During his visit to the state, President Buhari will also commission some other projects.
The hospital has 60 beds and consists of units for Accidents & Emergency, Intensive Care, Surgeries, Radio Diagnostics, Renal Dialysis, Opithalmed, Dental, Phsiotheraphy and Maternity.
The president arrived the state on Thursday morning and was received by Bauchi governor, Muhammed Abubakar, at the Sir Abubakar Tafawa Balewa International Airport.
While commissioning the hospital, the president said it would greatly help the nation's counter insurgency efforts.
He said, "The air force remains a key component of the armed forces in its constitutional role of providing aid to civil authorities across the country. These efforts include surveillance, security airports, emergency assistance and resettlement of displaced people. These laudable efforts will continue in the interest of the country as it is our strategic goals to widen civil-military relationship.
"Counter insurgency efforts are bound to be enhanced by the location of the hospital because of its proximity to the theatre of operation."
During his visit to the state, President Buhari will also commission some other projects, especially roads, and flag off the distribution of 500 tractors to farmers in the state.
The state government had earlier declared Thursday a work-free day to give all Bauchi residents a chance to welcome the president.