A tuberculosis clinic opened in the municipality in 1895. In 1912 the original clinic expanded as more patients came to Heiligenschwendi. Beginning in 1902 the first of several hotels, restaurants and rental homes opened for visitors to the clinic or nearby Lake Thun and mountains. A hydroelectric dam provided electricity to the villages beginning in 1904. Tours of the lake began stopping at Heiligenschwendi in 1919. Beginning in the 1920s and into the 1930s better sanitation and public education led to declining tuberculosis rates, which damaged the local economy. A tourist office opened in 1933 and helped bring tourists back to the municipality and today there are four hotels in the community. The clinic gradually shifted from treating tuberculosis and by 1960 it was an asthma clinic. It became a rehabilitation center for heart disease and asthma and moved to new buildings in 1976. A treatment center for young drug addicts opened in 1981 in the Sonnegg area of the municipality.