According to the history, sixty five dispensaries (Hospital) were established outside of the Kathmandu valley at the time of Late Prime Minister Shree 3 Chandra Sumsher J. B. Rana. Among them, one six bedded dispensary (Hospital) was established in the Royal Palace station of late Sen dynasty King Mani Mukunda Sen, in 1967 B.S. at present known as the Phulbari Park (Mani Mukunda Sen Park) of Butwal. This dispensary was the initial stage of present Lumbini Zonal Hospital.
During the period of Late Prime Minister, Shree 3 Bhim Samsher Jung Bahadur Rana, three dispensaries (hospital) buildings were constructed in this area. Among them one hospital building was constructed in 1988 B.S. in Blood bank area of this hospital. After complete construction of this hospital building, it was re-located at present place from Mani Mukunda Sen (Phulbari Park). The construction of present hospital building was started by the former Prime Minister Surya Bahadur Thapa as a chairman of upper parliament on 15th Falgun 2016 B.S. and inaugurated on 2024 B.S. by Lumbini Zonal Commissioner.
This hospital was six bedded when it was started; gradually its capacity was increased. When it was shifted at present site on 2024 B.S., its bed capacity was 50 and was declared as Lumbini Zonal Hospital. This hospital was upgraded as a 100 bedded hospital on 1st of Shrawan 2050 when health minister was lead by Dr. Ram Baran Yadav, the current president of Nepal. At that time this hospital was functioning under the Government of Nepal & Lumbini zonal hospital development committee which was formed by Nepal government on 2045 B.S. in the exercise of power conferred by sector 3 of Development Board Act 2013 (1965).
This hospital was again upgraded on 28 Bhadra, 2061 B.S., where its 100 bed capacity was increased to 200, 100 provided from the government of Nepal itself and 100 beds managed from the hospital development committee. Though at present only 35 beds are running by hospital development committee.

Lumbini Zonal Hospital is situated at the Junction of Mahendra and Sidhdharth highway in Butwal Municipality of Rupandehi District in the western part of Nepal near by is the birth place of Lord Buddha, lumbini. Globally its position is latitude 270 41' 52" (N) and longitude 830 27'51" (E) and 865 meter above sea level. It lies at the bottom of Siwalik hill of Palpa & Rupandehi district. This hospital covers all the districts of Lumbini zone including some south west part of Shyanja district of Gandaki zone, southern parts of Parbat and Baglung district of Dhaulagiri zone, whole part of Pyuthan district of Rapti zone and half parts of Rukum Rolpa and Dang district of Rapti zone. The hospital catches about 4 Million (40 Lakhs) population & thirteen districts of western part of Nepal.

It is a tertiary level government hospital, has total 135 beds The hospital has manpower as total 230 staffs among them 33 doctors, 46 nurses, 37 paramedics and supportive staffs. We have outpatient & indoor services in which General Medicine, General Surgery, Paediatric, Orthopaedic Surgery (including Physiotherapy service), Ear Nose and Throat (ENT) Surgery, Obstetrical and Gynaecological departments and OPD services for dental and dermatology. Laboratory, Radiology, ECG, Endoscope, Audiogram and Tympanogram services are available. We have medical record department (MRD) and pharmacy, housekeeping & maintenance units are available as clinical utility services. There are also immunization, nutrition, safe motherhood, family planning services, Tuberculosis control program including Dot's, Leprosy control programs and Malaria control programs Direct Observation therapy (Dot's) are available.

We also offer Anti recto viral therapy (ART), Voluntary Counseling and testing (VCT), Prevention Mother to Child Transmission (PMTCT) and Opportunistic Infection (OI) management services of HIV/AIDS Programs. Apart from curative, preventive, promotive and rehabilitative services, we provide Early Warning Reporting System (EWARS), in which Malaria, Kala-azar, Dengue Fever (DF)/Dengue Hemorrhagic Fever (DHF) / Dengue Shock Syndrome (DSS), Cholera, Severe Acute Respiratory illness (SARI), Fever, Enteric Fever, Leptospirosis, Hydrophobia and chicken Guniea related cases are watched and immediate report to respective department when they are record. We offer also Immunization Preventable disease (IPD) surveillance systems, in which Polio, Neonatal Tetanus, Encephalitis and Measles related cases watch and reports.