The former oratory, located on Via Consolare, was the site of a hospital in the commune of Spello and starting in the 15th century it hosted the Confraternita del Buon Gesù, which managed the institution. According to the Chronicles of the Olorini, the congregation was founded in 1444 by San Bernardino da Siena during a sermon in San Lorenzo. The institution was suppressed in 1571, at the behest of the apostolic visitor, due to the squandering of commodities and money. Today the building is privately owned and is used for secular purposes.
The building was badly affected by a terrible earthquake that struck in 1882 and, due to the damage, the facade was set back: this has a pointed portal surmounted by a single-lancet window. The original doors of the ancient portal, which dates back to the 15th century, are kept in the atrium of the church of Santa Maria Maggiore. On the tympanum there is a fresco depicting San Bernardino which was detached from the original facade and painted over the older fresco in 1942 by Benito Balducci.
Inside the former oratory there are frescoes from the Umbrian school of the 16th century: one of these, depicting a Madonna with Child between Saints Girolamo and Bernardino, has been tentatively attributed to Andrea d’Assisi. This fresco, together with the fake pilaster of the frame around it, were removed after 1903 by the art restorer Giuseppe Colarieti Tosti and transferred first to the Cappella del Crocifisso in Santa Maria Maggiore, and subsequently, to the town’s art gallery (Pinacoteca Civica), where they are currently located.