Knoxville’s first hospital opened in 1935 and was owned and operated by Dr. R.V. Mater. Dr. Mater located his medical practice in a large house on the corner of 7th and Montgomery Streets. He used the building to provide the community with a doctor’s office and a small hospital. Five years later on March 11, 1940, the 27-bed Collins Memorial Hospital was opened. The building and grounds were deeded to the City of Knoxville by the Collins family in memory of Lafe Saxton Collins (1865-1926) and Rema (Fry) Collins (1892-1938), the father and wife of Jackson (Jay) Lafayette Collins (1893-1973). In 1963, Collins Memorial Hospital was purchased by the Mater Clinic Group. Following the purchase, a building project began and a new wing to the hospital was opened in July of 1966. The new wing increased the capacity of the hospital to 50 beds.

In the later 1970s, planning began for a new community hospital. A foundation was formed and fundraising began to build and equip the new facility. Construction began and Knoxville Area Community Hospital was completed and ready for business in February of 1981.

In December 2002, Knoxville Area Community Hospital & Clinic received the official designation as a Critical Access Hospital. The Critical Access program provides enhanced Medicare reimbursement for small rural hospitals and became a safety net for Iowa’s rural hospitals. As a Critical Access Hospital, Knoxville Area Community Hospital operates with 25 inpatient beds.

In 2003, the Knoxville Area Community Hospital & Clinic Foundation was re-established to raise funds to help keep the healthcare system modern and responsive to the region’s needs. Since the re-establishment, the Foundation has purchased many pieces of life-saving equipment for the hospital and clinics and has helped with several remodeling and expansion projects.

In April of 2005, Knoxville Area Community Hospital & Clinic purchased the Pleasantville Clinic located in Pleasantville, Iowa.

In honor of the facility’s 25th anniversary in February 2006, Knoxville Area Community Hospital & Clinics began operating as Knoxville Hospital & Clinics.