The Penetanguishene site has a culture rich in history and faith dating back to the very beginning of the healing ministry in Canada. In the heart of what is known as Huronia, French voyageurs traveled as early as 1610, soon to be followed by Jesuits missionaries who brought the gospel message and established their healing ministry, opening the first hospital in Ontario at Ste. Marie Among the Hurons.

In the early 1900's a diphtheria epidemic struck and the need for adequate hospital services and accommodations became clear. A small group of public spirited individuals along with the town's physicians saw their dream become a reality when on April 14, 1911 The Penetanguishene Hospital was incorporated. In 1912 a School of Nursing was established and continued in operation until 1929.

The hospital was a community resource to which the community was deeply committed. Records reveal that board members, physicians, auxiliary and townspeople contributed in a very real way, often providing personal services or "chipping in" to help pay staff wages. However, in spite of the commitment, the hospital's financial status remained precarious at best, and by the early 1940's the board recognized it couldn't continue.

The parish priest at the time, Monsignor Jean Castex was familiar with the health care apostolate of the Grey Sisters of the Immaculate Conception and on behalf of the town invited the Sisters to take over the operation of the hospital. Agreement was reached between the two parties and on Aug. 15, 1942 six Sisters arrived.

With the Sisters, came the promise to serve. It was to be a cooperative venture that united two cultures rich in community and service, and dedicated to the provision of health care in the community. The Sisters worked without remuneration and aided by a more buoyant local economy, the financial picture improved in a few years. While laboratory services, new equipment and a radiology service were added, it became apparent that services could not be maintained in the original facility and in 1946 plans for a new hospital began.

Local municipalities, service clubs, churches and private citizens contributed heavily in time, money and effort towards the success of the project and the new hospital was officially opened on July 25, 1954 - truly a modern health care facility to serve the municipalities of Penetanguishene, Elmvale and surrounding townships.

In 1953 the Grey Sisters agreed to operate the Hospital for an additional ten years, and in 1963 when financial viability was again a problem, the Sisters purchased the hospital from the town.

The advent of universal health care meant increased availability of services to the public with demands for expanded facilities and the hospital has been well able to meet these needs. Increased activity has resulted in two major expansions since 1954; the addition of a new emergency, outpatient and physiotherapy unit in 1973 and a chronic/rehabilitation unit in 1981.

In September 1992 the hospital was approved by the Ministry of Health to operate as a regional rehabilitation centre and 15 beds were reclassified for this purpose.