At the beginning of the twentieth century a hospital was built in Dishan-kala. Its construction was evidence of the new care for the people's health taken by the Khiva Khan. Whereas previously, the people saw only ta-bibs, here professional doctors treated the sick.

The hospital stretched for many blocks along the Ichan-kala, A famous artist of Khorezm, Abdulla Baltayev, took part in building and decorating it. A majolica ribbon bears the inscription: The Hospital of Cesarevich Alexey. It shows that the Khiva Khanate maintained some friendly relations with Russia in the early twentieth century. The architecture of the hospital is eclectic and reflects the elements of European and local architecture.