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USDA RD Announces Over $56 Million to Construct New Health Care Facility in Rugby

Chris Freeman
Release Date

BISMARCK, N.D., Oct. 25, 2022 – U.S. Department of Agriculture (USDA) Rural Development State Director Erin Oban today announced that USDA is awarding over $56 million to build new health care infrastructure for the Good Samaritan Hospital Association in Rugby, North Dakota.

“North Dakotans deserve high-quality health care in high-quality facilities, and the dedicated health care professionals who provide this care deserve to work in safe, modern, patient-centered sites with the space and equipment they need,” said Oban. “Eliminating transportation barriers and reducing drive times to see a doctor quite literally saves lives. USDA Rural Development is committed to ensuring that health care can continue to be accessed and delivered directly in and nearest to the communities in which people live. We celebrate this crucial investment in the workforce, the community, and the nearly 13,000 North Dakotans who receive care and are served by the Heart of America Medical Center.”

The Good Samaritan Hospital Association will use $56,243,000 from USDA Rural Development through the Community Facilities Direct Loans and Guaranteed Loans Program and the Emergency Rural Health Care Grant Program. Funding amounts include: $50,243,000 in a Community Facilities Loan, $5,000,000 in a Community Facilities Guaranteed Loan, and $1,000,000 in an Emergency Rural Health Care Grant.

The funding will be used to replace the current Critical Access Hospital and Medical Facility for the Good Samaritan Hospital Association, which provides care and services as the Heart of America Medical Center in Rugby, North Dakota. The new facility will include a critical access hospital, emergency room, procedure suite, imaging, lab, pharmacy, and business office. The hospital will provide for 25 beds, of which six will be acute care beds, one observation bed, and 18 swing beds to provide senior living space. The facility will include a clinic area and allow for the continuation of much needed medical services to Rugby and the surrounding communities. This project is estimated to benefit 12,758 rural residents living in Pierce, Benson, McHenry and Rolette counties.

Background: Emergency Rural Health Care Grants

Congress passed the American Rescue Plan Act in March 2021 to deliver immediate economic relief to people impacted by the pandemic. Within months after the Act’s passage, USDA responded quickly by making this funding available to ensure the long-term availability of rural health care services.

In August 2021, USDA made the Emergency Rural Health Care Grants available through the American Rescue Plan Act to help rural health care facilities, tribes and communities expand access to health care services and nutrition assistance.

The assistance is helping provide immediate relief to support rural hospitals, health care clinics and local communities. USDA is administering the funds through Rural Development’s Community Facilities Program

About USDA Rural Development

Under the Biden-Harris Administration, Rural Development provides loans and grants to help expand economic opportunities, create jobs and improve the quality of life for millions of Americans in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural, tribal and high-poverty areas. For more information, visit www.rd.usda.gov.

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate-smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov.

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