Tsan Yuk Hospital was originally located at the cross-section of Western Street and Third Street in Hong Kong's Sai Ying Pun area. The land on which the hospital was built was donated by the government and the $94,000 construction fee was donated by Mr. H. M. H. Nemazee, Sai Ying Pun Kai Fong Committee (西營盤街坊會) of the Fishmongers' Guild (魚販商會) and Fruit and Vegetable Sellers' Guild (蔬果販商協會). The thirty beds were donated by Tung Wah Hospital, another government hospital located in neighbouring Sheung Wan.