Tsin Wan (with the meaning of “shallow bay”), the original name of Tsuen Wan, was a small town along the coast and hills of West New Territories with low population and poor transportation. The local residents mostly engaged with fishing and farming. In the mid-20th century, the Hong Kong Government planned to develop Tsuen Wan as one of the “Satellite Towns”. Since then, Tsuen Wan was developed rapidly. Influx of working labours and grassroots led to insatiable demand of medical facilities, as there was only one clinic in the district, the “Tsuen Wan Trade Association Residents Clinic”. Residents in Tsuen Wan could only go to Kowloon for better medical treatments.
On 15 June 1959, Mr. Yip Tak-fan, the Chairman of Tsuen Wan Trade Association, proposed to build a local hospital to cope with increasing medical demands. He lined up local leaders and businessmen, Mr. Chow Kwan-shing, Mr. Hui Tim, Mr. Yau Tze-tin and Mr. Ho Chuen-yiu, and started the preparatory work for the establishment of Yan Chai Hospital.
In early 1962, the Tsuen Wan Trade Association formed the "Organising Committee for the Founding of Yan Chai Hospital". Unfortunately, Mr. Yip Tak-fan fell sick from overwork and passed away on 25 August 1962. Mr. Deacon Chiu Te-kan was elected to the Chairman of the Tsuen Wan Trade Association and carried on Mr. Yip’s unfinished mission. In that period, Tsuen Wan Rural Committee provided great assistance for the establishment of Yan Chai Hospital.
The Board of Yan Chai Hospital was founded in 1962 and Mr. Chiu was the founding Chairman of the Board. In the same year, the Board officially applied for land allocation from the government for the construction of Yan Chai Hospital.