VALPARAISO | After failing earlier this year to buy Porter hospital, Memorial Hospital & Health System of South Bend announced plans Tuesday to build a 100-bed hospital and medical complex in the city along Ind. 49.
Memorial CEO and President Phil Newbold said ground will be broken next year for the $100 million hospital and a 100,00-square-foot medical office building on 53 acres along the east side of Ind. 49 between county roads 500 North and 400 North.
The new 225,000-square-foot hospital should be in operation in 2010 and will include an emergency room, surgical services, obstetrics and critical care, he said. He was unsure about pediatric care.
There will be room to expand the hospital to 250 beds, as well as room for other health-related facilities on the site.
"We think this is a dynamic, growing market," Newbold said.
The announcement comes just two months after the sale of the county-owned Porter hospital to Community Health Systems of Tennessee in a deal that calls for the new owners to replace the 68-year-old facility within four years.
"More than one hospital is very good for this community," Newbold said.
Valparaiso Mayor Jon Costas said two local hospitals will result in quality health care, good jobs and an influx of revenue as the county becomes a destination for patients.
One third of all patients in need of speciality care are now leaving Porter County, primarily bound for health care providers in Chicago, said Memorial Senior Vice President Theodore Foti.
The new medical campus will attract specialist to stem this flow, he said.
Porter spokeswoman Robin Carlascio said Tuesday the hospital was just made aware of the details of Memorial's plans and will have no comment on the project until next week.
Newbold said he plans to continue meeting with physicians and is offering them the opportunity to invest in the new hospital, which is also being offered as part of Community's project. Memorial's hospital will be for-profit if physicians participate and not-for-profit if Memorial pursues the project alone.
Memorial, which currently operates a 400-bed hospital in South Bend, will also continue its tradition of setting aside 10 percent of its bottom line each year to help support community groups providing health-related services.
Costas said the city is expediting the approval process and will be extending utilities to the site in question, which was annexed by the city last year.
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