The doctors were presented a cash award of Rs 50,000 each and a citation while the paramedical personnel were given Rs 20,000 each and a citation.
Speaking on the occasion, Dikshit assured there would be no dearth of funds for expansion of health services in the city.
She said government has planned to increase the number of beds in its hospitals by "one-and-a-half times within two years".
The Chief Minister said the government hospitals are under stress as huge number of patients from neighbouring states come to the city for treatment.
Addressing the function held at Maulana Azad Medical College, Health Minister A K Walia said the government was expeditiously filling up vacant post of doctors and nurses as part of efforts to improve health care delivery.
He exhorted all medical employees to work with full dedication to serve ailing people and make Delhi a disease free city.