In the early years, Powell River's first hospital was located in a tent which was then replaced with a bunkhouse. After the arrival of Dr. Henderson in 1911, St. Luke's Hospital was completed in 1913.The hospital was located next door to Dr. Henderson's home.

With Powell River's newfound sophistication, St. Luke's (now known as the Kenmar Building) was finished in a different style or character on each of its three floors. For example, the third floor was painted in a flat white with a sharp ' hospital white' trim. The overall effect gave Powell River's first professional hospital a distinct character.

Architecturally the building is significant for the manner in which it was designed, as the hospital replicates two of the Powell River Company's original apartment blocks, both of which have now been demolished.