The credit for this hospital goes to Lala Charanji Lal who donated his property in the village and provided additional financial help to have this hospital built in the name of his father Hans Raj. The foundation stone was laid on March 01, 1975 by the then Chief Minister of Punjab Giani Zail Singh. The opening ceremony was performed on December 19, 1982 by Joginder Pal Pande the then Health Minister of Punjab. In addition to the presence of all residents of Kahma the following dignatories namely, S. Dilbagh Singh M.L.A, Smt. Suraj Kumari Ansal wife of Lala Charanji Lal, Sushil Ansal and Gopal Ansal (sons of Lala Charanji Lal) also graced the occasion with their presence.
Thekedar Jagat Singh played a special role of supervising the construction and spent countless hours at the site.
Kahma Canadian Association and Kahma Welfare Committee also played significant roles.

Presently, one M.B.B.S. doctor and a pharmacist along with other support workers are managing the hospital. The medicines are provided by the Kahma Welfare Committee.