The All India Institutes of Medical Sciences (AIIMSs) are set up as part of the Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) initiative, announced by the Government of India in 2003 and officially launched in March 2006, for the purpose of "correcting regional imbalances in the availability of affordable/reliable tertiary healthcare services", through setting up AIIMS Delhi-like institutions and upgrading government medical colleges.

[4] As early as July 2014, the government of Telangana has toyed with the idea of offering the yet-to-be-operational Bibinagar, YBG Dist campus of Nizam's Institute of Medical Sciences (NIMS) for establishing said AIIMS,[4] a decision which was announced in January 2015.

[6] In February 2017, in the budget presentation for 2017–2018, the Minister of Finance Arun Jaitley announced two AIIMSs, in Jharkhand and Gujarat, but an institute in Telangana was not mentioned.

[10] The state government offered the Bibinagar campus, and following an inspection visit[11] the location was approved in July, under conditions that an additional 49-acre of land will be acquired and that some infrastructure improvements are made.

[14] The land for the AIIMS was officially handed over to the central government in February 2019[15] and in May it was announced that classes will start in August, from the Bibinagar campus.