Mr Welch has been at the helm of the organisation for five and a half years.

He departs on August 21 to become chief executive officer of Mildura Base Public Hospital.

Recruitment for a new chief executive officer at Maryborough District Health Services is underway.

The organisation's chair, Peter McAllister, said Mr Welch's contribution to the health service had been invaluable.

Mr Welch was credited with raising the health service's profile, working to substantially improve its financial position, and prompting cultural reform.

"Our clinical service growth has been just extraordinary during this time," the organisation said.

Mr McAllister said the legacy Mr Welch had left behind was truly appreciated.

"I, along with my fellow board of management members and staff, formally thank Terry for his dedicated service and wish him every success in his future endeavours," he said.

Mr Welch is believed to have told staff he felt privileged to have led the organisation, including "500 of the most inspiring people you will ever work with."

"I couldn't be prouder of the organisation in 2020.

"I know the health service's figure is in capable hands, with leaders and staff ready to take the Maryborough District Health Services redevelopment to the next stage.

Birthing services at Maryborough District Health have been the subject of investigative reports by the ABC.