Office of the Sangguniang Bayan

RESOLUTION NO. 2023- _

A RESOLUTION AUTHORIZING THE MUNICIPAL MAYOR, HON. NOEL PHILIP S. NAGUIT

TO ENTER INTO AND SIGN THE MEMORANDUM OF AGREEMENT (MOA) WITH OTHER
LOCAL GOVERNMENT UNITS IN THE PROVINCE OF PAMPANGA AND ITS AUTHORIZED
REPRESENTATIVES FOR THE PURPOSE OF CREATING AND/OR JOINING THE
PROVINCE-WIDE HEALTH SYSTEM, FURTHER STRENGTHENING THE PRIMARY CARE
PROVIDER NETWORK AND HEALTH CARE PROVIDER NETWORK IN THE COVERED
LOCAL GOVERNMENT UNITS, AND IMPLEMENTING OTHER COMPONENTS FOR THE
PURPOSE OF ACHIEVING FULL INTEGRATION BASED ON EXISTING LAWS AND
REGULATIONS.

WHEREAS, Section 16 of Republic Act No. 7160 otherwise known as the Local Government Code of
1991 (LGC), provides that every local government unit (LGU) shall exercise the powers expressly granted,
those necessarily implied, as well as powers necessary, appropriate, or incidental for its efficient and
effective governance, and those which are essential to the promotion of the general welfare.

WHEREAS, under the same provision, the LGU is tasked to promote the peoples’ health and safety. The
LGU is likewise expected to be capable of responding to problems that include prioritization of health
issues, monitoring of activities relative to healthcare, and adopting innovative and sustainable
interventions for its constituents.

WHEREAS, Republic Act No. 11223, otherwise known as the Universal Health Care Act (UHC Act) seeks
to progressively realize universal health care in the country through a systematic approach and clear
delineation of the roles of key agencies and stakeholders toward better performance in the health
system, and ensure that all Filipinos are guaranteed equitable access to quality and affordable health care
goods and services, and protected against financial risk.

WHEREAS, under Section 17 of the UHC Act, the Department of Health (DOH) is supposed to contract
province-wide and city-wide health systems for the delivery of population-based health services through
Primary Care Provider Networks accessible throughout the health system.

WHEREAS, under Section 19 of the same law, the Department of Health, Department of Interior and
Local Government (DILG), Philippine Health Insurance Corporation (PhilHealth), and the LGUs shall
endeavor to integrate the health systems into province-wide and city-wide health systems, where the
Provincial and City Health Boards oversee and coordinate integration of health services for province-wide
and city-wide health systems, composed of municipal and component city health systems, and city-wide
health systems in highly urbanized and independent component cities, respectively.

WHEREAS, the DOH issued the Implementing Rules and Regulations (IRR) of the UHC Act, and provided
further; that, the province-wide and city-wide health systems shall be a coordinated group of public,
private, or mixed primary care providers, as the foundation of the health care provider network; and the
contracted networks are also supposed to provide individual-based primary to tertiary health care
services with the following components: (i) assurance of member access to all levels of the health care
provider network, including the use of digital technologies for health; (ii) a primary care provider network
that is linked to secondary and tertiary care providers, subject to guidelines issued by the DOH and
PhilHealth; (iii) patient navigation and coordination system; (iv) patient records management system; (v)
provider payment mechanisms; (vi) networks exhibiting proof of legal personality; and (vii) mechanism of
pooled fund management in the network.

WHEREAS, in the IRR, the DILG and DOH shall facilitate the integration of local health systems into
province-wide and city-wide health systems through a mechanism of cooperative undertakings among the
LGUs to ensure the effective and efficient delivery of health services provided under Section 33 of the
LGC.

WHEREAS, the IRR also provides that, for purposes of Provincial integration, the municipalities and
component cities shall endeavor to integrate their Municipal Health Offices, Component City Health
Offices, Municipal Hospitals, Component City Hospitals, and LGU-managed health care providers, with the
Provincial Health Office, Provincial Hospital(s), and District Hospitals to constitute the province-wide
health system. The municipal and component city shall retain their existing functions over their respective
health facilities and personnel under the LGC. Provided, that the Provincial Health Board shall exercise
administrative and technical supervision over health facilities and services, health personnel, and all other
health resources within their territorial jurisdiction. Provided, further, that the concerned LGU may opt to

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transfer the control of such health resources and services to the province-wide health system through a
mechanism of cooperative undertakings provided under Section 33 of the LGC. The province-wide health
system, through the Provincial Health Office, shall be responsible for the delivery of the promotive,
preventive, curative, rehabilitative, and palliative components of health care within the province. The
province-wide health system shall be linked to at least one (1) apex or end-referral hospital.

WHEREAS, in addition to the existing composition in accordance with the LGC, municipalities and
component cities included in the province-wide health system shall be entitled to a representative in the
Provincial Health Board. As applicable, indigenous cultural communities or indigenous peoples, in
accordance with Republic Act No. 8371, otherwise known as the Indigenous Peoples’ Rights Act of 1997,
shall also be represented in the Provincial and City Health Boards. The Provincial and City Health Boards,
in addition to their existing functions and in accordance with the LGC, shall: (i) set the overall health
policy directions and strategic thrusts including the development and implementation of the integrated
strategic and investment plans of the province-wide and city-wide health system; (ii) oversee and
coordinate the integration and delivery of health services across the health care continuum for province-
wide and city-wide health systems; (iii) manage the Special Health Fund (SHF); and (iv) exercise
administrative and technical supervision over health facilities and health human resources within their
respective territorial jurisdiction. The Provincial and City Health Board shall create its own management
support unit to assist its operations including the management of the SHF.

