However, the fire was not a major one and a fire tender brought it under control, they said.
Smoke billowed out of the medical waste which included cotton and bandage and filled a portion of the hospital, the sources said.
Panicked patients, their relatives and hospital staff ran helter-skelter before the situation was brought under control.
All patients were safe and no damage was caused to the hospital building, the sources said.
It was being suspected that a burnt stub of a cigarette or 'bidi' thrown on the waste caused the fire.
Top officials of the district administration also visited the hospital.
