Palm Drive, founded in 1941 as a 15-bed acute-care hospital, is an independent, non-profit facility operated by the Palm Drive Health Care District. In 1974, the Hospital was reconstructed at its present site and in 1991 extensive renovations were completed. Palm Drive Hospital is licensed for 37 beds, five of which are intensive care beds and the remainder medical-surgical beds.

The Hospital provides a full range of primary acute care services including respiratory care, emergency care, intensive care and outpatient ambulatory care services.

The Hospital is supported by revenues from inpatient and outpatient services as well as by parcel taxes paid by residents in the Health Care District's service area. In addition, the Palm Drive Health Care Foundation, a nonprofit organization, supports the Hospital by seeking charitable bequests and directing fundraising activities.