Punalur taluk hospital is considered to be one of the best Hospitals in public sector healthcare in India with ultra-modern facilities. The District Cancer Care Centre is also functioning in Punalur. Govt. Hospital for Mother & Child also sanctioned in Punalur. Now, it is the biggest Govt. Taluk Hospital in Kerala with 11 Floors. A proposal for this Hospital to upgraded as a General Hospital/District Specialty Hospital. The Punalur Taluk Hospital has set a benchmark in public sector healthcare to get a new hi-tech building under Kerala Infrastructure Investment Fund Board (KIIFB). The building will have 32 outpatient units functioning at the same time, which is first of its kind in a taluk hospital. INKEL will construct the 11-storey Rs 68-crore building having a total area of 2,00,000 sq feet under the ‘Aardram’ mission. The new facility will have 333 beds for inpatients, 94 ICU beds and seven lifts. "The hospital will compete with any of the corporate hospitals in the state, with 32 doctors available at a time attend outpatients in the new building." The hospital had bagged awards from Kerala State Pollution Control Board for the last six consecutive years of which three are excellence awards. The hospital already has employed 40 advanced cosmetology procedures including skin platelet-rich plasma administration, follicle transplantation, squint correction, and dental jewellery. The programme ‘Beside you – birth companion scheme’ permits husband or female relative of pregnant women to be present in the labor room at the time of delivery.

The hospital is also the first to employ a painless delivery facility in a public sector hospital in the state. The hospital has centralised systems for air, oxygen, and suction in all beds, probably the lone facility in public health centres. Dialysis and cancer care services are free. Palliative care also functions at the hospital, which receives over 2,000 outpatients per day a number a private hospital under normal circumstances used to have.

ESI Hospital, Government Taluk Ayurveda and Homeo Hospitals also Major private Hospitals functioning in Punalur.