The hospital was founded in the early 20th century by Henry J. Dart, a pharmacist from Montreal, who named it after his daughter Grace, who died of tuberculosis in 1898. The hospital opened its doors in 1907 and was a sanatorium for over 60 years. It had 101 beds.

In 2016, due to its dilapidation, the building, then called Grace Dart Pavilion, was closed and the beneficiaries were moved to 2 hospitals: at the Veterans Hospital of Sainte-Anne-de-Bellevue, in the west island, and at the Grace Dart Extended Care Center located on Sainte-Catherine Est, affiliated with the CIUSSS de l’Ouest-de-l’Île-de-Montréal.

Since its closure, the complex, owned by the Extended Care Center, remains vacant and its future remains uncertain, although it has been identified as a building of exceptional heritage value according to the City of Montreal.