factors, it has
become a matter of sound national policy to transfer the ownership of and the
operating responsibilities over the GSIS Hospital from the GOVERNMENT SERVICE
INSURANCE SYSTEM to the National Government;
WHEREAS, the Department of Health, the government agency
charged with the responsibility of effective health care delivery to our people
will be in the best position to manage and operate the GSIS Hospital;
WHEREAS, there is an imperative necessity to have additional
service, research as well as teaching and training hospitals under the
Department of Health; and
WHEREAS, the GSIS Hospital was established with the trust
funds of the GSIS members and, accordingly, GSIS must be reimbursed its expenses
so as not to jeopardize its actuarial solvency and its financial capabilities to
meet GSIS obligations to its members;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the power vested in me by the Constitution, do hereby
order and decree:
SECTION 1. The GSIS Hospital, Inc. is hereby dissolves and
abolished and its properties, records, assets, liabilities, rights and choses in
action, and shares of stock of the GSIS Hospital, Inc. are hereby transferred
to, and placed under the jurisdiction control, supervision and operation of the
Department of Health and shall, henceforth, be known as the "Ospital Ng Bagong
Lipunan".
SEC. 2. The National Government shall reimburse the
Government Service Insurance System, the owner, the sum of Seventy Million Pesos
(P70,000,000.00) upon the effectivity of this Decree, either in cash or
government bonds or real estate properties of the national government in
accordance with the appraisal of the GSIS.
SEC. 3. Board of Governors. The Ospital Ng Bagong Lipunan
shall be governed by a Board of Governors consisting of seven (7) members, with
the Secretary of Health as Chairman. The Secretary of Health shall appoint the
other six (6) members of the board whose term shall be for a period of six (6)
years without prejudice to reappointment. In case of any vacancy in the Board,
the same shall be filled by the Secretary of Health for an unexpired term. No
person shall be appointed governor unless he is a natural born citizen of the
Philippines, not less than 35 years of age, of established integrity and has
attained proficiency, expertise and recognized competence in one or more of the
following: hospital administration, government administration, medicine, law and
finance. They shall receive a per diem of five hundred pesos for every meeting
and representation and transportation expenses not exceeding two thousand pesos
a month.
SEC. 4. The Secretary of Health, through the Board, is
hereby empowered to review and screen all officers and employees of the
hospital. All incumbents who do not satisfactorily meet the qualification
requirements of their respective positions and those who have not rendered
satisfactory service to the hospital shall be removed from office. Any of the
officers and employees who are removed from office due to the aforementioned
reasons shall be paid by the money value of his accumulated vacation and sick
leave and such retirement gratuity as may be due him under existing retiremnet
laws. Those who do not qualify under any existing retirement law shall be paid
one month salary for every year of service but not exceeding one year
salary.
Reorganization.
SEC. 5. Reorganization.—To carry out the objectives
of this Decree and other laws implemented by the Department of Health, the
Secretary of Health, through the Board, and in coordination with the Budget
Commission, shall have power and authority to reorganize the hospital by
creating, merging, consolidation, or abolishing operating units and positions,
by hiring, appointing, promoting and separating personnel, and by way any all
acts tending to promote effective service as well as economical management and
administration of the Ospital Ng Bagong Lipunan.
SEC. 6. There is hereby appropriated the amount of Seventy
Million Pesos (P70,000,000.00) to pay the Government Service Insurance System
and the sum of Fifteen Million Pesos (P15,000,000.00) out of any funds in the
National Treasury not otherwise appropriated for the operating expenses of the
Hospital and such sum to cove the money value of accumulated vacation and sick
leave, and gratuity benefits, which amounts shall immediately be released by the
Budget Commission.
SEC. 7. In the event that any section, paragraphs, sentence,
clauses or words of this Decree is declared invalid for any reason, other
provisions thereof shall not be affected thereby.
Repealing Clause.
SEC. 8. Repealing Clause.—All laws, decrees,
orders, rules and regulations which are inconsistent with this Decree are hereby
repealed or amended accordingly.
Effectivity Clause.
SEC. 9. Effectivity Clause.—This Decree shall take
effect immediately.
Done in the City of Manila, this 9th day of June, in the year of Our Lord,
nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JACOBO C. CLAVE
Presidential Executive
Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
