Medical Scholarship and Return Service Program

Policy, purpose, and intent

Section 2 declares State policy to protect and promote the people’s right to health through strategies for the generation, recruitment, retraining, regulation, retention, and reassessment of the health workforce.
Section 2 declares State policy to promote social justice by expanding access to quality education and creating opportunities for underprivileged individuals.
Section 2 establishes a medical scholarship and return service to help deserving medical students pursue Doctor of Medicine education and training.
Section 2 requires that scholars eventually render services in government public health offices or government hospitals in their hometown, or in any municipality in their home province, or in any underserved municipality in any province as part of integration into the public health and medical service system.
Section 2 aims to ensure availability of doctors providing quality basic, promotive, preventive, and curative health care services in every municipality, especially underserved, remote, economically underdeveloped, distressed, conflict-afflicted, and geographically disadvantaged areas.

Program establishment and coverage

Section 3 establishes the Medical Scholarship and Return Service Program (MSRS Program) for deserving students in state universities and colleges (SUCs) or in partner private higher education institutions (PHEIs) in regions where there are no SUCs offering a medical course.
Section 3 authorizes CHED to designate more than one (1) partner HEI in the region, including regions with existing SUCs offering the Doctor of Medicine program, upon consultation with DOH.
Section 3 mandates prioritization in scholarship-slot allocation: qualified applicants from municipalities without government physicians receive priority to ensure assignment of at least one (1) doctor for every municipality in the country.
Section 4 covers deserving Filipino students who want to pursue a degree in Doctor of Medicine.
Section 4 enumerates the student financial assistance includes:
- free tuition and other school fees;
- allowance for prescribed books, supplies and equipment;
- clothing or uniform allowance;
- allowance for dormitory or boarding house accommodation;
- transportation allowance;
- internship fees, including financial assistance during mandatory internship;
- medical board review fees;
- license fees;
- annual medical insurance; and
- other education-related miscellaneous subsistence or living allowances.

Eligibility, qualification, and scholarship conditions

Section 5 requires applicants to be Filipino citizens residing in the Philippines.
Section 5 requires applicants to be graduating students or graduates of an appropriate undergraduate program identified as a prerequisite for a Doctor of Medicine degree from any CHED-recognized HEI, including a direct entrant to the Integrated Liberal Arts and Medicine (INTARMED) Program who completes the first two (2) years of the Program.
Section 5 includes deserving incoming second year medical students and higher year levels, provided they complied with academic requirements and retention policies of the school in past terms preceding scholarship application.
Section 5 requires passage of the National Medical Admission Tests (NMAT) mandated by CHED and required by the SUC or PHEI where enrollment is intended.
Section 5 requires passing the entrance examination and compliance with other admission requirements for the Doctor of Medicine degree in the chosen SUC or PHEI, and compliance with other CHED and DOH requirements.
Section 6 conditions grant of scholarship on:
- signing an agreement stating terms and conditions of the scholarship in a form prescribed by CHED and DOH;
- carrying the full load per semester and not dropping any course causing underloading;
- finishing the entire Doctor of Medicine Program within the prescribed period, subject to institutional retention policies, with limited ability to defer enrollment or file leave of absence for valid and justifiable reasons (before enrollment) and for enrolled scholars (via leave of absence for valid and justifiable reasons);
- undertaking mandatory internship in the SUC’s or PHEI’s base hospital upon graduation (for four (4)-year programs) or on the last year (for five (5)-year programs), and if no internship slots are available in the base hospital, undertaking it in a DOH-accredited public health facility or hospital or any accredited government health facility or hospital, subject to compliance with the requirements of the association that credits the internship program;
- taking the board examination within a maximum period of one (1) year after completion of the mandatory internship program; and
- rendering return of service under Section 8.
Section 6 requires that a scholar who fails to pass the licensure examination within one (1) year after graduation and completion of mandatory internship and academic requirements shall shoulder all expenses for succeeding professional licensure examinations.

Disqualifications and repayment triggers

Section 7 provides that scholarship grant terminates and the scholar must repay the full cost of scholarship and related benefits received, including expenses incurred during the scholarship program, upon any of the following:
- acceptance of another scholarship from other government or private agency or entity while enjoying benefits under the Act;
- failure to meet academic requirements or to complete the course within the prescribed period without valid cause determined by the SUC or PHEI, or by CHED or DOH through appropriate regulations, including causes such as absence without notice, willful neglect, or other causes within the scholar’s control;
- failure to obtain a passing grade in the Physician Licensure Examination (PLE) within five (5) years from completion of the mandatory internship program; or
- commission of gross misconduct by the scholar while being a scholar, in a manner that would bring significant damage to the SUC or PHEI concerned or to the community as a whole.
Section 7 allows an alternative to full repayment for a scholar whose scholarship status is terminated under Section 7(b) or Section 7(c): the scholar may opt to engage in work within the public health service system (including health-related research for government or teaching health-related subjects in a public educational institution), or be integrated into the public health service system for a period pro-rated to the number of years of mandatory return service.
Section 7 states that the alternative return service excludes the period of mandatory internship and residency training undertaken in a private health institution or facility.

