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The functions and operations of the DOH was directed to become consistent with the provisions of Administrative Code 1987 and RA 7160 through Executive Order 102. The Health Sector Reform Agenda of the Philippines, 1999-2004 was launched. The reforms are: provide fiscal autonomy to government hospitals; secure funding for priority health programs; promote the development of local health systems and ensure its effective performance; strengthen the capacities of health regulatory agencies and expand coverage of the National Health Insurance Programs.

National Objectives for Health 1999-2004 was launched. This states the Philippines objectives for the eradication and control of infectious diseases commonly affecting our people, major chronic illnesses and injuries that compromise lives of the productive sector. It encourages promotion of healthy lifestyle and health-seeking behaviors to prevent or control certain debilitating illness and life-threatening diseases Creation of the National Health Planning Committee (NHPC) and the establishment of Inter-local Health Zones (ILHZs) throughout the country through E.O. 205.

This promotes, encourages and ensures the full and integration of delivery and development of health care services throughout the country. It provides for the participation, involvement and collaboration of all local government units with major stakeholders namely Department of Health and Department of Interior and Local Government.

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