Actually, Lagrangian mechanics has difficulty to handle velocity-dependent forces. A few strategies can be adopted in order to generate damping / dissipative terms like $h \cdot D\phi$.
Time-dependent Lagrangian.
The exponential prefactor you mention in your porst turns out to be the usual "trick" and perhaps the "cleanest" way to produce such a damping term. It is to be noted that the time-dependence of the Lagrangian comes from the fact the energy is not conserved because of the said dissipative term.
This is the only way to generate the term $D\phi \cdot Du$ alone that I am aware of; this term may originate from Lagrangians with different structures, but it will come along with other unwanted terms or prefactors.
Auxiliary variable.
You can introduce a new degree of freedom through an ancillary variable $v$, which will help you to adjust and design the equations of motion. For example, the bivariate Lagrangian
$$
L = Du \cdot Dv - \frac{1}{2}h \cdot (uDv - vDu) - f(x)(u+v) - \frac{1}{2}(u-v) \operatorname{div}h
$$
leads to the following system of differential equations :
$$
\begin{cases}
-\Delta u + h \cdot Du = f \\
-\Delta v - h \cdot Dv = f
\end{cases}
$$
Note that the obtained equations of motion are disentangled already, so that you can deal with the first one while ignoring the other one. Also, the field $h$ needn't derive from a potential $\phi$ in that case.
Let's highlight too that the auxiliary variable $v$ represents the environment of the system described by $u$. Indeed, this Lagrangian is time-independent, thus the energy is conserved in such a way that the energy gain/loss of the system due to the term $h \cdot Du$ is compensated by its environment through $-h \cdot Dv$.
Dissipation function.
Generalized forces involving "velocities" are tackled sometimes with the help of a so-called dissipation function $Q$ and a modified Euler-Lagrange equation, namely
$$
\frac{\partial L}{\partial u} - \operatorname{div}_x\frac{\partial L}{\partial Du} = \operatorname{div}_{Du}Q,
$$
with $L = \frac{1}{2}(Du)^2 - fu$ and $Q = \frac{1}{2}h(Du)^2$ in the present case. Unfortunately, the right-hand side doesn't derive from a variational principle anymore, but it comes from ad hoc corrections.