Growing to Meet Tomorrow’s Healthcare Needs

Fifteen years ago, Perham Health opened its current hospital with room to grow. Few could have predicted just how quickly that growth would come. Today, after years of adding services, technology, and patients, the organization is preparing for its next chapter with a major expansion project designed to meet the healthcare needs of a growing region.

Now, Perham Health is taking the next step with a major expansion project designed to support the future of healthcare in the region. The project will add approximately 44,000 square feet to the hospital, remodel existing space, and create room for continued growth in critical services.

"The top three reasons for this project are growth, growth, and growth," said Chuck Hofius, CEO of Perham Health. "We have exceeded our projections in nearly every department and simply don't have any more space to grow within the building we have today."

Growth Beyond Expectations

When the hospital was designed, planners anticipated strong growth. In fact, most departments were built with enough room to handle increases of 50% to 125%.

What happened exceeded even those expectations.

Since moving into the current facility, births have more than tripled. Lab testing has tripled. Imaging procedures have nearly tripled. Infusion therapy has grown by 355% since becoming a dedicated service in 2015. Hospital pharmacy activity has increased from roughly 330,000 medication doses per year to nearly 3 million.

At the same time, healthcare itself has changed dramatically.

Services such as pain management, robotic-assisted surgery, expanded orthopedic procedures, and infusion therapy either did not exist or were much smaller when the building was planned.

"We've added services and technology that weren't even on the radar when we designed this hospital," Hofius said. "We've found ways to make it work, but we've reached the point where we need more space to continue providing the care our communities deserve."

Making Every Inch Count

Before deciding to expand, Perham Health spent years finding creative ways to make better use of its existing space.

Offices were relocated. Work areas were reconfigured. Storage rooms, meeting rooms, and other spaces were repurposed for patient care. In total, the organization has converted 153 spaces within the facility to accommodate growth.

"We've been able to adapt and stretch the building far beyond what was originally planned," Hofius said. "But we've run out of options. We don't have more offices to convert, more storage rooms to give up, or more space to reconfigure."

Expanding Key Services

The project focuses on some of the hospital's busiest and fastest-growing departments.

Major improvements are planned for:

• Surgery
• Emergency Department
• Imaging
• Birth Center
• Infusion Therapy
• Pain Management
• Hospital Pharmacy
• Retail Pharmacy
• Therapy Center
• Cardiac Rehabilitation

Among the most significant changes will be a new emergency department and expanded surgical services.

Surgery will grow from two operating rooms to four, providing capacity for future growth and new specialty services. The department will also increase from eight pre- and post-operative patient rooms to 21.

The Birth Center will expand from four labor, delivery, recovery, and postpartum rooms to six.

The Emergency Department will grow from its original eight treatment rooms to 13, creating additional capacity to meet the growing needs of patients across the region.

Investing in the Future

Construction costs are estimated at $55 million. When medical equipment, furnishings, technology, and financing costs are included, the total project investment is estimated at $71 million.

Thanks to years of careful financial stewardship, the organization does not plan to launch a capital campaign or raise taxes to fund the expansion. Perham Health has saved $20 million toward the project and plans to finance the remaining $51 million, allowing the organization to invest in expanded healthcare services while remaining financially strong for the future.

"I feel we've been good stewards of our resources," Hofius said. "We've saved for projects like this so that when the time comes, we'd be ready to invest in the future of healthcare for our communities."

Building for the Next Generation

Construction is expected to begin in spring 2027 following the bidding process. Because work must take place while the hospital remains fully operational, the project is expected to take nearly three years to complete.

For Hofius, the project is more than adding square footage. It is about ensuring that residents continue to have access to high-quality care close to home.

"Across rural healthcare, many organizations are facing significant challenges," Hofius said. "We're fortunate to have an outstanding team and strong community support. This expansion ensures we can continue building on that strength and providing exceptional care close to home."

The expansion represents a significant investment in the future of Perham Health, ensuring the organization can continue providing exceptional care while remaining strong, patient and family-centered, and focused on serving the communities that rely on it every day.