The Ormoc City government has ordered a private maternity hospital that has served the city’s mothers and children for nearly a century to vacate the property it occupies within five days, citing alleged violations of its lease agreement.
In a letter dated 7 January addressed to Dr. Marilee Solaña, chair of the board of trustees of Ormoc Maternity and Children’s Hospital (OMCH), City Administrator Vincent Emnas warned that legal action would be taken if the hospital fails to comply with the order.
Emnas said the hospital breached provisions of its memorandum of agreement with the city government by failing to implement “actual charitable and indigency programs” for patients.
Under the agreement, the city allowed the hospital to use government-owned property for a monthly lease of P1,000 over 25 years, on the condition that it would continue serving indigent mothers and children in Ormoc.
Emnas said the hospital failed to present documented criteria for determining indigency, a verified list of beneficiaries, and proof of hospital-funded exemptions for indigent patients.
He added that the hospital’s reliance on PhilHealth benefits and the No Balance Billing policy does not qualify as charitable programs under the agreement, as these are statutory requirements.
Ormoc City Mayor Lucy Torres-Gomez said that instead of operating as a civic and charitable institution, the hospital functioned like a private business.
“What effectively happened was a hospital using the space, almost for free, yet it was run like a personal business, forgetting that such a low rental came with the responsibility of serving the community by offering certain services for free to indigent Ormocanons,” she said.
The mayor added that reports submitted by the hospital showed discrepancies between its actual income and the income it declared for tax purposes. She also said the hospital subleased the property for P10,000 a month without informing the city government.
“The City of Ormoc will not tolerate such abuses by a private institution that was given a very generous lease agreement by the LGU - in exchange for serving the indigent Ormocanon mothers and children,” she added.
The Ormoc Maternity and Children’s Hospital was established in 1928 as the Ormoc Puericulture Center and Maternity House.