The hospital began in 1911 as a Chinese medicine hospital operated by a local charity body. After the hospital merged with Tung Wah Hospital and Tung Wah Eastern Hospital to form the Tung Wah Group of Hospitals, Kwong Wah gradually became a full scale hospital in both Chinese and Western medicine.
In the early days, the hospital offered medical service free of charge to those who could not afford it, with funding provided by local merchants. These traditions continue today.
The formly Main Hall Building of Kwong Wah Hospital is preserved and housing the Tung Wah Group of Hospitals Museum.
Ma Ying-jeou, the current President of the Republic of China, namely Chinese Nationalist Party, was born in this hospital in 1950. This information is displayed in the Museum in the Hospital.