Title
Anti-Hospital Deposit Law Strengthening Act
Law
Republic Act No. 10932
Decision Date
Aug 3, 2017
Republic Act No. 10932, the Anti-Hospital Deposit Law, strengthens penalties for hospitals that refuse initial medical treatment, establishes liability for denial of admission due to deposit demands, and creates oversight and reimbursement mechanisms for poor and indigent patients.

Definitions for emergency and care

  • Section 2 defines “Emergency” as a condition where, based on objective findings of a prudent medical officer on duty for the day, there is immediate danger and delay in initial support and treatment may cause loss of life or permanent disability; it likewise covers permanent injury or loss of the unborn child for a pregnant woman, or a result in noninstitutional delivery.
  • Section 2 defines “Serious case” as a condition characterized by gravity or danger where, based on objective findings of a prudent medical officer on duty for the day, leaving the patient unattended may cause loss of life or permanent disability; it likewise covers permanent injury or loss of the unborn child for a pregnant woman.
  • Section 2 defines “Basic emergency care” as the response to a situation urgently requiring medical care and attention, including procedures required for initial diagnosis and use of equipment and supplies sufficiently addressing the emergency situation, considering the patient’s welfare.
  • Section 2 states “Basic emergency care” includes necessary medical procedures and treatment administered to a woman in active labor to ensure the safe delivery of the newborn.
  • Section 2 defines “Non institutional delivery” as delivery of a newborn while in transit, outside a health facility, after an initial consultation was done with a health facility.

Patient treatment, transfer, and posting

  • Section 3 provides that after administering medical treatment and support, the hospital or medical clinic may cause transfer of the patient to an appropriate hospital consistent with the needs of the patient, especially for poor or indigent patients.
  • Section 3 requires the LGU where the hospital or medical clinic is located to allow free use of its emergency vehicle for emergency transfer when no ambulance is available.
  • Section 3 requires the hospital or medical clinic to provide a staff nurse with advanced cardiovascular life support (ACLS) certification or its equivalent to accompany the patient in the emergency vehicle.
  • Section 3 requires all hospitals to post at their entrance a notice indicating the classification level of the hospital as licensed by the Department of Health (DOH) and the list of medical services the hospital is authorized to perform.

Criminal and enhanced penalties

  • Section 4 provides that any official, medical practitioner, or employee who violates the Act is punished, upon conviction by final judgment, by imprisonment of not less than six (6) months and one (1) day but not more than two (2) years and four (4) months, or a fine of not less than PHP 100,000.00 but not more than PHP 300,000.00, or both, at the discretion of the court.
  • Section 4 increases punishment when the violation was committed pursuant to an established policy of the hospital or clinic or upon instruction of its management: the director or officer responsible for formulation and implementation faces imprisonment of four (4) to six (6) years, or a fine of not less than PHP 500,000.00 but not more than PHP 1,000,000.00, or both, at the discretion of the court, without prejudice to damages awarded to the patient-complainant.
  • Section 4 provides that upon three (3) repeated violations committed pursuant to an established policy or upon instruction of management, the health facility’s license to operate is revoked by the DOH.
  • Section 4 makes the president, chairman, board of directors, or trustees, and other officers of the health facility solidarily liable for damages that may be awarded by the court to the patient-complainant.

Liability presumption and oversight board

  • Section 5 establishes a presumption of liability against the hospital, medical clinic, and the official, medical practitioner, or employee involved when death, permanent disability, serious impairment of the patient-complainant’s health condition occurs, or in the case of a pregnant woman, permanent injury or loss of the unborn child occurs, proceeding from the denial of admission to a health facility pursuant to a policy or practice of demanding deposits or advance payments.
  • Section 6 requires complaints for violations filed initially with the Health Facilities Oversight Board under the Health Facilities and Services Regulatory Bureau (HFSRB) of the DOH.
  • Section 6 provides the Health Facilities Oversight Board composition: a DOH representative with minimum rank of director as Chair, a representative from PhilHealth, a representative from the Philippine Medical Association (PMA), a representative from private health institutions, and three (3) representatives from non-government organizations (NGOs) advocating for patient’s rights and public health, including one licensed physician.
  • Section 6 directs the Board to investigate the patient’s claim and, after adjudication, impose administrative sanctions under the Act, including revocation of the health facility’s license.
  • Section 6 directs the Board, based on its findings, to facilitate filing of the criminal case in the proper courts, while preserving the patient-complainant’s right to directly institute criminal proceedings in court.

Coverage: PhilHealth and PCSO support

  • Section 7 requires PhilHealth to reimburse the cost of basic emergency care and transportation services incurred by the hospital or medical clinic for emergency medical services provided to poor and indigent patients.
  • Section 7 mandates the Philippine Charity Sweepstakes Office (PCSO) to provide medical assistance for basic emergency care needs of the poor and marginalized groups.

Tax deductions for uncompensated costs

  • Section 8 provides that other expenses incurred by the hospital or medical clinic in providing basic emergency care to poor and indigent patients that are not reimbursed by PhilHealth are tax deductible.

Implementing rules, separability, repeal, effectivity

  • Section 9 requires the DOH, in coordination with PhilHealth and the Bureau of Internal Revenue (BIR), and in consultation with NGOs advocating for patients’ rights and public health, to promulgate implementing rules and regulations to carry out the Act within ninety (90) days from effectivity.
  • Section 7 establishes a separability rule: if any part or provision is declared unconstitutional or invalid, other parts not affected continue in full force and effect.
  • Section 8 provides a repealing rule: laws, decrees, executive orders, statutes, provisions, and other issuances—or parts thereof—inconsistent with the Act are repealed or modified accordingly.
  • Section 9 provides effectivity: the Act takes effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) newspapers of general circulation.
  • Republic Act No. 10932 (approved August 03, 2017) amends Batas Pambansa Blg. 702 (“An Act Prohibiting the Demand of Deposits or Advance Payments for the Confinement or Treatment of Patients in Hospitals and Medical Clinics in Certain Cases”), as amended by Republic Act No. 8344, by increasing penalties and strengthening the anti-hospital deposit rule in emergency or serious cases.
  • Republic Act No. 10932 took legislative form through consolidation of Senate Bill No. 1353 and House Bill No. 5159, and was finally passed by the Senate and House of Representatives on May 24, 2017.

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