The story of hynotherapy is perhaps the most disturbing, as well as one of the saddest, in the history of medicine. I has offered the human race what is potentially an immensely valuable therapuetic weapon and is still neglected,  in spite of evidence in its favor. - Brian Inglis

The history of hypnotherapy dates back as far as recorded history. It has been practiced all over the world. Healers, shamen, witchdoctors, wise women, tribal doctors, Hindu fakirs, Indian yogi and Persian magi have all practiced forms of hypnotherapy, although it was known under many different names. It has been recognized through time that there is a strong mind-body connection, and that health and heeling, removal of negative feelings and phobias, general well being and performance enhancement can be attributed to hypnotherapy throughout the ages. The history of hypnotherapy also indicates that spiritual leaders, priests, healers and philosophers were the practitioners of early hypnosis.  Moses, Jesus, Mohammed, Genghis Khan, Richard the Lionheart and Napoleon all practiced forms of hypnosis.

There are indications that a hypnotic element entered into ancient tribal medicine and that it was used in the Aesculapian temples of healing in ancient Greece. The term `hypnosis` is derived from the Greek word `hypnos`, meaning `sleep.' The Greeks and Romans had a strong history in hypnotherapy.  They used The Aesculapian Sleep Temples, where patients would be put in a trance-like sleep for healing.  The priests would prepare their `patients` and  interpret their dreams. This practice was called Asclepian dream healing. The Greeks and Romans believed in the bond of physical and emotional health was necessary for well being.

The Egyptians were utilizing the healing method of `incubation`, or `temple sleep` as early as 3,000 B.C. The priests considered the `sleep` to have special healing powers and that the person in the sleep was in an enlightened state.  The Temples of Imhotep were popular for `sleep therapy` and `shrine sleep` which is still found in some areas of Africa and the Middle East.

Similarly, the Hebrews utilized breathing exercises, chanting and meditation to produce an `ecstasy like state` which they called Kavanah. Their practices were similar to what we now know as `self hypnosis`.

Chinese medicine recognises over 5000 years of hypnotic relationship between healers and patients.

But the first clear demonstration of its powers in modern times came as a result of experiments conducted by some of Franz Mesmer’s disciples two centuries ago. They found that they could relieve, and often remove the symptoms of illness in mesmerized subjects. In particular, they could banish pain.

Austrian physician Franz Anton Mesmer (1734-1815) was regarded as the father of hypnotherapy.  However many dispute the fact that he even practiced hypnotherapy with his subjects, but introduced his theory of animal magnetism, including the passing of hands over parts of the subjects body, which would effect a cure. His subjects believed he was transferring a magnetic force or invisible fluid into them that would travel around their bodies and dispel illness.  He wrote papers concerning magnetic influences on the movements of the sun, moon and planets and on human health. The word `mesmerized` is derived from Mesmer`s name. Mesmer achieved documented cases of curing blindness, paralysis and headaches. Some people believe his subjects practiced their own style of self hypnosis while Mesmer practiced magnetism. However the medical community at the time were not convinced. He was accused of fraud and his techniques were called unscientific.  Whether he practiced hypnotherapy directly or his subjects underwent a form of self hypnosis, he is included in the history of hypnosis by many scholars.

Around this general time, Scottish surgeon James Braid (1795-1860) was practicing in England. He became aware of many of his patients experiencing a trance like state when they kept their eyes focused on the one spot for a period of time. He introduced the words `hypnosis` and `hypnotism` to the medical fraternity. He stated that hypnotism was a scientific and psycho-physiological discipline.  James Braid and another Scottish surgeon named James Esdaile (1808-1859) validated the use of hypnosis prior to surgery. They recognized the benefits for patients and were among the first doctors to have hypnosis accepted by their medical peers.

During the mid 1900s Milton H. Erickson (1901-1980) was a well known psychiatrist who used hypnotherapy in his practice.  In 1958, both the American Medical Association and the American Psychological Association recognized hypnotherapy as a valid medical procedure.  Since 1995, the National Institute of Health has recommended hypnotherapy as a treatment for chronic pain.

The Proof is in the pudding:

Making medical history in a Milan Hospital in 1961, 19-year-old Pierina Menegazzo manages a smile as she jokes and chats while surgeon Dr. Mario Maiocchi removes her appendix. A tape recorder records her light-hearted talk during the appendectomy. Before walking into the operating room, Pierina was hypnotized. A group of newsmen watched as she became one of the first patients in Italy to undergo surgery with "hypnotic anesthesia."

In now what would be considered a disgustingly unethical experiment, a condemned prisoner in 1750 Copenhagen, was made to believe that he was bleeding to death. He was blinfolded, small pricks were made on his skin and some water taps were turned on. He was told he would bleed to death and he had no reason to disbelieve it. As a result of the suggestion, the poor wretched man died.

In 1850, after watching a man have his leg amputated while in mesmeric trance, the physiologist Marhsall Hall complained that the man must have only been pretending not to feel pain and that if he had really been unconscious, his other leg would have been seen to twitch in sympathy.

In 1952, the British Medical Journal reported of a case of a boy, who the press called "Rhino Boy" suffering from congenital ichthyosis, a condition that causes a warty layer and has a foul odor stated that all forms of standard treatment had failed. He was taken to  hospital that specialized in plastic surgery techniques. None of the grafts worked. As a last resort one of the doctors suggested hynotism. The boy was put into a trance and told the condition to his left arm would clear. In a few days the scaly layer on the arn softened and fell off, showing normal skin underneath. After the rest of the boy's body healed, appearance restored and smell gone, he was able to return to a normal social life.

Resources:

http://www.hypnotherapyandcounselling.com/counselling/24-the-history-of-hypnotherapy-2

The Healing Trance by Brian Inglis, Mysteries of Mind, Space and Time, Vol. 12