Nazareth Hospital was started in 1948 to respond to the felt need of the people in and around Mokama by the Sisters of Charity of Nazareth from Kentucky, United States of America. It was the only hospital with multiple facilities within a 90 km radius. The hospital is owned and managed by the Sisters of Charity of Nazareth, a charitable institution, that provides comprehensive health care to the rural poor and the needy with special emphasis on women and children. The Community Health Department (CHD) was inaugurated in the year 1961 to provide health care facilities at the grass root level to the rural poor in the villages. It holds a number of routine immunization along with preventive, promotive and curative services. From a 25-bed facility in 1948 slowly and gradually the hospital grew to a 150-bed facility by the year 1965. There was an increase in the number of patients and demand for further expansion of bed capacity. The hospital was expanded to 280 beds with various departments and diagnostic facilities in l984 and served millions of people. The first HIV/AIDS care centre in Bihar was started in 2004 in collaboration with the Bihar State AIDS Control Society (BSACS)

The Hospital saw a gradual decline in the patient number and professionals like doctors, paramedical and HR personnel since 2005. Further, the unaffordable demands of the trade union led to the closure of the IPD services in 2012. Hospital took a new direction and opened a Palliative care Center and wellness centre. HIV/AIDS care is continued and many outreach activities including Home Care are being provided.