New Building
Project Information
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Supports planning for a new hospital building to be completed in phases.
Borough Resolution 2021-04 donates land, supports phased construction and getting the project shovel ready.
Borough Resolution 2023-04 approves North Haugen site, start of rezone/replate, and the Dawson contract for pre-construction services.
Borough Motion making the project their #1 priority for federal funding.
Borough Ordinance #2023-11 rezones portions of the Airport Addition Subdivision and Thirteenth Street Relocation Subdivision to Public Use (PU).
Borough Motion making the project their #1 priority capital project. |
PMC's project prioritiesTo continue to provide patient centered care and enhance critical services that support our residents here at home.
To build a modern efficient healthcare building that will meet current regulations and best practices now and last into the future.
To enhance accessibility and privacy throughout.
To gain efficiencies in staffing and utilities and improve flexibility.
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Community Goals
key improvements planned
- Meeting the most current regulations and best practices for healthcare delivery
- Fully-accessible building and site, including parking, entrances, and covered dropoffs
- Enhanced privacy for treatment, ER, and registration
- Private rooms for Long Term Care and Acute Care
- Layout that maximizes staffing efficiency to maintain current staffing levels and provide opportunities for expanded services
- Energy-efficient design for long-term utility cost savings
- Welcoming and functional spaces for training, education, and community events–large meeting rooms, plus activity and dining spaces in Long Term Care
- Site connections to existing trails and nature
Next Steps
budget and funding
Land for the project is being provided at no cost by the Petersburg Borough. The WERC is primarily funded via a U.S. Department of the Treasury Coronavirus Capital Project grant. The main hospital building is partially funded via a grant from the Health Resources and Services Administration (through Senator Murkowski Congressionally Directed Spending). Petersburg Medical Center is requesting $37M in next year’s State of Alaska Capital Budget to construct the main building shell and core, leaving only about $30M of additional funding needed to complete the project. PMC will work with the congressional delegation, the Rasmuson Foundation, Denali Commission, USDA, and other potential funders—and conduct a capital campaign—to secure the final increment of funds.
SITE PLAN
Progress to Date
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November 2015
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Building condition assessment survey
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January 2020
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Master plan completed, including site options assigned by Borough
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May 2021
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Borough Resolution 2021-04 donates land, supports phased construction and getting the project shovel ready
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October 2021
May 2022
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Awarded $8M Senator Murkowski CCD/HRSA grant
North Haugen and Excel sites selected for further study
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September 2022
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Site due diligence studies; Bettisworth North selected as project architect
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January 2023
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Preliminary design completed
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February 2023
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Borough Motion making the project their #1 priority for federal funding
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April 2023
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Borough Resolution 2023-04 approves North Haugen site, start of rezone/replate, and the Dawson contract for pre-construction services; final geotechnical investigation
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May 2023
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404 permit application submitted to USACE; community open house
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July 2023
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Borough Assembly approves Ordinance #2023-11 to rezone portions of the Airport
Addition Subdivision and Thirteenth Street Relocation Subdivision to Public Use (PU). Borough Assembly, sitting as the Board of Adjustment, granted approval of PMC's Preliminary Plat and Vacation of certain Rights-of-Way. |
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August 2023
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USACE 404 permit issued
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September 2023
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Final Plat approved
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October 2023
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NEPA clearance
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December 2023
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Awarded $20M U.S. Dept. of Treasury CCP Grant for WERC Building
Groundbreaking ceremony |
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January 2024
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Borough unanimously approved the 2024 Capital Projects and Federal Priority Projects, making this their #1 priority capital project (second year in a row)
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TOP 10 Frequently Asked Questions (FAQs)
How will we pay for this project?
The total project cost exceeds the Borough’s ability to finance or bond for the total project cost, requiring the project to be completed in phases. The strategy is to obtain state and federal capital requests and other grants to fund the phases.
Land for the project is being provided at no cost by the Petersburg Borough. In FY 2022 Senator Murkowski obtained $8M for the project through direct appropriations (a Health Resources and Services Administration grant). The primary funding for the Wellness, Education & Resource Center (WERC) is a $20M grant from the U.S. Department of the Treasury that PMC received in late 2023. While the Treasury grant cannot be used for the main hospital building, securing that funding allowed us to move several functions out of the main hospital building thereby reducing the size and cost of the main hospital. The two buildings will be immediately adjacent to each other at the new site.
