St. Ignatius Convent was established just a couple of years before the new Diocese of Karwar came into existence. The Most Rev.Ignatius Lobo, the then Bishop of Belgaum Diocese of which the Uttara Kannada District formed a part, had realized that this part of the diocese was backward in many ways, spiritually,  socio economically and infrastructurally. The health care facilities too were not very visible in those days. There were a few practitioners who did their best to treat the patients for their ailments. There were private nursing homes in Bhatkal and Kumta as well as the Government Hospital at Karwar and the Government Health Centres in the taluka headquarters including Honavar. Yet the people keenly felt the need of a full- fledged charitable hospital.

Venturing into a major programme such as establishing an hospital was a difficult thought and deed and hence at that moment contacting a religious congregation well experienced in managing such health care institutions was the only solution and the mantle fell on the Religious Congregation of the Missionary Sisters of the Queen of the Apostles.. In the year 1972 , the Bishop approached the sisters inviting them to start a community of theirs at Honavar, with a view to serving the people through a hospital and through a village outreach programme. The sisters readily accepted this invitation and thus the foundation was laid for the establishment of the new hospital. Thus the pioneers of the new foundation in Honavar,  Sr’s Bernadine, Acquiline, Hermingld and Digna landed in Honavar and made their temporary abode in a rented house for about an year and a half till a small house of their own was built in the compound of the newly acquired site at Prabhatnagar.

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On the feast of the St.Ignatius 31.07.1974 the foundation stone was laid. After about four and a half years, the construction of the entire hospital complex took place. And on 15th November 1978, the Hospital was inaugurated by the then Health Minister of Karnataka, Mr. Mallappa  and blessed by the Bishop of Karwar, the Most Rev. Dr. William  L D’mello,.

The hospital was equipped with six general wards, six special rooms, two operation theatres, (one of them minor OT) , clinical laboratory, X’ray unit etc. At that time , St. Ignatius Hospital was fortunate to have the services of qualified and dedicated doctors from its very inception. Dr.Prema Kundargi ,  the first Medical Officer of the hospital  helped reach out to the poor patients of the surrounding villages with a humane touch.

In the year 2003, St. Ignatius Hospital completed it’s Silver Jubilee. In commemoration of this achievement, the hospital underwent necessary changes. A New trauma centre with equipment such as Cardiac Monitor, Central Oxygenated system, Ventilator.etc. was introduced, the new block was inaugurated and above all a separate ward for the psychiatric patients called as Prem Dham was introduced.

Meanwhile the old hospital was giving way due to the incessant rains causing constant leakage and a new hospital was planned for and along with it it was decided to upgrade the facilities of the hospital.

Today the hospital has the services of Phsyician Paediatrician, Psychiatrist, Gynaecologist, ENT Surgeon, Orthopaedic Surgeon, General Surgeon, and Physiotherapist along with  visiting Cardiologist,  Urologist, Nephrologist, Neurologist, Oncologist, Radiologist, Dermatology and  Ophthalmologist..