The Voluntary Health Services (VHS), a registered non-profit society, was founded in July 1958, in Chennai (Madras), India, by the late Dr. K.S. Sanjivi, a renowned physician, a respected teacher and a visionary. Its basic concepts are the prevention and cure of serious illnesses, and the fostering of the family as a unit for medical care, with a family insurance scheme that is income-based. Among VHS's other objectives are community participation in its endeavours, medical education and medical research, and fieldwork in the organisation of medical care and health education.

The cornerstone for the first block of buildings was laid in October 1961 by Pandit Jawaharlal Nehru. By July 1963, the Medical Centre was fully equipped and staffed, and the first patient admitted. Since then, the hospital has grown into a 405-bed institution, with a range of departments. About 70% of the patients (those with a monthly income below a certain limit) are treated free of cost, which includes free diet and medicines. Under the Medical Aid Plan, members are enrolled on payment of a nominal subscription, and the hospital charges vary according to monthly income.

Financial assistance has been provided by the Government of Tamil Nadu for a substantial part of the initial capital outlay and recurring expenditure, and the Government of India has also helped with ad hoc grants for equipment and research. Many institutional and individual donors (Indian and foreign) too have supported, and are continuing to support, VHS with money and materials.

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