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The collaboration includes a new Disney play space, a mobile movie theatre, 42 murals and three magic windows.
Mickey Mouse made a special appearance on Tuesday, giving children and their families a chance for hugs.
"It melts my heart so much and it makes me want to tear up," said Fantasy Dunlap, mother of 5-year-old patient Kensy. "She always wanted to go to Disney World."
Kensy has been getting treatment for a speech delay at La Rabida for three years. Fantasy Dunlap said the new Disney play space and mobile movie theater improve their experience.
"We're here to celebrate the kids and this hospital and the service they give to Chicago and Disney's part of that celebration." ABC7 President and General Manager John Idler said. "Through [Disney's] global initiative, they've got $100 million commitment to children hospitals around the country."
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La Rabida is among select hospitals across the country where Disney's is offering interactive installations to put smiles on patients' faces.
"I think for a child to be able to have this beautiful space, to have things to interact with, to grow, develop, feel safe, be a child it only can foster growth development and healing," said Kelli Guglielmi, interim CEO of La Rabida Hospital.
The Walt Disney Company is the parent company of this station.