Mandatory integration and return service

Section 8 requires that upon passing the PLE administered by the PRC and upon PRC conferment of the license to practice medicine, the scholar shall be integrated into the public health and medical service system through DOH.
Section 8 provides that the integrated scholar receives appropriate civil service rank, salary, and related benefits.
Section 8 requires return service in a government public health office, government hospital, or any accredited government health facility in the scholar’s hometown.
Section 8 allows, in the absence of a need in the hometown, service in any municipality in the scholar’s home province, or in any underserved municipality closest to the hometown determined by DOH as a priority area.
Section 8 mandates minimum return service duration of at least one (1) year for every scholarship year availed of.
Section 8 prioritizes hometown rendering for scholars from municipalities with no government physicians.
Section 8 requires that a scholar who assumed a slot intended for a resident of another municipality (where the original resident did not qualify as a scholar under the Act) shall render return service in the same municipality where the slot was originally intended.
Section 8 limits mandatory service to a municipality only if no threat to the scholar’s life is present.
Section 8 fixes the window for mandatory return service:
- within six (6) years from passing the PLE for those who availed of a four (4)-year program; and
- within seven (7) years for those who availed of a five (5)-year program.
Section 8 empowers DOH, during times of pandemic or public health emergency, to require scholars to serve in any public health office or government hospital where needed.
Section 8 clarifies that mandatory return service and integration are separate and distinct from the mandatory internship required prior to taking the physician licensure examination.
Section 8 provides that service years may be credited toward return-service requirements if the SUC or PHEI concerned counts:
- service in the public health and medical service system as part of return service requirements; or
- health or medical research within the Philippines in a public institution or any international organization accredited by DOH for work for the underprivileged areas within the Philippines; or
- full-time teaching in a public institution.
Section 8 requires appropriate salaries and other benefits for service rendered under mandatory integration.

Sanctions for non-compliance

Section 9 imposes a financial sanction on a physician who availed of the MSRS Program but fails or refuses to comply with mandatory return service and integration: the physician must pay two (2) times the full cost of scholarship, including other benefits and expenses incurred due to participation in the MSRS Program.
Section 9 provides that if the required payment is not made, the PRC must deny renewal of the physician’s license.
Section 9 excludes physicians who fail to comply due to severe or serious illness from the penalties stated in Section 9.

Roles of CHED, DOH, SUCs/PHEIs, LGUs

Section 13 assigns CHED these functions:
- conduct regular information dissemination and recruitment to the MSRS Program in SUCs and PHEIs;
- review, modify, and enhance medical education curriculum standards to prepare graduates for community-based health programs and comparable international quality;
- coordinate with DOH for continuous training programs while scholars serve return service;
- coordinate with DOH, SUCs, and PHEIs for integration of the scholar into the public health and medical service system;
- formulate, promulgate, disseminate, and implement policies, standards, guidelines, and rules for effective implementation;
- develop strategies to improve Doctor of Medicine Program quality and implement quality control for offering Doctor of Medicine Programs in SUCs and PHEIs;
- require SUCs and PHEIs to implement and submit a tracking, monitoring, evaluation, and assistance system to determine scholars’ whereabouts after graduation;
- ensure timely and adequate release of funds to partner SUCs and PHEIs and monitor timely and adequate release to scholar-beneficiaries; and
- recommend to DBM the amount necessary for effective implementation.
Section 14 assigns SUCs and PHEIs these functions:
- monitor scholars’ progress, identify low/failing grades, and counsel improvement;
- coordinate with CHED to ensure timely release and accurate distribution of allowances and other fees;
- submit an annual report to CHED on scholar performance and other vital information;
- assist CHED in information dissemination and recruitment;
- review, modify, and enhance curriculum for community-based health programs and medical developments;
- recommend strategies to CHED and DOH to improve implementation;
- conduct tracer studies on scholars’ whereabouts after graduation and submit results to CHED;
- recommend to CHED and DBM the needed budget based on projected capacity and evaluation of funding adequacy; and
- perform other acts deemed necessary for MSRS success.
Section 15 assigns DOH these functions:
- in coordination with CHED, SUCs, and PHEIs, determine initial number and distribution of physicians needed for each municipality/province every five (5) years;
- ensure all regions have at least one Level III DOH hospital for possible medical school partnership/base hospital;
- ensure integration of scholars into the public health and medical service system and monitor performance during mandatory return service;
- assist CHED in regular information dissemination and recruitment;
- craft a physician career pathway in the public health and medical service system;
- coordinate with LGUs for mandatory integration; and
- recommend to DBM creation of plantilla positions with salary grades commensurate to educational achievement, training, and other qualifications.
Section 16 mandates LGUs to support integration, requiring them to:
- create mechanisms for necessary support, including safety and protection;
- coordinate with DOH and physicians to determine community health needs and provide assistance, including research component involvement;
- maintain a regular counterpart fund for balance of scholarship budget for enrolled scholars, as practicable and subject to funds;
- provide other financial assistance, subject to availability of funds;
- recommend strategies to CHED to improve implementation;
- conduct information dissemination campaigns on MSRS within the municipality/province with objective of attracting qualified applicants;
- execute and enforce laws/ordinances/regulations with positive impact on MSRS; and
- perform other acts to assist scholars in completing Doctor of Medicine Program within time frame provided by the medical school or CHED.