The Petersburg Borough ranked this project as the number one priority for capital projects and is requesting $37M in next year’s State of Alaska Capital Budget to construct the main building “shell and core,” leaving approximately $30M of additional funding needed to complete the project. The Petersburg Borough and PMC will work with the congressional delegation, the Rasmuson Foundation, Denali Commission, USDA, and other potential funders – as part of the capital campaign – to secure the final increment of funds.
In the event that any financing option, such as a loan or similar funding request, is considered for completion of the project, it would go through the Borough’s public process. This process would include a vote, as appropriate, to determine whether the financing option should be pursued.
Land for the project is being provided at no cost by the Petersburg Borough. In FY 2022 Senator Murkowski obtained $8M for the project through direct appropriations (a Health Resources and Services Administration grant). The primary funding for the Wellness, Education & Resource Center (WERC) is a $20M grant from the U.S. Department of the Treasury that PMC received in late 2023. While the Treasury grant cannot be used for the main hospital building, securing that funding allowed us to move several functions out of the main hospital building thereby reducing the size and cost of the main hospital. The two buildings will be immediately adjacent to each other at the new site.
The Petersburg Borough ranked this project as the number one priority for capital projects and is requesting $37M in next year’s State of Alaska Capital Budget to construct the main building “shell and core,” leaving approximately $30M of additional funding needed to complete the project. The Petersburg Borough and PMC will work with the congressional delegation, the Rasmuson Foundation, Denali Commission, USDA, and other potential funders – as part of the capital campaign – to secure the final increment of funds.
In the event that any financing option, such as a loan or similar funding request, is considered for completion of the project, it would go through the Borough’s public process. This process would include a vote, as appropriate, to determine whether the financing option should be pursued.
Why don’t we keep the same downtown location?
In response to the 2015 facility assessment, PMC developed a comprehensive Master Plan in 2020 that explored options for replacing the building at its current downtown site. The cost of this option was estimated at $110 million, making it the most expensive choice (2020 costs). Additionally, replacing the building at its current site would pose challenges in ensuring uninterrupted patient care throughout the construction phase, especially for those in long term care and acute care, thereby negatively impacting our services.
What will happen to the old hospital building once the new buildings are completed?
Any future decisions regarding the existing building will follow the Borough’s public process for such matters. PMC is pursuing $1.5M for demolition of the existing hospital building. This amount is based on an estimate prepared by Dawson Construction in August 2023.
What new services or benefits will the new buildings provide to patients and the community? What about birthing services?
The WERC will include an MRI suite, the State of Alaska Public Health, conference/training rooms, a public internet center, and several PMC departments including Community Wellness and public conference rooms. Both buildings at the new site will meet the most current regulations and best practices for accessibility and healthcare delivery that provide privacy for staff, patients, and families. The hospital building will have private rooms for both long-term care and acute care. The new site will create a medical campus environment due to its proximity to the senior and assisted living facilities and connection to trails and outdoor recreation for patients and families. Upgraded technological capabilities will allow PMC to better utilize specialists and provide pre-op and follow-up appointments with outside providers.
Birthing services were discontinued by the PMC medical staff and board in 2008 unrelated to a new facility infrastructure. This would be subject to the hospital board and medical staff governing bodies.
Birthing services were discontinued by the PMC medical staff and board in 2008 unrelated to a new facility infrastructure. This would be subject to the hospital board and medical staff governing bodies.
How will staffing be addressed to accommodate the larger facility, considering the current understaffing challenges?
We do not anticipate increased staffing requirements associated with a larger building size. The majority of the increased square footage in the new design is primarily to meet regulatory standards for fire and safety, accessibility, exam rooms, inpatient hospital rooms, and long-term care rooms. Throughout the design process, our emphasis is on preserving the existing staffing efficiencies and workflows that exist due to the close proximity of the emergency department, acute care, and long-term care units.
How will the PMC be able to afford the upkeep and maintenance of the new buildings?
