Under Section 6(1) of the Maharashtra Mathadi, Hamal and Other Manual Workers (Regulation of Employment and Welfare) Act, 1969, various Mathadi Boards were established in the State. As per the schemes of these Boards, the Mathadi Hospital was established to provide medical facilities to Mathadi workers and their family members. The Mathadi Hospital (Trust) is a welfare project of the Mathadi Boards and is registered with the Charity Commissioner.

Late Shri Annasaheb Patil, with the support of the dedicated and knowledgeable Dr. K. R. Toraskar, started a small clinic in the year 1976 in the Masjid area, which was then considered a suburban locality. Over a period of time, this clinic was expanded into a polyclinic and later developed into a small hospital. After shifting from the Masjid area to the market vicinity, a well-equipped 129-bed hospital has been constructed at Koparkhairane. The institution presently consists of two buildings.