The hospital was originally an initiative of a commission formed by distinguished members of the numerous Italian immigrant community of the city.

The hospital was almost finished in 1865, when the national government asked that it be set aside to treat wounded Brazilian soldiers of the Paraguayan War.

In 1867 the works were resumed, only to be stopped once again by an epidemic of cholera, which prompted the government of the city of Buenos Aires to requisition its services until 1869.

The management of the hospital struck agreements with philanthropic associations for the attention of other immigrants besides the Italian community, and in time the facilities proved too small.

On December 15, 1889, the foundation stone of the new Hospital Italiano was laid, on a city block delimited by Gascón, Potosí, Palestina and Perón streets, in the borough of Almagro.