Oversight, training, school/plantilla expansion

Section 11 requires CHED and DOH to develop continuous training programs for scholars while they serve mandatory return service.
Section 12 directs CHED, in coordination with DOH, to ensure each region has at least one (1) medical school and to streamline requirements for authority to offer Doctor of Medicine Program.
Section 12 requires CHED and DOH to issue guidelines within sixty (60) days from effectivity to facilitate partnerships between SUCs and DOH hospitals, aiming to increase number of medical schools, including at least one (1) state-operated medical school per region.
Section 12 requires implementation milestones:
- within three (3) years from effectivity, there shall be a state-operated medical school in at least half of the regions within existing state-operated medical school; and
- within five (5) years from effectivity, there shall be at least one (1) state-operated medical school in each region.
Section 12 requires DBM, DOH, and LGUs (where applicable) to ensure scholars required to render return service are appointed to appropriate plantilla positions commensurate to merit and fitness.
Section 19 creates a Joint Congressional Oversight Committee on MSRS Program to oversee, monitor, and evaluate implementation.
Section 19 provides the Oversight Committee has five (5) members each from the Senate and House of Representatives, and enumerates the following included positions:
- Chairperson of the Senate Committee on Higher, Technical and Vocational Education;
- Chairperson of the House Committee on Higher and Technical Education;
- Chairperson of the Senate Committee on Health and Demography;
- Chairperson of the House Committee on Health; and
- three (3) members each chosen from the respective committee memberships by the Senate President and House Speaker.
Section 19 requires that at least one (1) member from the nominees from each House and Senate be chosen from the Minority party/bloc.

Funding, harmonization, planning, and implementing rules

Section 10 mandates harmonization: upon effectivity, all nationally-funded medical scholarship programs must be harmonized, rationalized, and consolidated under the MSRS Program in coordination with the UniFAST Board created under Republic Act No. 10687 (United Student Financial Assistance System for Tertiary Education (UniFAST) Act).
Section 17 charges the amount necessary to carry out implementation against the current year’s appropriation of participating SUC, DOH, and CHED.
Section 17 requires that thereafter, amounts for continuous implementation be included in the scholarship program of SUCs and CHED in the annual General Appropriations Act.
Section 20 requires determination and allocation:
- Every five (5) years from effectivity, DOH and CHED shall, after assessing shortage of health human resources against ideal standards and the National Health Human Resources Master Plan created under Section 23 of Republic Act No. 11223 (Universal Health Care Act), and after consultation with participating SUCs/PHEIs, DBM, and PRC, determine the number and geographical allocation of scholars admitted every school year.
- Section 20 mandates allocating at least one (1) scholarship slot in municipalities without government physicians.
- Section 20 mandates utmost priority to regions with low doctor-to-population ratios when determining allocation quota.
- Section 20 requires DOH to submit to Congress the National Health Human Resource Master Plan and updates in accordance with the Universal Health Care Law.
Section 21 requires CHED and DOH to formulate and issue implementing rules and regulations within 120 days from effectivity, in coordination with enumerated stakeholders including CHED, DOH, CHED- and HEI-related bodies, municipalities, DOH/PRC/DBM, SUCs/PHEIs, and medical associations.
Section 21 provides that the absence of implementing rules and regulations does not affect the effectivity of the Act or the grant of benefits provided therein.

Transitory, separability, and repealing effects

Section 18 provides a transitory eligibility rule: current scholars under existing DOH and CHED medical scholarship programs become eligible to avail the Act’s benefits upon effectivity.
Section 22 contains a separability clause: if any part or provision is held invalid or unconstitutional, the unaffected parts remain in full force and effect.
Section 23 contains a repealing clause: all laws, decrees, or rules inconsistent with the Act are repealed or modified accordingly.