The hospital was built in 1914 by Nurse Ethel Ragg who owned it until her death in 1936. The building was named Somerset House but for many years the hospital was often known as Nurse (or Miss) Ragg's Private Hospital. In 1922 it came under the management of Nurse Grace Wilson and was simply known as Somerset House. In 1935 it became Gloucester Private Hospital and in 1937 it was sold to the Sisters of Charity who turned it into a maternity hospital, known as St Vincent's Maternity Hospital. Kathlyn Gibson who was born at the hospital has written to say that:

... my aunt Zita Cloonan was a Sister of Charity who both resided for the most part of her life at St Vincent’s and assumed positions of responsibility both as Director of Nursing at St Vincent’s and Sister Administrator at St Vincent’s Private, succeeding Sr Fabian Elliott. Another aunt, Kath, was a tutor sister at St Vincent’s for most of her working life. They were responsible for getting my mother to come to Melbourne from country north east Victoria, to allow a top Obstetrician, Dr Frank Hayden, manage her care and my birth. ...
... My childhood memories of the interior of the hospital are vague except that there were flowers in the hall.  It has just come to me as I write,  Sr Fabian had a dachshund who lived in the yard at the side of the hospital and I’ve just recalled that the dog was named Lisa. How childhood memories are triggered!

The hospital has been demolished to make way for a modern medical services building.