Law Summary
Coverage and Application Requirements
- All applicants for a Preliminary Technical Certificate (PTC) for new general hospitals post-May 2, 2006, must secure a CON from the concerned Center for Health Development (CHD).
- Conversion or upgrading of birthing homes or special hospitals to general hospitals also require a CON.
- Applicants with previously disapproved or lapsed permits must secure a new CON.
- Work not started within 365 days from permit issuance, or abandoned, results in permit lapse and the need for a new CON.
- Changes involving hospital management, ownership, name, or location require new applications with a new CON.
Application Process and Fees
- Applicants must submit a DOH-prescribed application form to the CHD.
- A non-refundable application fee of PHP 2,000 is required, subject to periodic updates by the Bureau of Health Facilities and Services (BHFS).
- The CHD sets up a technical evaluation committee of at least three members to assess applications using DOH evaluation tools.
- The CHD Director approves or disapproves applications based on committee recommendations.
- Disapproval notices must be sent by registered mail with reasons; approvals are endorsed to BHFS with evaluation reports.
- Applications must be processed within 20 working days; failure requires written justification.
- CON validity is six months; PTC application must be filed within this period, or a new CON is required.
Hospital Inventory and Mapping
- CHDs are mandated to map existing hospitals within their regions and maintain an updated database including bed capacities.
- Maps are updated periodically and submitted annually to BHFS.
- BHFS and CHDs collaborate in sharing data for development and implementation of CON standards.
Travel Time Criterion and Exceptions
- The proposed hospital must generally be at least one hour away from the nearest existing hospital by usual transportation.
- Exceptions allow granting a CON if:
- The proposed hospital offers a higher service level than nearer hospitals; or
- The proposed hospital and a nearby hospital are both Level 3 or 4 but located in different provinces.
Integration with Local Strategic Health Plans
- Proposed hospitals must align with existing Provincial or City Strategic Plans for rationalizing health care based on needs.
- The Strategic Plan must adhere to guidelines under Administrative Order No. 2006-0029.
- Location dictates applicable plan: City Plan for chartered cities, Provincial Plan for municipalities.
- Proponents must provide documentary proof of coordination with the local government regarding these plans.
Computation of Unmet Bed Need
- Determine the projected primary and secondary catchment populations based on hospital level:
- Level 1: Municipality/urban district
- Level 2: Rural district/city
- Level 3: Province (excluding chartered cities within the province)
- Level 4: Region
- Secondary catchment includes contiguous or accessible areas.
- Inventory Hospital Beds count existing general hospital beds and beds from previously approved PTC/CON applicants pending License to Operate.
- Beds from special hospitals, DND hospitals, penitentiary hospitals, and research centers are excluded.
Additional Criteria for Evaluating Concurrent Applications
- When multiple hospital establishment proposals exist for the same area, CHD considers:
- Total capital investment
- Lot area
- Strategic location
- Policies favoring low-income and indigent patients
- Percentage of charity beds
- Certification of compliance awareness with licensing requirements
- CHD may add criteria with justification but must apply them uniformly.
Legal Provisions: Separability, Repealing, and Effectivity
- If parts of this Order are invalidated by a court, unaffected provisions remain valid.
- This Order supersedes previous provisions of Administrative Order No. 2006-0004 and inconsistent issuances.
- It takes effect upon approval and publication in the Official Gazette or newspaper of general circulation.
Summary of Enforcement and Administrative Oversight
- Application evaluation and issuance of CON are closely monitored and regulated by CHD and BHFS.
- Strict adherence to timelines, criteria, and evaluation procedures is mandated.
- Emphasis on supporting rationalized hospital distribution and efficient health delivery systems within regions and provinces.