GCMH expansion gets USDA financial backing

GRUNDY CENTER – Grundy County Memorial Hospital announced that it has received financial approval from the USDA for the planned expansion project to the facility, including new surgery and imaging departments.

GCMH also plans an expansion of the hospital lab. The project will be advertised for bids this spring and groundbreaking is expected in June.

The hospital is marking 70 years of operation in 2022 and this will be its fourth capital improvement project of the past 20 years.

Adam Scherling, GCMH Administrator, is excited for the imminent construction.

“...The Surgery, Imaging and Lab departments all operate in areas that were constructed decades ago, and although they’ve undergone remodeling, they simply do not meet our organizational needs today or in the future,” Scherling added.

The new construction will add to the hospital’s northeast side, including a new entrance and parking area for surgery patients accessible from East 1st Street.

The $29.3 million project will be financed with a long-term loan from USDA Rural Development. The package includes $10.5 million in cash reserves to pay off general obligation (GO) bonds issued by Grundy County with $8 million worth of hospital capital; approximately $2.2 million worth of prior debt will be refinanced as well.

USDA’s loan process also includes participation from local lenders, with a group of seven local banks joining together to assist in financing construction for the project, including GNB Bank in Grundy Center.

“The hospital is a vital asset to the entire region,” said GNB CEO Bob Johanns, “and we look forward to partnering with them. This project will further solidify the availability of high-quality medical services to our rural communities.”

Highlights of the project include:

- an additional operating room in the Surgery department, enlarged space for sterile processing and increased privacy for pre- and post-operative care;

- a new Imaging department space that allows for the MRI unit to be inside instead of in a trailer outside the hospital;

- Lab expansion for more space to accomplish fast turnaround of tests and increased privacy with separate “draw rooms” for patients.

GCMH does not levy taxes to support its operation - the hospital requests an annual subsidy from the county to support capital and operational needs.