Often referred to simply as the Bowen Road Hospital, the first generation hospital was a 150 bed hospital constructed of red brick. It consisted of two blocks, each of 3 storeys, configured with wards and a central administrative block and had commanding views of .
During the , a portion of the Hospital was used for the care of . It continued in use until 1967, when it was turned over to the colonial government. The facility was moved to a site in Kowloon.
Between 1967 and 1972, it became the temporary location for the new Island School, which had obtained a 5-year lease from the Government. The east wing is now home to the Carmel School, and the occupied the west wing of the building from 1994 to 1999, when the Canadian school moved to new premises in Aberdeen.
Former hospital buildings on the adjacent site on Borrett Road, vacated in 1969, were used by the Chinese International School during the 1980s. 10 Borlett Road became the first home to the West Island School, from 1991 to 1994, and is being used by the Island School.
In the 1986 Mid Levels Plan, the site was zoned to become open space. In May 2001, the Town Planning Board re-zoned it to "government, community and institutional use" on the recommendation of the Planning Department and the Antiquities and Monuments Office, allowing the buildings to be preserved.
In 1967, a new 15-storey British Military Hospital was opened in the area, on a site to the east of the , to replace the Bowen Road Hospital. It used to provide medical treatment for servicemen and their dependents, and returning soldiers from .
When the British armed forces suffered a 15% reduction between 1975 and 1978, the Government proposed to use the hospital as an overspill for the Queen Elizabeth Hospital, which was in undercapacity. It would buy bedspace and treatment from the Hospital, but the high cost was criticised as lacking in transparency, and unreasonably high.
Within the , there was a consensus to demolish it. It was officially closed on June 30, 1996 as the British Garrison scaled down from more than 10,000 personnel to about 3,000 due to the approach of 1997.
Between 1996 and 1999, the Hospital was turned over to the Philippine Consulate-General as a refuge for dismissed domestic workers, for a token lease of HK$1.
The 7.4 hectare site had an estimated market value of 5.6 billion in 1995.