The Association of plantations in the region Malang established this company hospital at Kendalpaijak in the Residency Pasoeroean in 1897. Source Koloniaal Verslag 1898, 122: The missionary teacher at Kendalpaijak received some training from medical doctors and got ample practical experience in treating patients. The hospital for indigenous patients was established by him with the assistance of private funds. Daily 30 to 50 patients received treatment and care and therefore the NI Government decided to subsidize this work with an annual allowance of ƒ 600. (Government Decision no. 25 of 11 January 1899).The medical supervision was commissioned to the first acting officer of health at Malang.

From 1 April 1901 the institution at Kendalpaijak was closed and its service was continued at Swaroe in the same Residency. The annual subsidy for Kendalpaijak was transferred to Swaroe and the Director OEN was authorized to appoint a Christian dokter-djawa for this hospital.