The hospital was opened by the English missionary group London Missionary Society on 17 October 1922. It was originally opened as a maternity hospital, with the intention to meet society's increasing demand for neonatal services, including the training of midwives and obstetricians. The London Missionary Society recruited the first foreign female doctor in Hong Kong, Dr. Alice D. Hickling, and appointed her as the director of Tsan Yuk. In her development of obstetric services, she quickly recognised the abundance of women eager to become professional midwives in Hong Kong, and had the notion to provide such training through the hospital. She suggested this to Dr. S. W. Tso (), Chairman of the Chinese Public Dispensary Committee (), and he supported her proposal. Thus forward, Tsan Yuk became one of Hong Kong's foremost maternity teaching hospitals.