The Ormoc City government has officially ordered the permanent closure of the historic Ormoc Maternity and Children's Hospital, ending its 97-year operation. Mayor Lucy Torres Gomez announced the decisive action on Monday, January 12, 2026, citing multiple and serious violations of the institution's memorandum of agreement with the local government.
Breach of a Century-Old Trust
At the heart of the closure is the hospital's fundamental failure to uphold its core mission. The facility was leased a city-owned space for a nominal fee of just PHP 1,000 per month, under the explicit condition that it operate as a civic and charitable institution serving indigent mothers and children of Ormoc.
"However, what effectively happened was a hospital using the space, almost for free, yet it was run like a personal business," Mayor Gomez stated. She emphasized that the heavily subsidized rental came with the sacred responsibility of providing free or subsidized medical services to the city's poorest residents, an obligation the hospital allegedly forgot.
Pattern of Non-Compliance and Financial Discrepancies
The city's investigation uncovered a pattern of non-transparency and non-compliance. Officials flagged the hospital's repeated failure to submit required reports that were crucial for oversight. These reports were meant to detail:
- How indigent patients were identified.
- What charitable services were provided beyond PhilHealth and other government assistance.
- Other data necessary to assess the hospital's adherence to its charitable mandate.
Despite numerous requests following complaints from patients and their families, the hospital submitted documents deemed unrelated and insufficient by city officials. A deeper review raised further red flags, revealing discrepancies between the hospital's declared income and the figures it reported for tax purposes to the city government.
Unauthorized Sublease Seals Fate
The most egregious violation, according to the city, was the discovery that the hospital management had subleased the city-owned property to another party. This sublease was arranged for PHP 10,000 per month without the knowledge or consent of the Ormoc local government, an act described as a clear and direct breach of the lease agreement.
"The city of Ormoc will not tolerate such abuses by a private institution that was given a very generous lease agreement in exchange for serving indigent mothers and children," Mayor Gomez asserted. She stressed that the closure was a necessary step to protect public interest and enforce strict accountability.
The management of the nearly century-old Ormoc Maternity and Children's Hospital has not yet issued a public response to the closure order. The action underscores the city government's stringent stance on ensuring that agreements for public benefit are honored in full.