WHEREAS, based on the IRR, the province-wide and city-wide health systems shall pool and manage all
resources intended for health services through a SHF. Sources for the SHF shall include financial grants
and subsidies from national government agencies such as the DOH in accordance with the rules on
Incentives for Improving Competitiveness of the Public Health Service Delivery System under Section 22
of the IRR; income from PhilHealth payments in accordance with Section 21 of the IRR; and other
sources such as, but not limited to, financial grants and donations from Non-Government Organizations,
Faith-Based Organizations, and Official Development Assistance. Provided, that the concerned LGUs may
opt to transfer their local budget intended for health to the SHF through a mechanism of cooperative
undertakings as provided under Section 33 of the LGC. As determined and approved by the Provincial or
City Health Board, the SHF shall be allocated for: (i) population-based and individual-based health
services; (ii) capital investment such as, but not limited to, infrastructure, equipment, and information
technology; (iii) health system operating costs; (iv) remuneration of additional health workers; and (v)
incentives for all health workers in accordance with Republic Act No 7305, otherwise known as the Magna
Carta for Public Health Workers, Republic Act No. 7883, otherwise known as the Barangay Health
Workers’ Benefits and Incentives Act, Presidential Decree No. 1569, Strengthening Barangay Nutrition
Program), Republic Act No. 11148, otherwise known as the Kalusugan at Nutrisyon ng Mag-Nanay Act,
and other relevant laws. The allocation of the financial grants from DOH and income from PhilHealth
payments shall be based on the contractual obligation of the Provincial and City Health Boards with the
DOH and PhilHealth for population-based services and individual-based services, respectively; Local
Investment Plan for Health; and SHF guidelines. The Provincial and City Health Boards shall assume full
responsibility for the management of the SHF. The DOH and PhilHealth shall require the creation of a SHF
for contracting city-wide and province-wide health system; Provided, That LGUs shall appropriate,
through an ordinance, counterpart funding to finance health programs based on the local investment plan
for health. Provided, further, that the LGUs that opted to transfer the control of health resources to the
province-wide health system shall transfer the funds intended for health to the SHF and shall be entitled
to additional financial and non-financial incentives, given that these incentives shall be solely allocated for
health-related services. Provided, finally, that upon full financial integration, health expenditures of
participating LGUs that are in accordance with the IRR shall be chargeable to the SHF. The DOH and
PhilHealth shall establish and maintain a SHF utilization tracking system to allow real-time collection,
consolidation, and analysis of data on the use of such fund. Required data for this system shall be
considered as health and health-related data as described in the IRR. For this purpose, the DOH and
PhilHealth, in consultation with the Department of Budget and Management (DBM), DILG, Department of
Finance (DOF), Commission on Audit (COA) and the LGUs, shall issue guidelines that specify the
allocation and utilization of the SHF.

WHEREAS, to ensure that these objectives may be realized considering the current developments
pertaining to the mandates of the UHC Act and related laws or rules, the LGU shall continuously develop
the Primary Care Provider Network (PCPN), Health Care Provider Network (HCPN), and to integrate the
necessary components thereof as required by law and the rules.

WHEREAS, the LGU will form a collaborative partnership with other LGUs, key organizations and
stakeholders from the public sector and private sector, National Government Agencies, and other entities
for local health systems integration.

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WHEREAS, other pertinent information relative to the implementation of the PCPN, development of the
HCPN, and local health systems integration shall be stipulated in the draft MOA, ordinances, or other
rules that may be developed pursuant to existing laws and regulations presented to this Sanggunian.

NOW, THEREFORE:

BE IT RESOLVED by the Sangguniang _ of the _ to pass a RESOLUTION AUTHORIZING THE

MUNICIPAL MAYOR, HON. NOEL PHILIP S. NAGUIT TO ENTER INTO AND SIGN THE MEMORANDUM OF
AGREEMENT (MOA) WITH OTHER LOCAL GOVERNMENT UNITS IN THE PROVINCE OF PAMPANGA AND
ITS AUTHORIZED REPRESENTATIVES FOR THE PURPOSE OF CREATING AND/OR JOINING THE
PROVINCE-WIDE HEALTH SYSTEM, FURTHER STRENGTHENING THE PRIMARY CARE PROVIDER
NETWORK AND HEALTH CARE PROVIDER NETWORK IN THE COVERED LOCAL GOVERNMENT UNITS,
AND IMPLEMENTING OTHER COMPONENTS FOR THE PURPOSE OF ACHIEVING FULL INTEGRATION
BASED ON EXISTING LAWS AND REGULATIONS.

RESOLVED, FURTHER, that copies of this resolution be furnished to the City/Municipal Health Office,
Department of Health – _ Center for Health Development, and other agencies and stakeholders
mentioned herein.

ADOPTED and APPROVED this _ day of _ 2022, on motion of Hon. Councilor.

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Councilor Councilor Councilor

Councilor Councilor Councilor

Councilor Councilor Councilor

I hereby certify the correctness of the foregoing Resolution.

Name
Secretary to the Sanggunian

ATTESTED BY:

Name
Presiding Officer

APPROVED BY:

[Name]
City Mayor