The first hospital in Rushville was a private hospital built by Dr. John Sexton in 1892. It was built on Fifth Street on a lot adjacent to the Sexton Home at Fifth and Main Street. The hospital was one of the first in southern Indiana and was the only hospital between Hamilton, Ohio and Indianapolis, Indiana.
In 1902, this small private hospital was replaced with a two-story building on the same location. When Dr. Sexton retired in 1929, he sold the building to the city.
Upon his return from military service, Dr. Frank Green, Sr., opened a six-bed hospital in 1919, above the office which he shared with his brother, Dr. Charles Green, DDS. In 1944, during World War II, the Green Hospital closed.
The present Rush Memorial Hospital was opened in 1950. This limestone building included 52 beds and 16 bassinets. In 1971, the hospital completed an expansion project that consisted of an emergency department, modernized ancillary service areas, and a kitchen.