Located on Chand Bibi Road, the hospital is dedicated to Lady Dufferin, wife of the colonial Governor General Lord Dufferin. Construction was begun in 1894, largely due to the efforts of Parsi millionaire and philanthropist Eduljee Dinshaw. The hospital lies in the vicinity of the Dow Medical College and Civil Hospital. Like other Dinshaw's projects, the hospital is known for treating the poor and the needy.