PMC completed analysis related to fiscal responsibility, maintenance costs and staffing costs associated with a new building. Here are the findings from that analysis:
- Utility costs on a per square foot basis are expected to go down significantly because the new facilities will be much more energy efficient, both in terms of overall insulation and the use of state-of-the-art mechanical/electrical equipment, lighting, etc.
- Annual maintenance and improvement costs are projected to be less.
- Based on current operations and staffing levels, greater operational efficiencies are expected.
- Because Medicare/Medicaid Services (CMS) are a cost-based level of reimbursement, a new building allows for a new depreciation schedule that accounts for a greater financial return from CMS to fund maintenance and improvement costs.
Will the cost of healthcare increase if a new building is constructed?
We understand that healthcare costs are a significant concern for our community. The opening of our new facility is designed to enhance the quality and accessibility of care we provide. Healthcare costs are subject to many factors and will generally go up irrespective of a new facility. Our goal is to manage these costs effectively while continuing to offer high-quality care.
As a critical access hospital, we are committed to serving our community's needs, and part of this commitment is to ensure that our healthcare remains affordable. We receive facility reimbursement from Medicare and Medicaid, which helps to offset some of the costs associated with the expansion and operation of the new facility.
Moreover, our new facility is equipped with state-of-the-art technology that, while representing an upfront investment, is expected to lead to more efficient care, better patient outcomes, and reduced costs over time. We are proactively taking steps to manage and mitigate any potential cost impacts. This includes not increasing our staffing, following the state Certificate of Need process with the state’s office of rate review and working closely with insurance providers to ensure that our services are covered comprehensively.
We believe that the benefits of having advanced healthcare services readily available in our community are a valuable investment in the well-being of our residents. We will continue to work diligently to provide high-quality, accessible healthcare while being mindful of cost containment and transparency.
As a critical access hospital, we are committed to serving our community's needs, and part of this commitment is to ensure that our healthcare remains affordable. We receive facility reimbursement from Medicare and Medicaid, which helps to offset some of the costs associated with the expansion and operation of the new facility.
Moreover, our new facility is equipped with state-of-the-art technology that, while representing an upfront investment, is expected to lead to more efficient care, better patient outcomes, and reduced costs over time. We are proactively taking steps to manage and mitigate any potential cost impacts. This includes not increasing our staffing, following the state Certificate of Need process with the state’s office of rate review and working closely with insurance providers to ensure that our services are covered comprehensively.
We believe that the benefits of having advanced healthcare services readily available in our community are a valuable investment in the well-being of our residents. We will continue to work diligently to provide high-quality, accessible healthcare while being mindful of cost containment and transparency.
What measures will be taken to address potential traffic issues associated with the new hospital?
We do not anticipate traffic issues with the current site plan. The main access to the hospital will be off Haugen Drive with sufficient parking capacity. There will also be a secondary entrance to the site from Excel Street to the north. The new site is expected to result in less overall traffic and parking congestion compared to the existing downtown location.
What is the timeline for the project, and how will progress be communicated to the public?
With the approval of the Assembly and the PMC Board, we have developed a phased construction plan for the new facilities that includes the following projected milestones:
- November 2023: Start sitework
- Spring 2024: Start construction of the WERC building
- Summer 2024: Start construction of the main hospital and long term care building
- Summer 2025: Complete WERC building
- Fall 2027: Complete main hospital and long term care building
- ‘New Facility & Planning’ tab on the PMC website
- Monthly Borough Assembly meetings
- Monthly PMC Board meetings
- Future events like open houses and community forums
How will it affect the trails, ball fields and natural vegetation?
Existing trails, boardwalks and ballfields in the area will not be affected. We will work around the current vegetation as much as possible to keep the natural screen as a buffer between the hospital and the surrounding neighborhood and ballfields. The site plan includes easy access to these trails and access to outdoor spaces for the well-being of patients and their families.
Resources and news
- Petersburg receives funding for new hospital from FY2022 Consolidated Appropriations Act March 2022
- Building Condition Assessment (2015)
- PMC Community Needs Assessment (April 2022)
- Master Planning (2019)
- Long-term planning
- Potential Sites Utility Assessment (2019)
- State of Alaska CCPF Grant Performance Reports