English: Rimbey, Alberta 1932.

The hospital was called St. Paul's Hospital and was owned by the Archdiocese of Edmonton. The Order of Benedictines ran the hospital for the archdiocese until they had to return to the United States due to their declining numbers. Archbishop Henry Joseph O'Leary then asked the Sisters of St. Joseph of the Diocese of London to take over operations. Sisters Loretto Traynor, Liguori O'Dwyer and Lenora Doyle were the first Sisters from the congregation to work at the hospital. They were all trained nurses and were known for their success managing the day-to-day operations despite financial difficulties. This was because there was no financial support from the provincial government for private hospitals at this time. By 1945, the hospital had 30 beds.

In the 1940s, it became evident that a new and larger hospital was needed. A district vote was held to decide whether the new hospital should remain a Catholic hospital or become a municipal hospital. The vote was in favour of a municipal hospital. The Archdiocese felt this was for the best because they were having trouble financing the hospital without provincial support and thought it was in the best interests of the community to ensure quality of healthcare by relinquishing ownership. Upon the transition of ownership and the withdrawal of the Sisters, they were thanked by the community for the work they had done. The Sisters returned to Edmonton or to London and were reassigned to other positions.