Just before the outbreak of World War II in 1941, Congress of the Philippines appropriated PhP 120,000 for the construction of a hospital building in teh province of Surigao.  However, World War II and the Japanese forces occupation in the Philippines in 1941 to 1945 delayed its construction.

It was not until 1948 that the construction of the building was started on top of a beautiful hill situated along the highway towards Agusan Province and just a  mile from the wharf of the capital town of Surigao.  The building was completed at the end of 1949 and was inaugurated on January 29, 1950.

However, the then Surigao Provincial Hospital was established on October 6, 1946 with an authorized capacity of 25 beds. After the inauguration of the new hospital building in 1950, the Provincial Hospital now has a new building to house its patients and consequently, additional medical equipment and instruments were purchased thus expanding the health care capability of the hospital.

Due to the increasing number of admission and the in line with the five-year Hospital Rehabilitation Program of the Department of Health, Congress of the Philippines appropriated PhP 25,000 and PhP 74,625 in 1955 and 1956 respectively.  Construction of an annex building started during the middle part of 1957 and was completed on March of the next year.  Meanwhile, bed capacity of the hospital was increased from 25 to 50 beds effective July 1, 1958.  With the increase in bed capacity, the number of organic personnel was also increased to conform to the staffing pattern.

As the years passed, the country progressed and hospitals throughout the nation have to keep up.  New trends in hospital management and treatments were instituted while new problems have to be solved.  With the economic condition of the country improving, additional funds were appropriated for the hospital to acquire for modern facilities, purchase supplies and materials and increase in personnel salaries in accordance with the WAPCO scale.  A new electric generator was acquired in 1961 to the hospital with electric power.

With better facilities and improved hospital services coupled with the growing consciousness of the public on hospital care, more patients were admitted.  In 1962, authorized bed capacity was increased to 75 beds.

In 1970, bed capacity was increased to 100 beds and in 1975 it was increased to 150-bed which is being implemented until today.

On April 1, 1993, the hospital was devolved to the Province of Surigao del Norte by virtue of the Local Government Code.  It has remained under the provincial government until February 11, 1997 when Republic Act 8255 was signed into law converting the Surigao Provincial Hospital into Caraga Regional Hospital with an authorized bed capacity of 150.

The law implemented on August 1, 1997.  Today Caraga Regional Hospital is one of the premier referral hospitals in the region and the neighboring provinces.