Dissolution and Transfer of GSIS Hospital

Section 2 requires the National Government to reimburse the Government Service Insurance System (GSIS).
Section 2 sets the reimbursement amount at Seventy Million Pesos (P70,000,000.00).
Section 2 makes the reimbursement due upon the effectivity of this Decree, payable either in cash or government bonds or real estate properties of the national government.
Section 2 requires payment in accordance with the appraisal of the GSIS.

Section 3 establishes a Board of Governors to govern the Ospital Ng Bagong Lipunan.
Section 3 provides that the Board has seven (7) members, with the Secretary of Health as Chairman.
Section 3 directs the Secretary of Health to appoint the other six (6) members.
Section 3 sets the appointed members’ term at six (6) years, without prejudice to reappointment.
Section 3 requires the Secretary of Health to fill any vacancy for an unexpired term.

Section 3 requires that no person be appointed governor unless he is a natural born citizen of the Philippines and not less than 35 years of age.
Section 3 requires “established integrity” and attained proficiency, expertise and recognized competence in one or more of the following: hospital administration, government administration, medicine, law and finance.
Section 3 provides that governors receive a per diem of five hundred pesos (PHP 500) for every meeting and representation and transportation expenses.

Section 3 caps transportation expenses at not exceeding two thousand pesos (PHP 2,000) a month.

Section 4 empowers the Secretary of Health, through the Board, to review and screen all officers and employees of the hospital.
Section 4 requires removal of incumbents who do not satisfactorily meet qualification requirements or who have not rendered satisfactory service to the hospital.
Section 4 mandates that removed officers and employees be paid the money value of accumulated vacation and sick leave, and such retirement gratuity as may be due him under existing retirement laws.
Section 4 provides a fallback payment for those who do not qualify under any existing retirement law: one month salary for every year of service, but not exceeding one year salary.

Section 5 authorizes the Secretary of Health, through the Board, to reorganize the hospital to carry out the Decree’s objectives and other laws implemented by the DOH.
Section 5 requires reorganization to be done in coordination with the Budget Commission.
Section 5 permits reorganization by creating, merging, consolidation, or abolishing operating units and positions.
Section 5 permits reorganization by hiring, appointing, promoting, and separating personnel, and by any and all acts promoting effective service and economical management and administration of the Ospital Ng Bagong Lipunan.

Section 6 appropriates Seventy Million Pesos (P70,000,000.00) to pay the GSIS.
Section 6 appropriates Fifteen Million Pesos (P15,000,000.00) out of any funds in the National Treasury not otherwise appropriated for the hospital’s operating expenses.
Section 6 directs the Fifteen Million Pesos (P15,000,000.00) to cover the money value of accumulated vacation and sick leave, and gratuity benefits.
Section 6 requires that these amounts be immediately released by the Budget Commission.

Section 7 provides that if any section, paragraph, sentence, clause, or word is declared invalid for any reason, the remaining provisions continue in effect.
Section 8 repeals or amends accordingly all laws, decrees, orders, rules and regulations that are inconsistent with the Decree.

Section 9 provides that the Decree takes effect immediately.
The Decree is Presidential Decree No. 1411 titled “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.”
The Decree is June 09, 1978, issued by President FERDINAND E. MARCOS.