DOH lifts restrictions on setting up new hospitals

MANILA, Philippines - After nine years, the Department of Health (DOH) has lifted an administrative order restricting the establishment of new hospitals.

Health Secretary Enrique Ona said they decided to amend Administrative Order 2004-004, containing the “Guidelines for the Issuance of Certificate of Need to Establish a New Hospital.”

The order was issued on March 16, 2004 to “address the maldistribution of hospital beds resulting in inaccessibility and inadequacy of the hospital delivery system in most regions of the country since most hospital beds are clustered in the urban areas.”

Under the order, Certificate of Need (CONA) must be secured before a new hospital can be constructed.

Ona, however, said that since 2004, “it has been observed that there was no significant increase of hospital beds in rural areas.”

“Private individuals and corporations were hesitant to establish hospitals in most regions where market forces could not guarantee a reasonable return of investment,” he said.

Ona added the CONA requirement had been identified as a “major deterrent” in private sector investment in the hospital sector.

“The DOH deemed it necessary to revise the current requirement of CONA. The private individuals and corporations who will establish new hospitals will not be required anymore to secure CONA,” he said.

Ona, however, said the establishment of new hospitals is still subject to existing rules and regulations on the standards of hospitals and other health facilities.

“The DOH as well as the local government units should instead focus on their respective health initiatives and evaluate the necessity of establishment of hospitals within their area of responsibility to maximize government resources,” he said.