Initially opened as a maternity hospital to address the growing need for neonatal services and the training of midwives and obstetricians, Tsan Yuk was founded with the aim of meeting these demands.

Dr. Alice D. Hickling, recruited by the London Missionary Society as the first foreign female doctor in Hong Kong, was appointed as the hospital's director.

Recognizing the strong interest among women in Hong Kong to become professional midwives, she proposed providing training through the hospital.

[citation needed] By the early 1950s, Tsan Yuk was experiencing bed shortages and limited places for patients.

On 13 June 1955, Sir Alexander William George Herder Grantham held the opening ceremony for the new Tsan Yuk Hospital.

Activities included workshops, seminars, exhibitions and guided tours, all of which embodied the theme of sustaining traditional practices in a modern world.