LeGrand S. DeGraff founded DeGraff Memorial Hospital in 1914. His philanthropy and civic service sparked the founding of the hospital in part because of the need for hospital facilities in the expanding Tonawandas, as the nearest hospital care was in Buffalo. When LeGrand DeGraff and his associates agreed to foot the entire bill of $37,578 for a brand new hospital, DeGraff Memorial became a reality.

There were 2 conditions surrounding the opening of the hospital. First, the indigent of the community were to receive free care, and the two cities, Tonawanda and North Tonawanda, were to maintain the hospital properly. Second, the hospital was to be named in memory of DeGraff's father James H. DeGraff.