The Hospital was founded by Royal Charter in 1594 and an almshouse was built on land donated by Sir John Hawkins, Treasurer and Control of Elizabeth 1's Navy. The Hospital housed 'maimed and mangled mariners and needy shipwrights' who had fought in the Armada.
When Chatham Dockyard closed in 1984, the Governing Instrument amended the criteria for residency at the Hospital so that today, any applicant: “shall be needy or disabled and have served in the Royal Navy, Royal Marines, the Women’s Royal Naval Service, Queen Alexandra’s Royal Naval Nursing Service or have served in and have been mobilised for active service in the Reserve Forces of those bodies. Or have been employed in any of HM Dockyards or Naval Bases on the construction, maintenance, refitting or repair of any of HM Ships and Vessels, or have served in the Army; Royal Air Force; Royal Fleet Auxiliary or British Merchant Service”.