McKenzie Health System Receives USDA Letter of Conditions for New Hospital Project

McKenzie Health System is pleased to announce that we have received a Letter of Conditions from the USDA’s Community Facilities Program for a direct loan to be used for the construction of our replacement hospital in Sandusky. We anticipate breaking ground in the third quarter of 2025, with construction to be completed by the end of 2026.

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.

“This isn’t just about bricks and mortar,” said Steve Barnett, President and CEO of McKenzie Health System. “This is about people. It’s about creating a stronger future for our rural community, expanding access to lifesaving care, strengthening the overall health of our friends and neighbors, and investing in our local economy for decades. We are honored and excited to reach this point in the process.”

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. This project reflects McKenzie Health System’s unwavering commitment to providing exceptional healthcare and building a stronger, healthier future for our community.

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.