All praise is due to Allah, and peace and blessings be upon the Messenger of Allah.
The recipients of Zakat are specified in the words of Allah the Almighty: "Zakat expenditures are only for the poor and the needy, and for those employed to collect [Zakat], and for bringing hearts together [for Islam], and for freeing captives [or slaves], and for those in debt, and for the cause of Allah, and for the [stranded] traveler—an obligation [imposed] by Allah. And Allah is Knowing and Wise." (At-Tawbah, 60)
It is not permissible to use Zakat funds for purchasing medicines, medical equipment, laboratory expenses, or general healthcare projects. However, if the funds are allocated directly to poor Muslims to cover their treatment costs—and not for administrative or operational expenses—then there is no prohibition.
A hospital or medical center may act as an agent on behalf of eligible recipients (the poor), receiving Zakat funds and distributing them to them accordingly. This is because the fundamental principle of Zakat is that it must be given directly to the poor as ownership, unless the hospital is government-run. In that case, the governing authority has the right to allocate Zakat funds in the manner it deems most beneficial for the poor.
Scholars have permitted the governing authority—or those in a similar position—to manage Zakat funds in a way that maximizes benefit for the poor. For example, they ruled that an Imam (leader) may purchase property for a poor person to utilize, as stated by Imam Al-Zarkashi (may Allah have mercy on him): "It is akin to the case of a warrior—the Imam may purchase [necessities] for him or give him the funds with permission to buy." (Mughni al-Muhtaj, Vol. 4/P.186). The reasoning is that "the Imam acts on his behalf in receiving [Zakat], and the obligation is fulfilled once the Imam takes possession." (Hashiyat al-Jamal ‘ala Sharh al-Minhaj, Vol. 4/P.104)
Sheikh al-Islam Ibn Hajar al-Haytami (may Allah have mercy on him) stated: "The Imam may require [the poor] to purchase [necessities] rather than giving them cash, as this serves the greater public interest." (Tuhfat al-Muhtaj, Vol. 7/P.165). This ruling was previously affirmed in Resolution No. (99) by the Jordanian Iftaa` Board, which stated: "It is Islamically permissible to provide Zakat funds to poor Muslim cancer patients who cannot afford treatment and are not covered by any other entity—on the condition that the funds are placed in a dedicated account for their expenses, ensuring Zakat funds are not mixed with other money." This is based on the Prophet’s (peace be upon him) instruction to Mu’adh (may Allah be pleased with him) when he sent him to Yemen to collect Zakat: "Inform them that Allah has made it obligatory for them to pay Zakat from their wealth, taken from their rich and given to their poor." (i.e., the poor among Muslims). And Allah the Almighty knows best.