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Krankenhaus vs. Spital

The German words Krankenhaus and Spital both translate to hospital. The primary difference between them is not in their meaning but in their regional usage.

Krankenhaus

A2
This is the most common and standard term for hospital throughout Germany. It is the default word used in news, official documents, and everyday conversation in most of the country, especially in the northern and central regions. Its literal translation is house for the sick.
Der Krankenwagen brachte den Verletzten sofort ins nächste Krankenhaus.
(The ambulance immediately took the injured person to the nearest hospital.)
Sie arbeitet als Ärztin in einem großen Krankenhaus in Berlin.
(She works as a doctor in a large hospital in Berlin.)
Ich muss meine Oma im Krankenhaus besuchen.
(I have to visit my grandma in the hospital.)
Das städtische Krankenhaus wird nächstes Jahr modernisiert.
(The municipal hospital will be modernized next year.)

Spital

B1
This word also means hospital but its use is geographically specific. Spital is the standard and predominant term in Switzerland and Austria. It is also commonly used in Southern Germany, particularly in Bavaria and Baden-Württemberg. In other parts of Germany, it might be understood but would sound regional or slightly archaic.
Nach dem Skiunfall wurde er ins Spital in Innsbruck geflogen.
(After the skiing accident, he was flown to the hospital in Innsbruck.)
Das Kantonsspital in Zürich ist international bekannt.
(The cantonal hospital in Zurich is internationally renowned.)
Mein Onkel aus München sagt immer, er geht ins Spital.
(My uncle from Munich always says he is going to the hospital.)
Das alte Heilig-Geist-Spital ist heute ein Museum.
(The old Hospital of the Holy Spirit is a museum today.)

Summary

In essence, the difference is regional. Use Krankenhaus as the default term for hospital, as it is universally understood and standard in most of Germany. Use Spital when you are in or referring to contexts in Switzerland, Austria, or Southern Germany, where it is the more common term.