QC sets auction of St. Luke’s Hospital properties, facilities

St. Lukes Hospital in New Manila, Quezon City, one of the country’s premier hospitals, is set for auction on May 30 for its failure to pay taxes amounting to more than P15 million for its modern medical facilities, a ranking city government official said yesterday.

Dr. Victor Endriga, Quezon City treasurer said that since St. Luke’s Hospital is a non-profit and non-stock foundation, the building and lot are not included in the auction. However, all the properties of the hospital including state of the art facilities, such as scanning machines, x-rays, computers, furniture and vehicles and even hospital beds will be sold in a public bidding. According to the assessment of the city treasurer the hospital has failed to pay taxes for 38 medical facilities and equipment amounting to over P15 million. St. Luke’s spokesperson refused to comment on the issue.

Endriga said the city is determined to increase its tax collection by yearend that’s why it included the hospital for auction.

He said the management of the hospital has made representations with the city government to make the payment staggered but since the auction was already published in major dailies the hospital has to pay their back taxes in full.

Endriga said the building and lot was not included because it’s a non-profit, non-stock organization but it has to pay the taxes of its state of the art medical facilities and other equipment. He said a top official of the hospital will have a meeting with him today to discuss how to resolve the unpaid taxes.

The auction of the hospital is in accordance with the provision of the Local Government Code which empowers local government units to sell in public auction properties of delinquent taxpayers. He said the city government under the administration of former Mayor Ismael Mathay forged an agreement with the hospital that it’s properties are tax free. But Endriga said he has to get the opinion of the Department of Finance on whether the hospital is exempted from paying its taxable properties.