The Commonwealth Fund established the Division of Health Studies as a separate division on April 1, 1931. The purposes of the organization were 1) to make periodic studies of the health conditions in the various communities in which the Commonwealth Fund worked, 2) assist in the development of division programs through the planning of administrative records and the appraisal of results, 3) conduct special studies in the field of health as from time to time seemed important in the development of the work of the Fund or would be of broad application.

The initial concerns of the Division were to establish the service functions of the Public Health and Rural Hospital Divisions and to aid the Mental Hygiene and Child Guidance Programs in their regular activities. The annual reports of the Division closely reflect the concurrent programs of the Commonwealth Fund. The Division's years always ended on November 1.

Dr. W. F. Walker was the first director of the Division. After Walker's death in September 1941, Dr. F. L. Moore became the new director in July 1942. Moore resigned his post on April 1, 1944. The Division of Health Studies was absorbed by the Division of Public Health on January 1, 1945.