The hospital was founded by Richard Henry Wood DL, a wealthy stockbroker who was originally from Manchester, but who had lived in Rugby for 21 years, and his wife, Elizabeth Wood (née Hatton)[1][2] to replace an earlier nursing home in Castle Street, which had opened in 1869, and was no-longer adequate for the town's needs.

[3][4] Named after the Hospital of St Cross in Winchester,[4] it was designed by Henry Wilson, of Gray's Inn Square,[5] and opened in July 1884.

[4] In 1932 a sun pavilion was added on the south side, when fresh air was viewed as an effective treatment.

[16][17] In 1997, the hospital's Accident and Emergency department was downgraded to a minor injuries unit; there has been a campaign locally to restore full A&E services to the hospital, citing a growing local population, and the long journey to the nearest A&E department in Coventry, some 12 miles (19 km) away.

[21] Sharing the site of St Cross Hospital is Rugby Myton Hospice which was opened in 2002.