The role of Foreign Direct Investment (FDI) in developing countries like India becomes considerably a key driver of economic growth. FDI contributes for the Development of the country in the form of development of Multinational companies (MNCs) in India, which provides education and training for their employees and brings new skills, information and technology to host country. The Foreign Institutional Investors (FII) are being a major support for the development of corporate hospitals in the country. Hence an attempt has been made to analyze the impact of FDI in Hospitals through several literature reviews, using secondary data and with the help of personal interviews of administrative staff of Mysore corporate hospitals.