Financial and Operational Challenges
- GSIS must prioritize actuarial solvency by investing in assets with assured long-term returns.
- Conflict exists between providing high-quality medical care and charging fees affordable to low-income groups.
- High-quality care cannot be self-sustained via low fees; raising fees restricts access to higher-income groups.
- Reducing quality to cut costs is undesirable.
- Subsidizing the hospital’s operations is necessary but is not a function of GSIS.
Rationale for Transfer to the National Government
- GSIS Hospital has consistently incurred losses since inception.
- National government, through the Department of Health (DOH), is better suited to manage and subsidize hospital operations.
- Transferring ownership and operations aligns with sound national policy.
- DOH requires additional service, research, teaching, and training hospitals.
- GSIS must be reimbursed without jeopardizing actuarial solvency.
Dissolution of GSIS Hospital and Transfer to DOH
- GSIS Hospital, Inc. is dissolved; all assets, liabilities, and records transferred to DOH.
- Hospital renamed as 'Ospital Ng Bagong Lipunan'.
Reimbursement to GSIS
- National government to reimburse GSIS the sum of 70 million pesos.
- Reimbursement can be in cash, government bonds, or real estate, per GSIS appraisal.
Governance Structure
- Ospital Ng Bagong Lipunan governed by a seven-member Board of Governors.
- Secretary of Health serves as Chairman.
- Six members appointed by Secretary of Health for six-year terms, with possible reappointment.
- Members must be natural-born Filipinos, at least 35 years old, with integrity and expertise in specified fields.
- Board members receive per diem and capped representation/transport expenses.
Personnel Review and Employment Regulations
- Secretary of Health and Board to review and screen hospital employees.
- Removal of officers/employees not meeting qualifications or unsatisfactory service.
- Removed personnel entitled to accrued vacation, sick leave, and retirement benefits.
- Those ineligible under retirement laws paid one month salary per year of service, capped at one year’s salary.
Reorganization Authority
- Secretary of Health, via the Board and with Budget Commission coordination, may reorganize the hospital.
- Powers include creating, merging, abolishing units and positions, hiring, promoting, and separating personnel.
- Goal: promote effective service and economical management.
Appropriations and Funding
- Appropriated 70 million pesos for GSIS reimbursement.
- Appropriated 15 million pesos for hospital operating expenses, including employee benefits.
- Funds to be released immediately by the Budget Commission.
Legal Provisions
- Invalidity of any provision does not affect the rest of the Decree.
- Repeals all laws and regulations inconsistent with the Decree.
Effectivity
- The Decree takes effect immediately upon issuance.