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Montague City was a tiny village, first settled in 1792, when it became a manufacturing center in 1885. Taking advantage of the water power available at the terminus of the reconstructed Turners Falls canal, which emptied into the river at Montague City, the Montague City Rod Company set up operations there. Other manufacturing firms moved in and the town grew significantly. In 1900, Barney Farren, a leading citizen of the town, pushed for the creation of a community hospital, and the facility was later named after him. By the early 1950s the front porch was rebuilt, and columns, a railing, and a statue were added. Farren Memorial operated as an independent facility until 1984, when it was joined with Providence Hospital and Mercy Hospital, both western Massachusetts facilities, into Providence Systems and then Sisters of Providence Health Systems. Farren Memorial Hospital operated as a general care facility until 1988, when it was converted to a long-term care facility.

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