The Russian hospital, part of the Russian Compound, was the first hospital in Jerusalem located outside the walls of the Old City. This two-story building was constructed in 1862-63 with funds from Empress Maria Alexandrovna. Although she was unable to visit Jerusalem due to health issues, the empress remained a patron of Russian institutions in Palestine.

Many pilgrims, including many sick and elderly individuals, struggled with the local climate and living conditions, as well as the physical demands of travel. At that time, medical assistance in Jerusalem was insufficient, so the Russian hospital was built for Russian pilgrims. It was located near the southern gates of the Russian Compound. On the western side of the gates were two buildings housing a hospital with 44 beds, an outpatient clinic, and an infectious disease department, which was built later in 1885 with funds from Moscow philanthropists.

Pilgrims who paid a hospital fee of one ruble at the Russian Compound office received free treatment and care.

According to the Imperial Orthodox Palestine Society, the hospital employed a doctor, a surgeon, a pharmacist, as well as a nurse, a matron, and six women for assistance. Visitors noted the cleanliness and order comparable to the best hospitals of that time. The Russian hospital was well-equipped: it had blood transfusion and stomach washing machines, as well as a large set of expensive surgical instruments.

The number of patients in the Russian hospital ranged from 14% (in 1884) to 53% (in 1876) of the total number of pilgrims. Among Russian pilgrims, the morbidity rate ranged from 13% to 46%.

The Russian hospital continued to function during the British Mandate and the War of Independence, when it served as a military hospital and later as a university hospital.