In the year 2006, a piece of lot along the National Road of Panabo City was purchased by Dr. Inocencia M. Macrohon wherein she put up a Maternity Lying-in Clinic. Despite being located in the outskirts of the city, a huge number of patients came to the clinic. Dr. Inocencia Macrohon displayed patience and compassion to her clients and the clinic provided quality maternity health care services. The genuine kindness and passion to serve prompted her to expand into a hospital. Mr. Willie Macrohon, her husband, and the good doctor pull their resources together and put up a new and bigger building.

The said clinic was named Good Shepherd Hospital of Panabo City, Inc. The census of outpatient consultations and admissions remarkably increased more than what is projected. Mr. & Dr. Macrohon now faced the tedious endeavor in providing cost efficient healthcare services in bigger perspective.

With the support of the group of medical consultants, Good Shepherd Hospital of Panabo City, Inc. was officially opened on July 28, 2012. It is licensed and classified by DOH as secondary hospital. It received its PHIC Accreditation August 28, 2012. In September 2015 the DOH issued an Administrative Order No. 2012-0012-A entitled Rules & Regulations Governing the New Classification of Hospitals and other health facilities in the Philippines, thus Good Shepherd Hospital was re-classified as a level 1 hospital with 34 beds capacity.