The old district headquarters of Surkhet, Gothikanda, saw the establishment of a health center in 2019 BS (1962 AD). This facility was relocated to the Surkhet Valley around 2024 BS (1967 AD) and upgraded to a 15-bed district hospital in 2029 BS (1972 AD). By 2049 BS (1992 AD), it expanded to a 25-bed district hospital. On Falgun 7, 2062 BS (February 19, 2006 AD), it was upgraded to a 50-bed Mid-Western Regional Hospital. Finally, on Kartik 13, 2075 BS (October 30, 2018 AD), it was transformed into the Provincial Hospital of Karnali. Now operating with the financial support of the provincial government and some assistance from the federal government, it provides specialized services as a 300-bed hospital, continuing to serve as the Provincial Hospital, Surkhet.