It was enacted during the reign of Elizabeth I and remained in force until the 20th century.

The Disabled Soldiers Act 1592 had permitted the bequest of lands and buildings to establish "houses of correction or abiding-houses" for the poor or for maimed soldiers, but as it had not been legally possible to establish a hospital without a specific royal grant, that Act had had limited effect.

As such, the 1597 Act was enacted, allowing any person wishing to establish a foundation to create it by deed at the High Court of Chancery; such foundations would be permanent.

However, a minimum endowment was required, sufficient to produce an income of £10 per annum.

But it was later revived and made perpetual by the Hospitals Act 1623 (21 Jas.