Nepal Police Hospital was inaugurated by the late king Birendra Bir Bikram Shah Dev on the 27th of Chaitra, 2040 BS. It was established with an intention to provide free health services to in- service policemen, their families and ex-servicemen and their spouses. The hospital commenced OPD services and 25 bedded indoor services through 5 medical doctors, a few nurses, paramedics and administrative staff. The infrastructure then was built with the financial support of the Government of Nepal and voluntary contribution of the police personals. Some instruments and equipments were donated by the Government of India and a Japanese club. The Government of Nepal has been bearing all the expenses of the hospital ever since its establishment (infrastructure development, upgrading human resources and equipments). The routine annual budget allocated by the government to the hospital is inadequate to meet the increasing demand of health services of the staffs of the Police organization. Therefore, Prahari Kalyan Kosh (Police Welfare Fund) of Nepal Police has established a trust to provide health services to the family members of the serving policemen and ex-servicemen and their spouses. The fund supports to purchase medicines for physically and mentally handicapped and Renal Failure patients. It also provides variable additional budget every year to further support the above mentioned group of patients. Though the spectrum of services provided by the hospital in the initial stage was minimal, it had a great positive impact on all the policemen and medical professionals.

Nepal Police Hospital has always believed in providing quality service to its patients and has been able to earn the faith of the people it serves. Therefore, ever since its establishment in B.S 2040 there has been a gradual increase in the patient flow. Considering the ever increasing demand the police hospital has recently been upgraded to 300 beds so as to be able to cater to a larger group of patients. The organization also aims to open its services to the public in the near future. Detailed plans has been worked out and forwarded to the higher authorities for the same. The organization also has regional hospitals in Dipayal and Nepalgunj.