The Karnali Academy of Health Sciences (KAHS) was established in 2011 through an Act of parliament in Nepal. The academy was formed with the aim of providing quality healthcare services and education to the people of the backward areas at an affordable cost. The academy is located in Jumla, where the existing Karnali Zonal Hospital was upgraded to provide advanced medical services. The academy's goal is to produce skilled health professionals who can deliver quality health care services and conduct health researches in the backward districts of Nepal. The backward districts include Humla, Jumla, Kalikot, Dolpa, Mugu, Jajarkot, Bajura, Bajhang, Achham, Surkhet, Dailekh, Rukum, and Salyan.

The academy is owned by the Nepal government and functions as a teaching hospital that provides various medical services to its patients. The hospital started its services from the 17th Kartik, 2069 (November 3, 2012) and has been upgrading and expanding its services each year. The Karnali Province, where the academy is located, is the largest province in Nepal with an area of 24,453 km2. The population of the province is 1,701,800, which is the least in ranking of province in Nepal. The province is surrounded by Gandaki Province in the east, Province No. 5 in the southeast and south, Province No. 7 in the west, and China in the north.