The Arya Vaidya Chikitsa Sala was established in 1924 at Kottakkal. The main wing of Arya Vaidya Sala’s charitable activities, the hospital provides free Ayurvedic and Allopathic treatments to the poor and needy patients. It also operates a Maternity Home, a Panchakarma Ward, a special OP for Cancer, and a Poison Treatment Ward.

The establishment of Charitable Hospital is very significant not only in the history of Arya Vaidya Sala but in the history of the evolution of Ayurvedic system of health care also. P.S. Varier established this facility for imparting practical instruction to the students of his Ayurveda College. He set up an Allopathic wing also, to function separately from Ayurvedic wing, for giving lessons in anatomy, physiology and surgery. These wings are continuing to function parallely even now, but on a much larger scale. The patients can opt either Ayurvedic or Allopathic course of treatment. About 1000 patients attend the out patient unit every day. Allopathic drugs are bought from the market by Arya Vaidya Sala and given free to the patients. The classical Ayurvedic medicines are also given free to the patients. The IP unit, which can accommodate about 160 patients at a given time, provides medicines, therapy, food and accommodation free of cost to needy patients. More importantly, the Charitable Hospital facility, over the period of time, has expanded its areas of operation. It has become a centre for clinical research. Cancer, diabetes, rheumatoid and osteo-arthritis are the areas in which clinical research is being carried out. There is an Ethical Committee and Clinical Research Committee which supervise the research activities