Virtual hospitals represent a promising future for the healthcare sector worldwide. The aim of this study is to explore the concept of virtual hospitals, factors affecting its supply and demand, and benefits of such application. The method of this study was conducted via a literature review which included more than 10 journal articles that describe evidence related to the aim of the study. An elaborate discussion is presented further which shows that factors affecting the demand of virtual hospitals include pandemics and costs, and some benefits of these hospitals include shorter wait times and reduced costs. In conclusion, the creation of virtual hospitals will definitely provide enormous and significant benefits to the healthcare system in the region, however, more studies not to explore the boundaries and disadvantages related to these hospitals.