This hospital was started in Koraput district as Dispensary in 1908 in an Old Building. It was upgraded to Local Fund Hospital in 1937 with 47 beds. It was shifted to the present building on 25.10.2004 with 188 functional beds. Now it has 300 functional beds.
Based on the scheme of Government of India, Government of Odisha has decided to upgrade this hospital into Medical College Hospital in view of benefit of patients not only in the undivided Koraput district but also other backward districts like Kalahandi, Nuapada as well as the two neighbouring states of Andhra Pradesh and Chhattisgarh. This hospital is now named as Saheed Laxman Naik, Medical College Hospital, Koraput, Odisha.