[1] In 1939, a new hospital was planned to be built near Suan Dok Gate, in order to increase provision of healthcare in Chiang Mai and spread patients to other facilities as the original 'Chiang Mai Hospital' had a capacity of only 11 beds and was unsuitable for expansion.

As construction was completed in 1941, there was a lack of medical personnel available, so operations were transferred from Chiang Mai City Municipality to the Ministry of Public Health (MOPH) and the hospital was opened on 24 June 1941 as 'Nakorn Chiang Mai Hospital'.

The funding contributed to the construction of X-ray imaging facilities, operating theaters and the pediatric ward of the hospital.

The first regional medical school was then approved by the cabinet in 1956 and set up by the University of Medical Sciences (now Mahidol University) as the Faculty of Medicine Nakorn Chiang Mai Hospital and teaching was done at the hospital.

On 1 January 1959, operations were transferred from the MOPH to the University of Medical Sciences.