A group tasked with taking care of Allen County’s hospital facilities approved two major remodel projects, even though the $1.6 million total cost was about 50% more than expected.
One project will convert the former labor and delivery department at Allen County Regional Hospital into a specialty clinic for outpatient services.
The other will remodel the Medical Arts Building at 825 E. Madison, in order to move an existing health clinic at 401 S. Washington. A lease on the Washington Street clinic ends this summer; the county owns the Madison Street location, so it made more sense to renovate and move the clinic there.
Costs — particularly the Medical Arts Building remodel — came in higher than expected when the projects were first proposed in June 2021. That’s partly attributed to an increase in labor and supplies, as inflation and costs have gone up significantly since then.
The cost for the specialty clinic came in at $1.1 million; initial estimates were around $838,000.
Work at the Medical Arts Building will cost $538,442. Last June, costs were unknown, but the facilities board thought it might cost $150,000.
The scope of the project at the Medical Arts Building, though, turned out to be more than anticipated. The facility was built in the 1970s and hasn’t had a lot of updates since then. The costs were also higher than expected because the building must meet stringent specifications as a rural health clinic.
“This one took on a whole life of its own,” Terry Sparks, chairman of the hospital facilities board, said at a meeting Thursday when the projects were approved.
“This one was really hard to bid.”
The board attempted to find local contractors who could handle the project, but none were able to tackle it within nine months or a year. The board needs the project to be completed this summer, because the lease ends June 30.
The same company, Ross Construction, of Kansas City, Mo., will oversee both projects with a projected completion in 120 days for both. The company has previously done work for the Saint Luke’s Health System, which leases ACRH.
Services at both the hospital and the Medical Arts Building should not be interrupted. The hospital construction will take place in areas not heavily utilized.
Construction at the Medical Arts Building will be done in two phases. First, crews will update the south half of the building. Specialty clinics currently use the north half, and they will permanently move into the south half once that phase is completed.
Then, crews will remodel the north half to create the new health clinic space. The Washington Street clinic will move there after that.
The new health clinic includes eight clinic rooms, two procedure rooms, office space for two physicians, a lab area, a reception and waiting room, and general office and meeting rooms.
Some work will also be done to the outside of the building.
The facilities board wants to discuss financing options for the project with county commissioners.
