A group of far-sighted local citizens first met in 1974 to discuss the idea of opening a local medical clinic.  The medical clinic first opened in June of 1975 in the front of the Women's Club Building on Silver Street in downtown Lake City.

In 1990 a ground breaking ceremony for a new medical facility was held and in 1991 medical operations were transferred to the new facility at 700 North Henson Street.

The Lake City Area Medical Center began doing business under the Lake Fork Health Service District (a special taxing district) in 2002.  The LFHSD was created with the goal of stabilizing comprehensive health care service for the residents and visitors of Hinsdale County. It strives to expand the services and quality of care delivered.  The Board of LFHSD conceived of expanding the clinic at 700 Henson, and saw that goal through fund-raising, design, and construction.