The fire, which broke out at about 3.00 a.M. Local time in the one-story hospital in the Ramenskoye settlement on the outskirts of Moscow, was caused by a short circuit, Russian news agency RIA Novosti quoted police officials as saying.
"According to preliminary reports, 38 people died, including two medical personnel," a Health Ministry spokesman, Oleg Salagay, was quoted as saying by the news agency.
"Three people survived - a medical nurse lead two patients out of the burning building," Salagay said, adding that a total of 41 people were believed to be in the building at the time of the fire.
Firefighters found the bodies of 12 people, according to Itar-Tass news agency. Four were found near the exit of the hospital, while eight others were found in the wards.
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The hospital had bars on its windows, preventing people from escaping. Most of the bodies were found still in their beds. There were patients with acute psychosis, alcoholics, a drug addict and patients with schizophrenia, a doctor said.
"The fire started when they were asleep," Itar-Tass quoted a law enforcement source as saying.
The Emergencies Ministry has published a list of 41 patients and medical staff who were inside the facility when the fire started. The patients ranged in age from 20 to 76.