The Medical College was founded as Employee’s State Insurance Corporation Medical College by Shri Oskar Fernandes the then Hon’ble Minister of Labour & Employment, GOI in the year 2009. In the year 2012, Prof Dr D.S. Dhiman was appointed first Dean of the college by the Employee’s State Insurance Corporation (ESIC).

In the year 2016, the management of the ESIC showed its reluctance to run this college at its own and ultimately the project was handed over to the Govt. of Himachal Pradesh after signing a MOU under certain conditions. The Govt. of Himachal Pradesh has applied to the MCI to accord permission for starting the batch from 2017-18 for this medical college now named as Shri Lal Bahadur Shastri Govt. Medical College, Mandi at Ner Chowk and the following administrative officers have been appointed :
1. Dr. D.S. Dhiman as Principal cum Dean.
2. Desh Raj Sharma CMO Mandi as a Medical Superintendent of associate hospital Zonal Hospital Mandi.
3. Pankaj Sharma (HAS), Joint Director.
4. Sh. Mahesh kumar Sharma, Assistant controller (F & A).