With students living in very close proximity to one another and the college having no place to isolate sick students, contagious diseases such as measles or mumps spread rapidly in the early days. Once a few students caught the disease it appeared as though the entire student body would contract it as well.
The State Board of Agriculture (the college's governing body) became concerned about the bad publicity for the school and decided to build a hospital. A small hospital was built next to Grand River Ave. on the site of the current day Union. It contained seven rooms, two bathrooms, and cost $3,500 to construct.

Source: The Spirit of Michigan State, J. Bruce McCristal