Also popularly known as the Outside Hospital when it is outside the walls. It is located in such a location due to the municipal ordinances of the time, which expressly prohibited the buildings intended for sanitary purposes from being within the urban area. Its construction is due to Cardinal Juan Pardo Tavera, who gave the building its name, and began in the year 1541 by Alonso de Covarrubias. In the middle of the 16th century, the one who had been until then the surveyor, Hernán González de Lara, took charge of the works until his death in 1577. It was then that Nicolás de Vergara el Mozo took command, leaving his style imprint on the hospital church, where the founder is buried.

Currently in the building there is a primary school, the Archive of Nobility, and a magnificent museum.

It can be visited from Monday to Saturday and holidays from 10:00 a.m. to 1:30 p.m. and from 3:30 p.m. to 5:30 p.m. It is not open on Sunday afternoons. It remains closed on December 25 and January 1.