The need for such a hospital arose in view of the fact that Nepal Army and Nepal Police employees had hospitals dedicated to them while civil service employees of Nepal Government had none. Thus, Nepal Government approached the Peoples’ Republic of China (PRC) with the request to help build Civil Service Hospital (CSH). An agreement to this effect was signed between the Government of Nepal and PRC . CSH is located at Minbhawan, Kathmandu. CSH is an autonomous government institution under the Ministry of General Administration (MoGA). A seven-member Hospital Board with full executive powers to run the Hospital was constituted by the MoGA and endorsed by The Council Of Ministers. The Hospital Board sets policies and programs during its regular meeting chaired by the Hospital Board Chairman. The Executive Director (ED) of the Hospital executes and regulates the day to day work of the Hospital. The ED is one of the board members and has a full-time paid job.

The foundation stone of CSH was laid by Prime Minister Sher Bahadur Deuba .The 132-bedded and fully equipped Hospital was handed over to the Government of Nepal by the PRC on November 14, 2008. Out-patient services were started on March 29, 2009. The Hospital was officially inaugurated by Prime Minister Madhav Kumar Nepal on May 30, 2009. In addition to the already existing out-patient services, emergency, in-patient, and operation services were started on January 21, 2010.