In 1967, the people of the city approved the issuance of City Bonds and other funds were raised from individuals, families, and organizations throughout the area that would be served by the new hospital. The governing body of the hospital was called the Gothenburg Hospital District, representing an area of 536 square miles. Voters elected its five members. Gothenburg Memorial Hospital first opened its doors in October of 1969.

The Gothenburg Family Practice Associates Clinic was attached to the hospital in 1975. The hospital board at the time helped advocate for the building of the clinic.

A wellness center opened to the community in 1997 for a nominal fee, and later in 2007 a new rehabilitation center was added.

In 2004, the hospital completed a $3.5 million, 7,460 square-foot addition, and a 15,850 square-foot renovation project. In 2011, a new $3.4 million, 17,000 square-foot physician clinic was completed to bring state-of-the-art facilities to Gothenburg.

Gothenburg Memorial Hospital completed another big construction project in 2018. With an increase in the number of patients in terms of surgical volume, in-patients, and labor and delivery, the facility had yet another need to renovate and expand. Overall, the hospital size increased from 63,000 square feet to 97,000. Improvements included a new patient wing with 12 beds; central nurses station; inpatient pharmacy; medically integrated YMCA and a new dietary center; renovation of the existing surgery center and the addition of two operating rooms; expansion of the clinic, admitting support space, lab and combined wellness, physical therapy, and cardiac rehab department.