The hospital was established in 1934 by Indian freedom fighter Lala Lajpat Rai in the memory of his mother, Gulab Devi, who died due to tuberculosis in 1927.

[citation needed] Lala Lajpat Rai established a trust in 1927 to build and run a hospital, to perpetuate the memory of his mother, who died of tuberculosis in Lahore.

Those who are in charge of it viz Doctors, Nurses and other are doing excellent work and deserve our thanks for their selfless devotion to this humanitarian work".The Cardiac wing began in 1984 and the hospital is now one of the biggest cardio-thoracic hospitals in South and East Asia giving Tertiary health care to 1500 patients.

They constituted a Managing Committee with Begum Raana in the chair to run the Gulab Devi Chest Hospital.

On the resignation of Mrs. Manzoor Ellahi, Syed Shahid Ali was unanimously elected as chairman of Managing Committee in a meeting held on 12 June 2014.