Title
Amendment to CON Guidelines for New Hospitals
Law
Doh Administrative Order No. 2006-0004-a
Decision Date
Jan 15, 2007
A Philippine law aims to regulate the establishment of new hospitals to ensure equitable distribution of healthcare resources and access to healthcare services for all Filipinos, by providing guidelines and criteria for the issuance of a Certificate of Need.

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.

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