With funding now secured, construction is scheduled to begin by June of 2013 on a renovated and expanded critical access hospital in Moose Lake.

Mercy Hospital will receive $38 million in loans from USDA Rural Development and Agstar Rural Capital Network to build a 116,000 square‐foot hospital that will serve the 12,000 families and visitors of southern Carlton and northern Pine counties.

“USDA and Agstar have partnered to finance five healthcare‐related facilities in rural Minnesota since 2010,” Colleen Landkamer, USDA Rural Development state director said in a news release. “Moose Lake is the gateway to Minnesota’s Arrowhead region and this new facility will provide quality healthcare and jobs in the community well into the future.”

Proposed plans include building a two‐story addition to the current hospital, rearranging some department locations and creating a new floor plan that will improve the efficiency of services, patient safety and privacy and enhance patient care. There will be 21 new private inpatient rooms, four labor and delivery rooms and a new in‐house pharmacy area.

The current Mercy Hospital was built in 1963. The hospital will be contributing $9.7 million to the renovation and expansion project.

“This project is focused on meeting the health needs of our hospital district now and into the future,” said Michelle Frohrip, Mercy board chair. “We are excited to move forward with a building that will enhance patient care, safety and privacy while reflecting the personalized, high quality care already provided by our dedicated staff.”

“We appreciate the USDA’s recognition of the value of this project to the people served by our hospital,” added Jason Douglas, Mercy CEO. “This project is an investment into the health of this rural district and is based on a careful and thorough planning process.”

Through its community facilities program, USDA Rural Development finances essential buildings and equipment in rural communities of 20,000 or fewer in population. Funding for Mercy Hospital comes in the form of a $30 million direct loan from USDA and an $8 million loan delivered through Agstar Rural Capital Network and guaranteed by USDA.

“AgStar is proud to partner with USDA to fund the Mercy Hospital renovation and expansion project. The facility improvements allow staff to continue providing exceptional healthcare close to home, which is critical for rural communities,” said Bob Madsen, associate vice president at Agstar Financial Services. “In addition, the project offers expanded options and services in a state‐of‐the‐art facility, ensuring the long‐term vitality of the communities it serves. Alongside our partnership with USDA, it’s also important to AgStar that we work directly with other local financial situations and organizations in the community to fulfill our mission of enhancing life in agriculture and rural America. It’s our goal to offer support in rural areas so they continue to thrive.”

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