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The hospital was founded around 1200 as an almshouse and a place of care for the sick, and was run according to the rule of St Augustine. It had a role in the foundation of Peterhouse, which left the hospital with a collegiate chapel.
Two hundred years on though, it was not considered to be run in an appropriate manner, and at the time of Lady Margaret's death in 1509 plans were well under way for the transformation, which was to be funded by an endowment from Lady Margaret. However, as their was no provision for the foundation in Lady Margaret's will, it was not until 1511 that Fisher got the consent for the dissolution of the hospital and the foundation of St John's College.
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