Studies reveal that an alarming number of city residents die without medical attendance. During the year 1967, 16.45% of the total deaths in the city occurred without medical attendance, and 14.43% with incomplete medical attendance. Added to this problem was the fact all the four national hospitals located in the city cannot accommodate all needy patients and even refuse some 8,000 patients a month.

The enactment on June 22, 1957, or Republic Act 1939, otherwise known as the Hospital Financing Act, spurred the City of Manila to establish its own hospital. The law required Manila to contribute 1% of its annual income for the operation and maintenance of national hospitals in the city.

Councilor Eriberto Remigio sponsors and the municipal board enacts Ordinance No. 4201 appropriating the amount of ₱1 million for the construction of the city hospital. 

Mayor Lacson issues Executive Order No. 39 creating a city general hospital advisory committee. 

The municipal board, presided over by then Vice Mayor Antonio Villegas, passes Ordinance No. 4363 appropriating in additional amount of ₱1.5 million as requested by Mayor Lacson. 

President Diosdado Macapagal issues Presidential Proclamation No. 31 turning over to the City of Manila for hospital purposes the national government property at the corner of Harrison and Roxas Boulevard. 

The cornerstone of the city hospital is laid under the auspices of Mayor Villegas. 

At the instance of Mayor Villegas, the municipal board passes Ordinance No. 4636 naming the proposed city general hospital as the Arsenio H. Lacson Memorial Hospital. 

Upon the insistent representations of Mayor Lacson's widow, the municipal board passes Ordinance No. 6807 renaming the hospital as the Ospital ng Maynila.