This chapter discusses evolution of hospitals. The hospital is an integral part of a social and medical organization, the function of which is to provide for the population complete health care, both curative and preventive. The hospital is a sub system of a larger social system. The hospital subsystem again consists of various sub systems, like clinical services, diagnostic services, therapeutic services, support and utility services. The first hospital in USA was founded in 1751, the Pennsylvania Hospital. India became free in 1947 and there were 7400 hospitals and dispensaries in India. There were 113000 beds with bed population ratio of 2/1000 population. The hospital practice became a team approach. The advances in technology became more rapid. The growth of Community Health Centre, Primary Health Centre and subcentres in India since independence is shown in also discussed.