
McKenzie Health System is pleased to announce that, after almost two years of waiting, they have received a Letter of Conditions from the USDA’s Community Facilities Program for a direct loan to be used for the construction of their replacement hospital in Sandusky.
This milestone means McKenzie Health System will move forward with the next phases of development, including seeking approval from the Michigan Finance Authority for tax-exempt bonds. The new hospital project has been years in the making, involving significant planning, community engagement, and broad support from donors, staff, volunteers, and the wider community.
CEO Steve Barnett shared that the health system anticipates breaking ground for the project in the third quarter of 2025, with construction to be completed by the end of 2026. It had originally been hoped for construction to begin in spring of 2024.
The construction plan includes the new hospital, along with a wide entrance on M-46, a second entrance on Gates Road, and spacious parking. There is also additional acreage for expansion and new buildings that may be needed in the years ahead.
Additional information, including groundbreaking details and ways to support the project, will be shared in the coming months. To learn more about the new hospital project, visit www.McKenzieHealth.org/Build.