In 2003 , the Government of Punjab has established a unique, self financing Services Institute of Medical Sciences (SIMS) for undergraduate medical students and attached to services Hospital. It is planned to construct SIMS hostels and residences for the hospital-related staff on the premises of PGMI and the main SIMS campus within Services Hospital itself SIMS, which has been provisionally recognized by Pakistan Medical and Dental Council, had been functioning on the campus of the Postgraduate Medical Institute using he faculty of PGMI. According to the requirement of Pakistan Medical Dental Council, Board of Management, SIMS / Services Hospital , has created posts for teaching and allied staff, authenticated by Finance Department.

The 6-Birdwood Road premises have been handed over to SIMS and now we have got our own premises and faculty to teach our students. Teaching posts have been filled with teachers and Professors of the highest rank and contractual recruitment of Assistant Professors of the disciplines is under way. Supporting Staff have also been recruited on contractual basis. As a result, Services Hospital is now functioning at par with any other teaching institution.

The Health Department of the Government of Punjab has appointed a Project Director for SIMS and approved its Project Implementation Unit (PIU). PC-i of SIMS has been approved by planning and Development Department and Construction work is likely to start in the near future. After completion of College building and provision of most modern equipment SIMS will be comparable with any national or international teaching institution.