Lahey Clinic was founded in Boston, Massachusetts in 1923 by world-renowned combat surgeon Dr. Frank H. Lahey. It grew rapidly during its first three decades of operation, often outpacing its physical capacity in Boston's Kenmore Square. During this time, Lahey Clinic patients occupied the majority of beds at neighboring Boston hospitals including the New England Deaconess Hospital, and the New England Baptist Hospital. Lahey's Commonwealth Avenue facilities grew increasingly overcrowded. Faced with an expanding patient base, discussions for a new facility were drafted in partnership with New England Baptist Hospital, which long held close ties to Lahey Clinic. A partnership with New England Deaconess was also considered. However disagreement between administrators led Lahey officials to seek other options outside of downtown Boston. A transition to its current facility in Burlington, Massachusetts was completed in November 1980 under the leadership of then CEO, Dr. Robert E Wise. In 1994, Lahey opened an additional facility in Peabody, Massachusetts.
In January 2017, The Boston Globe reported of a letter of intent for a merger between Lahey and Beth Israel Deaconess with this partnership creating the largest hospital merger in Massachusetts in more than 20 years. The merger would include three additional hospitals: New England Baptist, Mount Auburn Hospital and Anna Jacques Hospital. The combined system would be counteraction to Partners HealthCare, Massachusetts largest network of hospitals and doctors with a market share of 22% in the eastern part of the state. In December 2017, a group called the Make Healthcare Affordable Coalition came out in opposition to the proposed merger of Lahey Health and Beth Israel Deaconess Medical Center citing the "mega merger" would lead to higher costs and the closing of health clinics serving minority communities. In March 2019, Beth Israel Lahey Health was formed by the merger of Lahey Health and Beth Israel Deaconess Medical Center. Beth Israel Lahey Health is composed of Addison Gilbert Hospital, Anna Jaques Hospital, Beth Israel Deaconess Medical Center, Beth Israel Deaconess Hospital—Milton, Beth Israel Deaconess Hospital—Needham, Beth Israel Deaconess Hospital—Plymouth, Beverly Hospital, Lahey Hospital & Medical Center, Lahey Medical Center-Peabody, Mount Auburn Hospital, New England Baptist Hospital, and Winchester Hospital.