In 1997 began the first plans of the Arco Iris (Rainbow) Foundation to built a hospital, as a result of a search of a system to to attend the health care necessities of the “Children of The Street”. The first health related project was located in a school in downtown La Paz, where ambulatory treatment was provided to these people .

The bills that Father Jose had to pay for the treatment of these homeless children increased steadily in the different local hospital.

In August 1998, the German Papstiiches Missionswerk fur Zinder (PMK – Pope’s Missionary work for the Children) in Germany requested funds to the European Union (EU), for a 5 year project. Thanks to this help, The Arco Iris foundation planned the construction of a modern three story high structure, located on the April15th Street, in Villa Fatima, Alto Miraflores of La Paz. The construction of the Arco Iris hospital was finished in 2001, the opening ceremony was September on the 27th of September and started operating on October 23rd, 2001.

The objectives of the hospital were: Sanitary prevention and rehabilitation of approximately 5000 children that live in the streets and around 30.000 children that work on the streets of La Paz. Another objective was the basic health training to this group of needed people.

The statistics show that 78% of the children have teeth cavities, 42% are alcoholics, 39% have vision diseases, 28% have venereal diseases, 28% have serious nutrition problems, 26% have drug addiction and 16% have other kind of infections, like skin diseases, diarrhea and respiratory diseases.

The hospital of 100 beds, shows a high standards in its infrastructure and medical equipment and is considered one of the best of La Paz, with a staff of 270 people. It has 26 specialties and attends around 80.000 patients a year, from which close to 4.000 belong to children that live in the streets.

It has 4 mobile dispensaries that provide primary health service in the areas where the most unprotected children of the street live. These mobile units attend close to 40.000 children under 18 months old per year, including free provision of medications.