This building is a “B” category in-patient clinic type, meant for the prevention, treatment and rehabilitation of patients suffering from rheumatic and coronary illness, built in 1974. It is situated in the central zone of Niška Banja (or spa), at the rim of the tufa terrace. It was designed by the Niš architects Aleksandar Buđevac and Borislav Spasić.

Through the park of Niška Banja, from the tufa terrace, one can enter the fourth floor of the clinic, and from there one accesses the lower floors and accommodating salons, the therapy block with a pool and sauna, and the main entrance to the building from the circular access road. This level difference was used for the decorative formation of a waterfall, which was designed by the Niš architect Mihailo Medvedev. The waterfall is fed by the thermal water which runs to it through open canals meandering through the park. A natural tufa waterfall existed earlier at this location. On the higher floors, there are accommodation rooms with a capacity of 240 beds. It is interesting that during the construction of the in-patient clinic, an early-Christian tomb was discovered which caused a change in the original design, in order for the discovery to be presented to a wider public.

This International Style building was later expanded, according to the designs of the co-designer, architect Borislav Spasić. The building serves its original function, and the designer won the October Prize in 1975 for this work.