The damage was discovered by a passer-by who informed local historian, Alan Dennis.
Mr Dennis had spearheaded the work to create the memorial which sits on the edge of the development now occupying the site of the former workhouse-turned-hospital.
Mr Dennis was, understandably, upset when he heard the news.
He said: “Sadly, this looks like an act of vandalism.
“The cross had stood on the chapel for 200 years and had been carefully cared for since it was removed – now it is in pieces.
“It is very disappointing to see this happen to something that means a lot to so many people and pays tribute to all those involved with the hospital over time.”orial to Caistor hospital was dedicated, the main cross lies in ruins.
The cross was rescued from the original workhouse chapel, which was the last building to be demolished when the site in the town's North Kelsey Road was developed.
The foundation stone from the original House of Instruction, which predates the site’s use as a hospital, was also saved and now forms part of the memorial.
Caistor mayor Jon Wright was at the dedication service back in November and was equally upset when he heard of the damage.
He said: “After all the hard work and effort that went into the Caistor Hospital Memorial to see such vandalism and desecration is truly sickening.
“The mindless disrespect by the culprits for the families and workers of the hospital is one of many incidents in the town of late.
“If anyone has any information please contact us [the town council] or the police.”
Mr Dennis posted the news of the damage to the cross on the Caistor Memories Facebook page run by Caistor Local History Society, which attracted a range of comments showing the depth of feeling over the actions.
One comment, representative of many, read: “That’s something very sacred to the former workhouse and later, the hospital.
“To some people the cross would mean nothing, but to others it meant everything and you [Mr Dennis] have made sure it was put back in its rightful place.
“I hope it is repairable and someone feels able to come forward if it was accidentally damaged.”
However, one commentator questioned whether the damage was vandalism or was the cross damaged by frost due to the changes in the weather – “sudden lurches from very cold and dry to mild and wet and back again”.
Mr Dennis said: “I am keeping an open mind on exactly how the damage was caused, as, despite asking around, nobody saw what happened.
“However, what I would say is that I have consulted with someone who specialises in damage to buildings and stone work and their feeling is the breaks look deliberate rather than being caused by natural forces.”
The cross has now been removed from the site and is being looked at by a stonemason to see if, and how, it can be repaired.