The first Soldiers Memorial Hospital was located on Gates Avenue. Several cottage hospitals were in use until Veterans Dr. John A. Sponagle and Melbourne P. Neily gathered support for a proper hospital. The Cox residence on Commercial Street was purchased, moved to Gates Avenue and Soldiers Memorial Hospital was opened on Armistice Day in 1921.
Funds for the new hospital were received from local organizations, private donations and other sources. The Imperial Order of Daughters of the Empire undertook the supply of equipment for the operating room and maintained it over the years. The Women's Institute provided all the kitchen equipment and linens.
In 1936, a committee comprised of Dr. Braine, Annapolis, Dr. O. R. Stone, Bridgetown, and Dr. L. R. Morse recommended an addition to the total number of beds to 27. In 1946, it was decided a completely new and modern hospital was needed. The present hospital site was purchased in that year from Mrs. B. B. Gwillam. Construction of the new hospital began in 1960 and the hospital was officially opened on August 2, 1961, with 69 beds. The corner stone for the Soldiers' Memorial Hospital was laid by the Honourable Robert Lorne Stanfield on October 12, 1960.
The expansion to 99 beds was carried out in 1967. The former maternity floor was renovated to house 22 beds for Veterans Affairs Canada patients and the first patients were admitted on March 19, 1984. A new Veterans Affairs Canada wing was built in 1986.