The 15-month-old Cocker Spaniel has taken up her post at hospitals run by Northumberland, Tyne and Wear NHS Foundation Trust in Newcastle.
Coco and her ex-police dog handler John McCarroll will make the rounds preventing patients, visitors and even staff misusing drugs.
Hospital authorities decided to hire Coco amid reports that drug dealers may sell drugs to vulnerable patients.
They said that if drugs use was suspected it used to take up to two weeks to arrange a search.
The move has been inspired by the work of the South London and St George's Mental Health Trust who have been using their own trust search dog to help reduce incidents of anti- social behaviour.
Gary O'Hare, director of nursing and operations at the trust which covers seven hospitals, said Coco and her handler had been "an excellent addition to our staff teams".
"They will ensure we can continue to offer a safe and supportive environment for those receiving treatment, whilst giving people the confidence to report anything they find suspicious, either in our buildings or anywhere in our grounds."
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