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Nearly $90 Million in USDA Rural Development Funding Assisting With Expansion and Renovation Plans at Four Rural Iowa Hospitals

Name
Darin Leach
City
Des Moines
Release Date

USDA Rural Development has made a nearly $90 million investment in recent months to help improve rural healthcare opportunities in rural Iowa, impacting thousands of rural residents from Shenandoah to Independence.

“As Iowa’s population continues to age the need for improved healthcare services aimed at older Iowans is rising, especially in rural areas of the state,” said Bill Menner, USDA Rural Development State Director in Iowa. “It is very important that leaders in rural communities continually look for ways to improve the healthcare services that are offered in their community.”

Hospital expansion and renovations projects serving rural residents in and around Nevada, Independence, Shenandoah and Marengo are receiving a total of $88.2 million in direct loans from USDA Rural Development’s community facilities direct loan program this year.

Shenandoah Medical Center is being renovated and a two-story addition is being constructed for a new medical clinic. The existing clinic space will be modernized into a new surgical area. Other improvements will include a single entry point and registration/waiting area, an expanded emergency department, as well as the relocation of the respiratory therapy area and lab improvements.        

The total cost for the project is expected to be around $27 million and should be completed in 2017. The project is receiving $25.3 million in USDA Rural Development loan funding.

A new medical clinic is being constructed at the Story County Medical Center (Nevada, Iowa) to help consolidate services to its main campus. The new construction will include a primary care clinic, physical therapy, cardiac rehabilitation/wellness, as well as education and business offices. The total cost for the project is expected to be around $24 million and should be completed in 2017. The project is receiving $22.3 million in USDA Rural Development loan funding.

New primary and specialty clinics, as well as new surgical procedure rooms will be completed as part of an extensive expansion and renovation to the Buchanan County Health Center (Independence, Iowa). The total cost for the project is expected to be around $26 million and should be completed in 2017. The project is receiving $18 million in USDA Rural Development loan funding.

A 20,000 square-foot addition and complete renovation is being planned for Marengo Memorial Hospital. The hospital improvements will provide patients with better access to specialized care and out-patient services, as well as access to state-of-the-art medical equipment. The total cost for the project is expected to be around $28 million and should be completed in 2017. The project is receiving $22.6 million in USDA Rural Development loan funding.

During the last six years, USDA Rural Development has supported more than 50 rural hospitals, medical clinics, nursing homes and/or assisting living facilities with more than $370 million in direct loans, guaranteed loans and grants to make needed facility and equipment improvements.

“Along with providing important services to rural Iowans, rural hospitals can be an extremely vital part of the local economic engine,” Menner said.  “Many times these important healthcare facilities are that community's largest employer. The economic impact hospitals have on our rural communities and their surrounding areas is very significant.”

USDA Rural Development’s funding continues to have a dramatic impact on rural communities across Iowa.  Since 2009, USDA Rural Development has invested more than $3 billion on essential public facilities, small and emerging businesses, water and sewer systems, and housing opportunities for Iowa families.

This past year USDA Rural Development’s investment in Iowa helped create or retain more than 1,000 jobs, aided 2,400 families in buying their own homes and assisted more than 50 communities as they made improvements to their facilities, services and infrastructure.

Contact USDA Rural Development
For more information about finance programs available through USDA Rural Development, please call (515) 284-4663 or visit the agency’s web site at www.rd.usda.gov/ia.

USDA Rural Development has 11 offices across the state to serve the 1.7 million Iowans living in rural communities and areas.  Office locations include a State Office in Des Moines, along with Area Offices in Albia, Atlantic, Humboldt, Indianola, Iowa Falls, Le Mars, Mount Pleasant, Storm Lake, Tipton and Waverly.

USDA Rural Development is working with rural communities to create jobs, expand opportunity, encourage innovation and build a strong foundation for the future. The agency currently administers and manages more than 40 housing, business and community infrastructure and facility loan and grant programs designed to improve the economic stability of rural communities, businesses, residents and farmers and improve the quality of life in rural America.

President Obama’s plan for rural America has brought about historic investment and resulted in stronger rural communities. Under the President’s leadership, these investments in housing, community facilities, businesses and infrastructure have empowered rural America to continue leading the way – strengthening America’s economy, small towns and rural communities. USDA’s investments in rural communities support the rural way of life that stands as the backbone of our American values.