Moose Lake Star Gazette - Serving Carlton and Pine Counties Since 1895

Mercy Hospital 

Mercy readies for major renovation, expansion project

$38 million in USDA loans secured


Mercy Hospital in Moose Lake has been selected to receive $38 million in loans from USDA Rural Development for a major building and renovation project. Mercy’s Board of Directors voted to accept the loan and proceed with the project at a meeting on October 4.

“This project is focused on meeting the health needs of our hospital district well 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.”

With the loan secured, the project will move into the final design phase. Construction is expected to start in May/June of 2013 and includes remodeling a portion of the existing hospital and building a new two-story addition. When the project is finished, the hospital district will have a hospital that is efficient in design and enables modern healthcare services to be delivered safely and effectively well into the future.

The new 116,400 square-foot facility will have 21 new private rooms and four labor and delivery rooms. Some departments will be relocated to improve the flow of services and better ensure patient and staff safety. The facility also will address the current and future healthcare needs of the region.

USDA funding comes in the form of a $30 million direct loan and an $8 million loan guarantee delivered through AgStar Rural Capital Network. Since 2009, USDA Rural Development has invested about $115 million to build or improve critical access hospitals in Minnesota.


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