WHEREAS, the 1987 Constitution provides that the State shall promote and protect the general well-being of the citizenry;

WHEREAS, R.A. 7160, otherwise known as the 1991 Local Government Code mandated for the devolution of the delivery of the health services and facilities as one of the basic functions and responsibilities of all the local government units or LGUs at all levels;

WHEREAS, Sec. 33 of R.A. 7160, further provides that LGUs may "group themselves, consolidate their efforts and services and resources for purposes commonly beneficial to them where they may, upon approval of the sanggunian concerned, xxx under such terms and conditions as may be agreed upon by the participating LGUs through a Memorandum of Agreement";

WHEREAS, through the initiative of the League of Provinces of the Philippines (LPP), in coordination with the Department of Health (DOH) and the Department of the Interior and Local Government (DILG), a "Health Covenant '99" was forged among the above-mentioned stakeholders and participants of the "Governors' Workshop on Health: Partnership for Devolution", held last March 9-10, 1999 at Pasay City, with the main objective of achieving an integrated health care delivery system at the national and local levels by the year 2000, and thereafter;

WHEREAS, based on the Health Covenant, and as agreed upon by the participants of the said Workshop, foremost of the major recommendations specified therein to meet the objectives set forth were as follows: (1) the creation of a National Health Planning Committee (NHPC) to oversee and ensure adherence by all LGUs and concerned stakeholders to appropriate guiding principles and coordinated planning and implementation of a comprehensive and integrated National and Local Health Plans as well as priority programs and projects by all LGUs through their local health boards (LHBs); (2) the establishment of "Inter-Local Health Zones" throughout the country, through Inter-Local Government Cooperation defining their mechanisms, governing structures, powers and functions, and funds and resources, and (3) the reactivation and strengthening by the LGUs of their respective Local Health Boards (LHBs).

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue vested in me by the Constitution and the laws, do hereby order:

Section 1. Declaration of Policy. It is the policy of the State that full and integrated delivery and development of health care services throughout the country must be promoted, encouraged, and ensured, especially for the poor and marginalized sectors of society. Towards this end, the State shall provide for the participation and active involvement and collaboration of all local government units (LGUs) together with the major stakeholders, particularly with the Department of Health (DOH) and the Department of Interior and Local Government (DILG) with the main objective of achieving an integrated health care delivery system at the national and local levels by the year 2000 and thereafter.

Section 2. Organization of the National Health Planning Committee (NHPC). The National Health Planning Committee, herein referred to as NHPC, is hereby constituted to serve as the overall coordinating body to oversee and ensure adherence by all LGUs and concerned stakeholders to appropriate guiding principles and coordinated planning and implementation of a comprehensive and integrated National and Local Health Plans and priority programs and projects by all LGUs through their local health boards (LHBs).

Section 3. NHPC Composition. Within one (1) month after the approval of this Executive Order, the NHPC shall be convened and composed of the following:

1.	Secretary of the DOH	Chairman
2.	Secretary of DILG	Co-Chairman
3.	National President of the League of Provinces	Vice-Chairman
4.	Executive Secretary	Ex-Officio Member
5.	Chairman of Senate Committee on Health	Ex-Officio Member
6.	Chairman of House Committee on Health	Ex-Officio Member
7.	Secretary of the DBM	Member
8.	Two (2) representatives from the private sector	Members

A Secretariat shall be organized to provide support to the NHPC. The DOH Secretary shall designate his Undersecretary to act as head of the NHPC Secretariat. The members of the Secretariat shall be composed of the following: Official representatives from the DOH, DILG, Union of Local Authorities of the Philippines (ULAP), League of Cities, League of Municipalities and Liga ng mga Barangay.

