As a efforts of Lat. Stephen Muthukattil Madambam Parish. Mercy Hospital was started on August 22, 1972 with a facility to treat 30 patients at Alex Nagar area. on the instructions of Mar Thomas Tharayil, the head of Kottayam Diocese. C. The hospital started functioning with 6 members under the leadership of Dr. Mary Kalappuraikkal and Caritas Secular Institute members. Rev. Mon. Simon Koonthamathil was the first director of the hospital. Alex Nagar church vicar were the directors of the hospital. Dr. Mary Kalappuraikkal studied in Germany. With Mary’s selfless efforts, the hospital was provided with necessary equipment, medicines and x-ray machine from friends in Germany and provided free treatment to the deserving patients.
In order to provide the services of Mercy Hospital to the residents of Payyavoor, the OP Department was started in February 1975 in the Parish building. In response to the constant requests of the people, a new building with essential facilities was constructed on the premises of the church and it started functioning as a hospital on 15th July 1979 with an IP wing. Dr. Mary was able to manage both hospitals.
Gradually, the number of patients started decreasing in Alex Nagar. The hospital was made operational in Payavoor. OP in Alex Nagar for a few days conducted. In addition to the existing church land in Payavoor, Through Dr.Mary’s efforts, the hospital and doctors’ quarters were expanded and streamlined.
During this period, the Diocesan bishop Mar Kuriakos Kunnassery, in December 1993, entrusted the Caritas Secular Institute with full responsibility for the running of the hospital while retaining it as a diocesan institution and appointed Ms. Annamma Tonnamkuzhi, a member of the institute, as its director. Now the secular institute has handed over the management of the said hospital to the archdiocese. The current director of the hospital is Rev Fr. Sunil Parackal.