The Marine-Hospital Service was an organization of Marine Hospitals dedicated to the care of ill and disabled seamen in the U.S. Merchant Marine, U.S. Coast Guard and other federal beneficiaries.
The Service was created by the act of the 5th United States Congress, which was signed into law on 16 July 1798 by President John Adams. The Act required the Department of the Treasury to "provide for the relief and maintenance of disabled seamen." This Act led to the formation of several loosely controlled hospitals at sea and river ports all across the United States, which was officially the Marine-Hospital Fund. The Act specified the revenue for the Hospital Fund to come from the merchant seamen. The Congressional Act of 1798 was signed into law by President John Adams. It created a tax of 20 cents each month to be withheld from seamen’s wages for support of marine hospitals. The money was paid to the U.S. Collector of Customs. The Act was expanded in 1799 to include all "officers, seamen and marines of the navy of the United States". This practice continued until 1870, excepting one year from April 1837 to 1838. This series of hospitals to care for merchant seamen was based on the British practice of establishing hospitals to care for sailors and merchant seamen. Prior to its union with Scotland, the Kingdom of England established its first hospitals in 1588, shortly after its victory over the Spanish Armada. The Marine Hospital Fund was a unique and early mechanism to provide the first publicly funded health care and disease prevention federal agency in the United States.
Following the Civil War, public outcry and scandal surrounded the Marine Hospital Fund. In 1869, Dr. John Shaw Billings--a prominent Army surgeon—was appointed to head an investigation of the Marine Hospital Fund. Dr. Billings found the hospital fund to be inadequate and completely unorganized. In 1871, the Marine Hospital Fund was formally reorganized as the Marine Hospital Service, under the direction of Dr. John Maynard Woodworth. Dr. Woodworth was appointed to the Service as "Supervising Surgeon." He reorganized the service into a disciplined organization based on his experience in the Union Army as a surgeon. Dr. Woodworth required his physicians to be a mobile work force stationed where the service was in need, and he mandated the daily wear uniforms. This eventually led to the creation of the modern-day Public Health Service Commissioned Corps. Dr. Woodworth, using Army-style heraldry, created the Marine Hospital Service fouled anchor and caduceus seal which is used to this day by the Public Health Service. In 1873, Dr. Woodworth’s title was changed to "Supervising Surgeon General," a forerunner of the modern-day office of Surgeon General of the United States.