South Peninsula Hospital is a non-profit hospital that was founded in 1956, then as a three-bed PUD (public utility district). It has grown over five decades into a state-of-the-art hospital licensed for 22 medical beds and 28 nursing home beds. The hospital is the result of a unique partnership between the Kenai Peninsula Borough (service-area tax support for the facility and capital investments), City of Homer (for the land), and SPH, Inc., (the non-profit organization which provides the healthcare).
The hospital is governed by a nine member Board of Directors. An elected Service Area Board provides public recommendation on capital spending and scope of services. The hospital employees over 300 local residents, and is the area's largest employer, contributing over $12,000,000 annually into the local economy in payroll alone. That, combined with service contracts, materials acquisition and leases, totals significant impact to the lower peninsula's well-being. It gets some support from the South Peninsula Hospital Foundation, Inc.