Pagosa Springs Medical Center services and facilities are the result of decades of local volunteerism, generous giving and dedication to caring for the health of the community. Until the opening of PSMC, the nearest hospital was in Durango, a 60 mile drive.

PSMC was originally formed in 1981 to assure healthcare and ambulance services to Archuleta County and the portions of Hinsdale and Mineral Counties south of the Continental Divide. PSMC (under its legal name the Upper San Juan Health Service District) began providing ambulance and EMS services in the late 1980s. It is a common misconception that Pagosa Fire provides ambulance service, but PSMC is, and always has been, the only provider of ambulance services in Archuleta County. The hospital was constructed in 2007 and began operations in 2008. As noted on the chart of milestones, PSMC has continually expanded its services to meet the needs of the community it serves.