In 1947, the Peninsula Health Care District was established. At the time, voters created the District and a tax base to build and operate what is now Peninsula Medical Center. As a result, Peninsula Hospital was built in 1954 using public funds and private donations, and for more than 30 years the District Board made all of the hospital's operational decisions. In 1985, the Board voted to lease the hospital, including all operations, to Mills-Peninsula Health Services, a private non-profit group that owned and operated Mills Health Care Center in San Mateo. Peninsula Health Care District has continued to serve the community by responding to local health needs, allocating resources for programs that enhance the health of the District's residents, and as the lessor of Peninsula Medical Center.
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