Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1411)
The Government Service Insurance System (GSIS) Hospital, Inc. was dissolved by Presidential Decree No. 1411.
All assets, liabilities, and properties of the GSIS Hospital were transferred to the Department of Health.
The GSIS Hospital shall henceforth be known as the 'Ospital Ng Bagong Lipunan'.
The National Government was to reimburse the GSIS the sum of Seventy Million Pesos (P70,000,000.00).
The reimbursement can be made either in cash, government bonds, or real estate properties of the national government as appraised by the GSIS.
The Secretary of Health serves as the Chairman of the Board of Governors.
A board member must be a natural born citizen of the Philippines, at least 35 years old, of established integrity, and have proficiency, expertise, and recognized competence in hospital administration, government administration, medicine, law, or finance.
The Secretary of Health, through the Board, can review, screen, and remove officers and employees who do not meet qualifications or render unsatisfactory service.
Removed employees shall receive payment equivalent to the money value of their accumulated vacation and sick leave, and retirement gratuity under existing laws. Those not covered by retirement laws receive one month salary per year of service, capped at one year salary.
The Secretary of Health, through the Board and in coordination with the Budget Commission, can reorganize the hospital by creating, merging, consolidating, or abolishing units and positions, and appointing and separating personnel to promote effective service and economical management.
Fifteen Million Pesos (P15,000,000.00) was appropriated from the National Treasury for operating expenses, including payments of accumulated leave and gratuity benefits.
Reasons include the need to preserve actuarial solvency of GSIS funds, conflict between providing quality care and limiting fees for low-income groups, and the hospital consistently incurring losses.
If any section, paragraph, sentence, clause, or word is declared invalid, other provisions of the decree shall not be affected.
The decree took effect immediately upon issuance on June 9, 1978.