The Hamilton Sanitarium was built in 1924 under the guidance of Dr. C.E. Chandler, Dr. D.B. Beach, and Dr. C.C. McMordie. The new four-story hospital was also the site of the Chandler, Beach, and Cleveland state accredited school of nursing. The first floor had classrooms for the students nurses with a fourth floor dormitory. The second and third floors had the doctors' offices, labs, surgery, and patient rooms. The Sanitarium was in continuous operation until 1939.

The hospital was used as barracks for pilots training at the Hamilton Airfield during World War II and was once again used as a hospital following the war until the Hamilton General Hospital was opened in 1958.