Originally built in 1864 as part of Chorlton Union Workhouse, the hospital was one of the largest and first if its kind, with Florence Nightingale quoted as saying "... your hospital plan will be one of the best, if not the best, in the country" when writing to the architect Thomas Worthington–upon initial observation of the plans. After a merger with Manchester and Prestwich Unions in 1915, it was the local authority hospital for South Manchester.

During the First World War, the workhouse and hospital wards at Nell Lane were taken over by military authorities and turned into a military hospital, temporarily changing its name to Nell Lane Military Hospital, and was later used for German prisoners of war. To cope with numbers of casualties, marquees were erected between wards. Various improvements were made during the war, including a new x-ray room.

Now named Withington Community Hospital, it is run by the University of Manchester NHS Foundation Trust.