Section 4. NHPC Functions. Aside from the main responsibilities of the NHPC mentioned under Sec. 3 hereof, it is likewise expected to perform the following specific functions:

1. Ensure and sustain the agreements reached during the "Governors' Workshop for Health" held last March 9-10, 1999, especially the recommendations specified under the "Health Covenant '99", as well as in the workshop outputs, which are both made an integral part of this Executive Order;
   
   
2. Promote policies, programs and projects on health to enhance local autonomy in planning and implementing an integrated health care delivery system and an integral health plan at the national and local levels;
   
   
3. Formulate a partnership mechanism among all the LGUs, concerned National Government Agencies (NGAs), through the DOH and DILG, and the private sector, NGOs and civic groups to support the local health service delivery systems;
   
   
4. Ensure that all LGUs shall prioritize the reactivation and strengthening of the LHBs as an initial move in making decentralized health services work;
   
   
5. Recommend specific and adequate resources both in cash and in kind to be allotted to the LGUs by the concerned NGAs (i.e., DOH and DILG) to enhance local government capability, responsibility and accountability relative to the delivery of basic health services prior to the commencement of the annual planning calendar and budget cycle at the national, provincial and city levels, subject to the guidelines and criteria to be formulated by the NHPC in consultation with the LGUs, through the LPP and ULAP, and to ensure its inclusion in the preparation of the Annual General Appropriations Act (GAA) budget of DOH and DILG beginning CY 2000 and every succeeding fiscal year for proper implementation of the consolidated National and Local Health Plans;
   
   
6. Act as the over-all coordinating body for all local health boards (LHB) and ensure the organization and/or reactivation of all LHBs at every local government level as well as their active involvement in the policy formulation and program planning and implementation of health services;
   
   
7. Formulate the annual planning guides, standards and format that shall serve as the integrating principles for ensuring that there will be functional merger of the annual priority health programs and projects of the national and local governments that shall be carried out at the provinces with their component cities and municipalities and highly urbanized cities (HUCs). These Provincial/HUC Health Plans shall be submitted to the NHPC, copy furnished the Office of the President not later than forty-five (45) days after the signing of this Order;
   
   
8. Recommend to the President an initiative scheme package for outstanding LGUs with the best local health plan implemented at their respective LGUs, including a health insurance scheme particularly to the 100 poorest families in every province and city;
   
   
9. Submit a semi-annual and year-end report to the Office of the President; and
   
   
10. Perform other functions that may be designated by the President or as may be deemed necessary by the NHPC Chairman.
    

Section 5. Establishment of the Inter-Local Health Zones. For the effective delivery of integrated health care and ensure smooth coordination between and among cities, municipalities and barangays, and pursuant to Section 33 of R.A. 7160, there are hereby, established by the DOH and DILG. These Inter-Local Health Zones comprise a well-defined population (by level of governance) in a rural or urban area, and all institutions and sectors whose activities contribute to improved health care delivery in that zone. The composition functions and required resources of these ILHZs shall be approved by the NHPC upon endorsement by the Provincial Governor or City Mayor.

Section 6. Integrated Provincial/City Health Plan. In accordance with the guidelines promulgated by the NHPC, every municipality, component city and highly urbanized city through their respective local health boards must develop their own health plan which shall be integrated into an Inter-Zonal Health Plan incorporating two (2) levels of health care, namely: referral (district) hospital and identified set of main health centers/barangay health stations with catchment populations. These Inter-Zonal Health Plans shall be aggregated into a Provincial/City Health Plan taking into account the actual needs and available resources of their LGUs in relation to the national health objectives. All Provincial/City Health Plans shall be submitted to the NHPC on the date prescribed by the committee.

Section 7. Funding. All Governors, City and Municipal Mayors, through their respective Sanggunians, shall provide specific budgetary appropriations under their approved local development plan for the proper implementation of their respective health plans. As a counterpart support from the National Government, the DOH and other concerned NGAs shall likewise allocate and devolve funds to augment local funds intended for this purpose, as provided for under Article 31 of the IRR of R.A. 7160, subject to the guidelines and criteria to be set by the NHPC. The DOH shall set aside a separate fund for the technical and administrative operations of the NHPC Secretariat beginning CY 1999 and thereafter.

Section 8. Inter-Agency Coordination. All concerned Departments and other attached agencies, LGUs, GOCCs, and other instrumentalities of the government are hereby directed to cooperate and give their full support to the NHPC, ILHZS and LHBs to ensure the effective performance of their functions.

Section 9. Effectivity. This Order shall take effect immediately.

DONE in the city of Manila, this 31st day of January 2000.


By the President:

(Sgd.) RONALDO B. ZAMORA
Executive Secretary