The Foundation was chartered in 1922 to provide healthcare on Galveston Island through the support of the John Sealy Hospital and related medical buildings. Currently, the University of Texas Medical Branch (UTMB) operates the John Sealy Hospital, Jennie Sealy Hospital, and the R. Waverley Smith Pavilion.

The Foundation supports UTMB in a variety of ways, including providing and maintaining clinical and other properties on the UTMB campus, endowing academic chairs for various healthcare specialties, advocating for UTMB and providing grant funding to ensure Galveston citizens receive excellent health care.