At its 1363rd Meeting held on 26 August 2021, the UP Board of Regents (BOR) APPROVED the Memorandum of Agreement between the University of the Philippines and the City Government of Davao City for the Establishment of the Davao City Public Hospital in UP Mindanao Campus. The BOR is composed of CHED Chairperson J. Prospero de Vera III as chairperson, UP President Danilo Concepcion as co-chair, Senator Joel Villanueva, chairperson of the Senate Committee on Higher and Technical, and Vocational Education, Cong. Mark Go, the chairperson of the counterpart House committee, Alumni Regent Reynaldo Laserna, Faculty Regent Aimee Lynn Barrion-Dupo, Student Regent Renee Louise Co, Staff Regent Mylah Pedrano, Regent Francis Laurel, Regent Maria Arlissa Aguiluz, and Regent Raul Pagdanganan.    

The approval was granted following the favorable review of the Office of the Vice President for Legal Affairs. The Memorandum of Agreement is summarized, as follows:

UP and the Davao City local government unit ("LGU") intend to work together for the creation of the Davao City Public Hospital. The details of this working relationship are set forth in a memorandum of agreement ("MOA") already signed by the incumbent city mayor, the Hon. Sara Z. Duterte-Carpio.

The Sangguniang Panlungsod of Davao City has authorized Mayor Duterte to sign the said MOA. The Davao City budget officer, Ermelinda F. Gallego, had issued a certification that funds have been set aside for the said MOA, because the Davao City LGU has committed to fund the entire MOA, and the city legal officer has favorably endorsed the said MOA. 

According to the said MOA, the Davao City LGU's obligations include:

1. providing funds to develop, build, construct, implement, and maintain the said public hospital;

2. preparing the design and engineering plans which are subject to UP's approval;

3. developing the site; and

4. providing funds for hospital operations, among others.

UP's obligations include providing the land on which the hospital will be built. UP owns the land upon which the hospital will be erected. The hospital building will initially be owned by the Davao City LGU but after twenty-five years the ownership of the said building will automatically be transferred to UP.  UP will render technical assistance, and—together with the Davao City LGU — will provide policy and operational direction for the hospital.

 The MOA is not a lease but a public service of the Davao City LGU with the assistance of UP. On the part of UP, this MOA is not an income-generating plan. Based on the MOA, the establishment of the subject hospital shall be at no cost to UP.