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PRESIDENTIAL DECREE NO. 1411
PRESIDENTIAL DECREE NO. 1411 -
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
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WHEREAS,
the GSIS General Hospital was established by the Government Service
Insurance System in 1969 as part of its services to its members;chanroblesvirtualawlibrary
WHEREAS, it is imperative for the Government Service Insurance System
to keep its funds actuarially solvent by confining its investments to
those that carry a reasonable assurance of entering a sufficient rate
of return over the long-range;chanroblesvirtualawlibrary
WHEREAS, the GSIS Hospital was envisioned to support, improve and
ensure an effective health care delivery system through modern and
effective hospital management with the employment of highly trained
hospital administrators, specialists, professionals and other health
personnel; chanroblesvirtualawlibrary
WHEREAS, preserving actuarial solvency of the GSIS funds should take
priority over the direct provision and delivery of medical services, a
task more appropriately performed by other agencies;chanroblesvirtualawlibrary
WHEREAS, there is a basic conflict between them of the GSIS Hospital to
provide high quality hospital services on the one hand, and to limit
its charges and fees to those within the reach of the low-income groups
on the other hand;chanroblesvirtualawlibrary
WHEREAS, the cost of providing and delivering high quality medical care
cannot be financed and sustained on a self-liquidating basis by the
low-levels of fees and charges within the paying capacity of the
low-income groups;chanroblesvirtualawlibrary
WHEREAS, one possible but unacceptable way of making the GSIS Hospital
self-sustaining and self-liquidating is to increase its fees and
charges to levels that will only convert it into a hospital for the
relatively higher-income groups; chanroblesvirtualawlibrary
WHEREAS, on the other hand, another possible but unacceptable solution
to the conflict is to reduce the cost of its medical services by
reducing their quality to undesirably low levels;chanroblesvirtualawlibrary
WHEREAS, the provisions of high quality medical services at relatively
low fees and charges can only be made possible by subsidizing the
operations of the GSIS Hospital;chanroblesvirtualawlibrary
WHEREAS, the provision of subsidies is the proper function not of the
GSIS but of the national government, since subsidizing an inherently
unprofitable operation is inconsistent with the over-riding need to
preserve the actuarial solvency of the GSIS funds; chanroblesvirtualawlibrary
WHEREAS, the GSIS Hospital has been incurring losses since its
establishment, for the reason cited above, and is expected to continue
incurring losses in the future if it is to continue incurring medical
services of acceptable quality at cost within the reach of the
low-income groups;chanroblesvirtualawlibrary
WHEREAS, in view of the above-mentioned factors, it has become a matter
of sound national policy to transfer the ownership of and the operating
responsibilities over the GSIS Hospital from the GOVERNMENT SERVICE
INSURANCE SYSTEM to the National Government;chanroblesvirtualawlibrary
WHEREAS, the Department of Health, the government agency charged with
the responsibility of effective health care delivery to our people will
be in the best position to manage and operate the GSIS Hospital; chanroblesvirtualawlibrary
WHEREAS, there is an imperative necessity to have additional service,
research as well as teaching and training hospitals under the
Department of Health; and
WHEREAS, the GSIS Hospital was established with the trust fund of the
GSIS members and, accordingly, GSIS must be reimbursed its expenses so
as not to jeopardize its actuarial solvency and its financial
capabilities to meet GSIS obligations to its members;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the power vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. The GSIS Hospital, Inc. is hereby
dissolved and abolished and its properties, records, assets,
liabilities, rights and choses in action, and shares of stock of the
GSIS Hospital, Inc. are hereby transferred to, and placed under the
jurisdiction control, supervision and operation of, the Department of
Health and shall, henceforth, be known as the "Ospital Ng Bagong
Lipunan". chanroblesvirtualawlibrary
Section 2. The National Government shall reimburse
the Government Service Insurance System, the owner, the sum of Seventy
Million Pesos (P7,000,000.00) upon the effectivity of this Decree,
either in cash or government bonds or real estate properties of the
national government in accordance with the appraisal of the GSIS.
Section 3. Board of Governors. — The Ospital Ng
Bagong Lipunan shall be governed by a Board of Governors consisting of
seven (7) members, with the Secretary of Health as Chairman. The
Secretary of Health shall appoint the other six (6) members of the
board whose term shall be for a period of six (6) years without
prejudice to reappointment. In case of any vacancy in the Board, the
same shall be filled by the Secretary of Health for an unexpired term.
No person shall be appointed governor unless he is a natural born
citizens of the Philippines, not less than 35 years of age, of
established integrity and has attained proficiency, expertise and
recognized competence in one or more of the following: hospital
administration, government administration, medicine, law and finance.
They shall receive a per diem of five hundred pesos for every meeting
and representation and transportation expenses not exceeding two
thousand pesos a month.
Section 4. The Secretary of Health, through the
Board, is hereby empowered to review and screen all officers and
employees of the hospital. All incumbents who do not satisfactorily
meet the qualification requirements of their respective positions and
those who have not rendered satisfactory service to the hospital shall
be removed from office. Any of the officers and employees who are
removed from office due to the aforementioned reasons shall be paid the
money value of his accumulated vacation and sick leave and such
retirement gratuity as may due him under any existing retirement law
shall be paid one month salary for every year of service but not
exceeding one year salary. chanroblesvirtualawlibrary
Section 5. Reorganization. — To carry out the
objectives of this Decree and other laws implemented by the Department
of Health, the Secretary of Health, through the Board, and in
coordination with the Budget Commission, shall have power and authority
to reorganize the hospital by creating, merging, consolidating, or
abolishing operating units and positions, by hiring, appointing,
promoting and separating personnel, and by way any all acts tending to
promote effective service as well as economical management and
administration of the Ospital Ng Bagong Lipunan.
Section 6. There is hereby appropriated the amount of
Seventy Million Pesos (P70,000,000.00) to pay the Government Service
Insurance System and the sum of Fifteen Million Pesos (P15,000,000.00)
out of any funds in the National Treasury not otherwise appropriated
for the operating expenses of the Hospital and such sum to cover the
money value of accumulated vacation and sick leave and gratuity
benefits, which amounts shall immediately be released by the Budget
Commission.
Section 7. In the event that any section, paragraphs,
sentence, clauses or words of this Decree is declared invalid for any
reason, other provisions thereof shall not be affected thereby.
Section 8. Repealing Clause. — All laws, decrees,
orders, rules and regulations which are inconsistent with this Decree
are hereby repealed or amended accordingly.
Section 9. Effectivity Clause. — This Decree shall
take effect immediately.
Done in the City of Manila,
this 9th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
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