[1][2] The Isabela Provincial Hospital was created by virtue of an act of the National Assembly of the Philippines in 1939, thereby giving way for the construction of the main building in 1940, which was not completed due to the outbreak of the Second World War in 1941.

On 15 August 1945, Dr. Jose Valdez, who was the head of the Philippine Civilian Affairs unit (PCAU), turned over the hospital with all supplies, equipment, medical and nursing staff and other personnel who were providing basic medical and surgical supplies and ward operating and dispensary equipment to the government, which operated the hospital under the Bureau of Health.

Because of budgetary constraints, personnel were reduced leaving a skeletal force to continue its operation with Dr. Rodolfo B. Silvestre as acting Chief of Hospital until 11 March 1946.

With the presence of an operating room and the availability of ample medical, surgical supplies and simple equipment, it could already meet the demand for common procedure.

Under the administration of Dr. Maddela, additional improvements were achieved such as construction of ornamental lighting fixtures around the hospital compound and repair of Doctor's quarters.