The building was designed in 1935 by architect Moshe Gerstel, initially intended as a three-story hotel.

Dr. Gerhard Rosenkranz, who had immigrated to Israel from Germany in 1933, was the initiator of the hospital's establishment and served as its director for 25 years.

In 1976, the hospital's current main building, a 7-story structure on Michal Street designed by architect Yaakov Rechter, was inaugurated.

Following the Second Lebanon War, Carmel Medical Center established a new emergency room with reinforced concrete walls (60cm) to provide protection from missiles.

In 2023, the Ministry of Health announced that the medical center will relocate to a new building in Kiryat Ata, a city near Haifa, and will be named Menachem Begin Hospital".