The hospital is located at the west end of Malé. The hospital is a gift from the Indian Government and is dedicated to Indira Gandhi. IGMH replaced the previous sole hospital, Central Hospital, located at the center of Malé. Central Hospital was later demolished and the location was leased to a private party by the Government to make another hospital.
The Indira Gandhi Memorial Hospital has 275 beds and provides a range of basic and speciality services as of May 2009.
In October 1986 the Maldivian government requested India's assistance in building a large scale hospital during Rajiv Gandhi's official visit. It was agreed to by Rajiv Gandhi; two years later, India and Maldives signed a memorandum of understanding in October 1988. The foundation was laid on January 14, 1990 and it took almost 5 years to complete the hospital.
The hospital was officially handed over to the Maldivan Government by the Indian Union Minister for Urban Development, Shrimathi Sheila Kaul, on February 2, 1994. It was officially inaugurated on April 15, 1995, by P. V. Narasimha Rao.