The hospital was built around almshouses for six poor males endowed by Sir John Port in 1556. The number of poor males which could be accommodated was increased to twelve in 1622. The 'Hospital' was run as a charity by a corporation and a resident Master. The modern hospital, which started life as an isolation unit in 1902, was by 1949 in use as a rehabilitation centre. By 1979, it was catering for the young chronic sick and geriatric patients and the terminally ill, as well as those recovering from accidents and serious operations run by Derbyshire Area Health Authority.
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