JAN.

29, 2012 DATE

NR # 2663
REF. NO.

Solons seek tax incentive for private doctors & hospitals rendering charitable services
House members are prodding the government to grant a tax incentive to private doctors and hospitals rendering free medical and hospital services to the poor in recognition of their laudable act of generosity. As jointly proposed by Reps. Eleandro Jesus Madrona (Lone District, Romblon) and Hermilando Mandanas (2nd District, Batangas), the tax incentive would allow doctors and hospitals to deduct from their gross income the amount of the medical or hospital service rendered for charitable purposes or the equivalent of 10 percent of the total gross income from the services rendered, whichever is lower. Madrona said while the government strives to make medical and hospital services available to the poor through public hospitals, medical, puericulture, day-care and maternal lying-in centers and through the PhilHealth system, the assistance remains limited and insufficient to cover the ever increasing population of indigents in the country. The assistance from the medical private sector is a much needed and timely intervention to beef up, if not sustain the governments efforts to cater to the health needs of its impoverished citizenry, said Madrona, a vice chairman of the Committee on Transportation. Mandanas, former chairman of the Committee on Ways and Means, said in recognition of the laudable act of generosity of these private doctors and hospitals helping the poor, it is but incumbent on the part of the government to grant them tax incentives. Mandanas said it is the declared policy of the State to recognize and promote the state of well being of every human person and guarantee every citizens right to health care, particularly those who cannot afford the services of private health service providers. In addition, he said the State shall guarantee accessibility of health care by the poor and ensure that every person who cannot afford the services of a private health care provider is assisted by a competent private health care provider preferably of his or her own choice, if upon determination, it appears that the poor cannot afford the services of the private health care provider and that the services of a private health care provider are necessary to ensure the health of the poor. The proposal of Madrona and Mandanas is embodied in House Bill 5638 or the proposed Medical and Hospital Charitable Services Act of 2011. It provides the term medical and hospital services to be rendered by doctors and hospitals refers to any activity or activities, which are defined under the Medical Act of 1995 and Republic Act 4226

JAN. 29, 2012 DATE

NR # 2663
REF. NO.

which shall include among others diagnosis, treatment, confinement and similar medical and hospital services. The word charitable shall mean medical or hospital service free of charge including dispensing of medicines or hospital supplies which shall redound to the benefit of the person in need of such medical or hospital services based on the bill. Section 4 of the bill provides that to avail of the benefits and privileges, doctors who had rendered charitable medical and hospital services shall secure a certification from the Department of Health (DOH) and the Philippine Medical Association (PMA). In case of hospitals, they shall secure certification from the Philippine Hospital Association (PHA) or the Private Hospitals Association of the Philippines (PHAP) about the medical and hospital services they rendered for the poor. At the start of the fiscal year, these doctors and hospitals shall be required to register with the Bureau of Internal Revenue and thereafter annually renew such registration if they intend to continuously provide charitable or hospital services based on the bill. Section 5 provides that a doctor or hospital rendering actual charitable medical and hospital services shall be entitled to deduct from the gross income the amount of the medical service rendered by the doctor or the amount of the hospital service rendered for charitable purposes, or the equivalent of 10 percent of the total gross income from medical or hospital services rendered by the doctor or hospital respectively, whichever is lower. (30) rbb