In 1935, the Fenwick Sanitarium was renovated and became the Palms Hospital with forty (40) private patient rooms. Each room had a lavatory, a brass bed and a mirrored dresser. Majestic stained glass transom and cut glass front door gave the Palms Hospital a look of distinction. A group of physicians purchased the Palms Hospital in 1945, and operated the hospital for more than twenty (20) years.
On February 6, 1962, Hospital Service District No. 2 was created by the Police Jury of Vermilion Parish to provide a new parish-owned hospital for the community, and the Board of Commissioners was appointed. The hospital was funded by the now expended Hill-Burton Act and a local bond issue. A plot of approximately ten acres was procured and the building was started in the fall of 1963.
Abbeville General Hospital opened its doors to the citizens of Vermilion Parish and surrounding areas in February 1966 as a community-based, non-profit healthcare provider. After numerous expansions, renovations, and modernization projects, AGH continues to provide quality healthcare services on the same site that was dedicated to the purpose in 1966.