Built just prior to 1835, it was purchased for $3,350 by a Dr. Cyrus Thomson who was widely known for his eccentricity being an herb doctor of the transient covered wagon type. His remedies were said to be of a severe nature. He nevertheless had a large practice and established the building as a private hospital from whence its title was derived. Gilding the distasteful aspect of the business, "signs in large letters" are said to have covered the facade. With the ever prosperous Erie Canal at its side, however, the structure soon was converted to a more orthodox store and saloon. Probably about the same time a portion of the building was removed to facilitate an-enlargement of the canal.

From an architectural viewpoint the colonnade is an amazing feature, showing the deliberate freedom the Revivalists employed in franking their buildings with the Greek signature. The entablature and the side gables complete the motif with irregular spacing of the columns amplifying the design through a rather pleasing rhythm, although as a whole the building is not an outstanding Greek Revival design. As a complement to the brick construction, the columns are of Vermont marble. Sent by way of the canal, these columns at that time were considered an extravagant waste with Onondaga stone so close by.