Prakhar Propkar Mission Nepal was established on 27th Mangsir 2062 and the foundation stone of the hospital building was laid by Mahamandaleshwor Prakhar Maharaj on 17th Baisakh 2064. The name was changed from Nepal Cancer Hospital to Sushil Koirala Prakhar Cancer Hospital through the hospital's formation order on Falgun 15, 2073. The hospital's OPD service was inaugurated on 11th Ashadh 2074 BS by former Health Minister Upendra Yadav. Operation services have been started in the hospital's own operation theater since 2077 Mangsir 5. This hospital is the only government cancer hospital in Lumbini, Karnali, and Sudar Paschim.