Palms of Pasadena Hospital was founded in January 1963 as an 80-bed nursing home and convalescent center by an investor group consisting of physicians and others. By November of that year, the facility was licensed as an acute care hospital. The hospital facility has grown in three phases. The original facility expanded to 269 licensed beds in 1966, and again in 1975 to more than 300 beds when the Bayview area of the facility was opened to the public. In 1982, a Radiation Oncology Center was added.

Today Palms of Pasadena provides general acute care medical/surgical services with several key Centers of Excellence including the Joint Replacement Center, the Continent Ostomy Center, and the Sleep Disorder Center. The campus also includes two medical office buildings which house the Outpatient Diagnostic Center and the Outpatient Rehabilitation Center.