The victim was one of two people reported to have suffered life-threatening injuries after being struck outside Withington Community Hospital in the south of the city.
Witnesses said the car careened through a lamp post and into a barrier, injuring several people.
As well as the two people with serious injuries, there are several other "walking wounded", according to Greater Manchester Police.
Several people have been hurt after a car ploughed into a crowd in Manchester
A spokesman said: "It is a collision between a car and a number of pedestrians on the carpark of the hospital.
"There might be a number of more walking wounded people. The driver is in his 80s. He stayed at the scene and is speaking with police.”
Witnesses say at least two people were treated for injuries at the scene
It had also smashed barriers and lamp posts. Two people were on the ground receiving CPR.
A passer-by told the Manchester Evening News: "I didn’t see what happened but got there immediately afterwards and saw a Ford Focus which had knocked over at least two people.
“It had also smashed barriers and lamp posts. Two people were on the ground receiving CPR."
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The car has now been removed from the scene for analysis
The car has now been taken away for analysis. Two tyres on the car were burst and there was also serious damage to the rear of the vehicle. Photographs showed debris scattered around the scene.
A North West Ambulance Service spokeswoman said: “We are still on the scene. It is a road traffic collision involving a vehicle and a pedestrian.
The incident occurred outside Withington Hospital in Manchester
“We sent a rapid response vehicle and a couple of ambulances.”
It is not yet known whether the two victims were patients at the hospital.