It began as a cottage hospital located in Willoughby Rd, Crows Nest. The foundation stone was laid by Sir Henry Parkes, 18 June 1887. The hospital was opened with accommodation for fourteen patients, with the requisite office and rooms for the medical and nursing staff. Medical staff numbered four honorary doctors and nursing staff numbered five. The site of the original hospital was bounded by Willoughby Rd., Albany and Holterman Streets and Zig Zag Lane. The old site is now a busy part of the commercial centre of Crows Nest. In 1902, it opened on its current site at St Leonards, with 48 beds available for patients. New departments and wards were added over the next fifty years, reflecting the increasing diversity and professionalisation of health care.