The project of the Sukhumi City Hospital was submitted to the construction department of the Kutaisi Provincial Administration on May 21, 1900, where it was approved by the provincial engineer on June 8.
This became the first civilian hospital built in Sukhumi — before 1902, the city had only a military hospital.
The hospital was designed for 25 beds, which were divided into 19 wards with a total area of 695 square meters.
On March 28, 1902, contractor Ivan Gorlov completed the construction of a concrete staircase leading to the hospital.
On April 24, 1902, the first meeting of the hospital committee of the Sukhumi City Duma took place, at which professor Ostroumov was elected honorary lifelong trustee of the hospital.
On May 12, 1902, patient admissions began.
In 1905 the number of beds had increased to 35, and by 1907, to 44.
After the death of Professor Ostroumov in 1908, Prince Nikolai Nikolaevich Smetskoy (1852–1931) was elected honorary trustee of the Sukhumi City Hospital.
Using his funds, major renovations were carried out in 1909.
Today, the Sukhumi Oncology Hospital is located in this building.