Uganda Government Pledges Support for Lacor Hospital and Launches Shs58bn Health Project

The Ugandan government has pledged to review its financial support to St Mary’s Hospital Lacor in Gulu and consider tax exemptions for the institution. Health Minister Chris Baryomunsi made the commitment at the launch of a €12.75 million health project funded through Italian development cooperation. The project, implemented by AVSI Foundation Uganda and its partners, aims to improve healthcare services in the country. Baryomunsi’s pledge followed an appeal by Dominique Corti, President of the Piero and Lucille Corti Foundation, which supports Lacor Hospital.

Lacor Hospital treats approximately 200,000 patients annually, including about 35,000 admissions, and employs around 700 Ugandans. The hospital’s services are subsidized by approximately 70% through support from the Piero and Lucille Corti Foundation. However, Corti said government grants account for only about 5% of the hospital’s recurrent expenditure. She appealed to the government to consider exemptions on Pay As You Earn (PAYE), Value Added Tax (VAT) and import duties on goods donated to the hospital.

In response to Corti’s appeal, Baryomunsi said he would recommend the proposed tax exemptions for consideration by the government. He also said the Ministry of Health would examine government allocations to Lacor and consider appropriate adjustments to strengthen its financial support. The minister noted that existing policies provide for tax relief on certain grants and interventions supporting essential health and education services.

The launch of the health project came against the backdrop of the Prevention, Research and Integrated Services for Maternal, Child and Cancer Health (PRISMA) project. The three-year initiative, running from July 2026 to June 2029, will be implemented in 32 health facilities across Acholi, Lango, Karamoja and West Nile. The project targets more than 500,000 people and seeks to improve maternal and child healthcare, strengthen prevention and treatment of women’s and childhood cancers.

AVSI Foundation Uganda Country Representative John Makoha said the project would address gaps in the quality and continuity of healthcare, particularly for women and children. He highlighted maternal haemorrhage, complications during delivery, premature births, birth asphyxia, malaria, pneumonia, diarrhoea and malnutrition as conditions that continue to threaten lives. Makoha said access to health facilities alone was not enough if patients could not receive timely and appropriate treatment.

The project will also support regional cancer centres in Gulu, Arua, Mbale and Mbarara. Dr Nixon Niyonzima, Head of Research and Training at the Uganda Cancer Institute, said some health facilities already had cancer screening equipment but were not using the technology effectively due to operational and technical challenges. The Uganda Cancer Institute will work with participating hospitals to develop and operationalise screening guidelines.

Prof. Crispus Kiyonga, the Second Deputy Prime Minister, called for healthcare interventions that reflect the geographical and social realities of communities, particularly those in remote parts of the country. Italian Ambassador to Uganda Mauro Massoni described PRISMA as an extension of more than six decades of Italian cooperation with Uganda in the health sector.

Key points

• The Ugandan government has pledged to review its financial support to Lacor Hospital and consider tax exemptions for the institution.
• The PRISMA project aims to improve maternal and child healthcare, strengthen prevention and treatment of women’s and childhood cancers.
• The project will be implemented in 32 health facilities across Acholi, Lango, Karamoja and West Nile, targeting more than 500,000 people.