Pastor of St. Mary's Church, Rev. Thomas F. Conlon met with the newly appointed bishop of the Toledo Diocese, Rt. Rev. Joseph Schrembs, to discuss building a charity hospital for the community. Community leaders and physicians promoted the necessity of a hospital that cared for all people regardless of race, creed, or color. Seven acres of land were purchased from Miss Emma J. Bowe on West Market Street for the construction of a four-story, fireproof brick building. Designed by local businessman George W. Netcher, the new hospital cost approximately $75,000. At the hospital's dedication on October 26, 1913, Bishop Schrembs praised the people of Tiffin saying, "I appealed to the public-spirited citizens and my appeal did not fall upon deaf ears, as this building testifies."
Aware of the fine hospital work performed by the Sisters of Mercy, Bishop Joseph Schrembs requested that three Sisters from their convent in Grand Rapids, Michigan be sent to administer the new hospital and convent. Mother Bernardine McMullen, Sister Anthony McMullen, Sister DeChantel Lyons arrived in Tiffin on May 11, 1912. Founded in Dublin, Ireland in 1831 by the Venerable Catherine McAuley, the Sisters of Mercy's calling is to care for those in need. At the dedication of Mercy Hopital, Bishop Schrembs remarked, "It is not enough to have a building, but there must be a competent corps in charge of it. The Sisters have proven themselves devoted to all. Their duties are prompted by the truest charity."