The Jewish philanthropist David Sassoon from Mumbai made a generous donation to make the construction of the hospital possible in 1867. The hospital could originally accommodate 144 patients.

In year 1946 on 23rd June, B. J. Medical College was founded to replace erstwhile B. J. Medical School, with Shri. B. G. Kher the head of the Bombay Government, laying the foundation stone. This was the fulfilment of the vision of a far sighted Parsi philanthropist Byramjee Jeejeebhoy, to have an institution in Poona for training of doctors and providing medical facilities on par with those in Bombay. His generosity and munificence made it possible for the B.J. Medical School to start functioning from 1871 on land donated by him, and when the school was upgraded to the college in 1946, quite filtergly the name was retained. The medical course of MBBS was affiliated to the University of Poona (Pune) in 1949.

Pune had already been blessed by the generous contribution of Sassoon- a Jewish merchant family in the form of the David Sassoon Hospital (Old Sassoon Building) built at a cost of Rs. 213,000 serving the poor and needy from 1867, and the Jacob Sassoon Hospital constructed by his nephew in 1905-06 to relieve the congestion on the David Sassoon Hospital. Both were magnificent buildings, architectural marvels and the clock tower of David Sassoon Hospital, a landmark in the city. The campus had already been blessed by the presence of two great personalities - Avtar Meher Baba was born in the old maternity ward in the hospital, and the father of the nation, Mahatma, Gandhi was operated upon for emergency appendectomy in 1924 by a British Surgeon Col. Murdoch with an Indian anaesthetist Dr. Datey in attendance.

The embodied symbol of Indian nation was immured behind the walls of the Yerawada Central Prison, Poona.

The Jail Manual was applied to him rigorously and yet in prison Gandhiji was “as happy as a bird”.

Twenty-two months of prison life had an adverse effect on Gandhiji’s health. On the night of January 12,1924, amidst a violent thunderstorm, state prisoner Gandhiji was operated upon in Sassoon Hospital, Poona, by Colonel Maddock for acute appendicitis.

The electric light fused during the operation. The appendectomy had to be finished by the light of hurricane lamp. Ganhiji thanked his surgeon profusely and they became warm friends.

The prisoner under guard began picking up unexpectedly fast.

On February 4, the Government remitted the unexpired portion of Gandhijis sentence and released him unconditionally. His reaction was “my release has brought me no relief”.

On August 4, 1933,Gandhiji was sentenced to one year rigorous imprisonment for disobeying the restraint order requiring him to reside within the limits of Poona city.

On being refused facilities for doing the Harijan work from inside the Yerawada Prison, he commenced a fast “unto death” on August 18th.On August 21st, the prisoner was once again removed to the Sassoon Hospital. Gandhiji said his prayers & broke his fast with a glass of orange juice.