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The "Hospital in the Vicinity of Baltimore" or, as it was also known at the time, the "City Hospital," was located in "Hospital Square" at the northeast corner of Market (later Broadway) and Jefferson Streets.
(See highlighted area to the right of the word "Baltimore." Highlight added.)
At least one document from this period refers to the Hospital as having been located on Jefferson Street, although earlier documents refer to its presence on the (old) Joppa Road, and later the Hospital was described as having been oriented towards Monument St. The Hospital building, itself, was actually nearly equidistant between Jefferson and Monument Streets, and much of the land surrounding the building was tilled. The large, open space to the west of Market Street (left of Market in the above map) and the hospital was owned by James Stirling, a native of Stirling, Scotland. This parcel of land was developed a few years after this map was drawn, and nearby Stirling Street (of "dollar house" fame) was named after the estate's owner. Note that in 1819 the Baltimore city limits ran right next to the Hospital. Earlier maps indicate that the hospital was originally located outside the City -- although, as the City expanded, it eventually became part of Baltimore.