Also popularly known as the Hospital de Afuera as it is outside the walls. It is located in such a location due to the municipal ordinances of the time, which expressly prohibited buildings for sanatorium purposes from being within the urban area. Its construction is due to Cardinal Juan Pardo Tavera, who gave the building its name, and it began in 1541 by Alonso de Covarrubias. In the middle of the 16th century, Hernán González de Lara, who was until then a rigger, took over, who was in 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 Archives of Nobility, and a magnificent museum.