ONTARIO, Ohio – The next phase of Avita Health System’s Ontario hospital was officially announced Tuesday, propelled by a historic $91.4 million loan from the U.S. Department of Agriculture.
The second phase of expansion at Avita Ontario will increase patient care with a 22-bed emergency department, a seven-bed intensive care unit, a 19-bed inpatient wing and a 16-bed, pre- and post-operation area. The expansion will also enhance physician capabilities with four surgical suites, expanded laboratory and radiology, cardiology and cardiac rehab, and a pulmonary department.
Once completed, the 185,500 square-foot facility will create more than 350 new jobs and provide health care to nearly 125,000 residents in portions of three counties in north central Ohio.
“We believe we need to be our best for the communities we serve, and today is a fine example of that,” said Kelby King, Avita’s director of marketing and community relations. “Who would have imagined that five years ago a retail store would become a full-service health system?”
USDA Rural Development Deputy Under Secretary Vernita Dore said the $91.4 million loan was the largest-ever community facilities loan in the history of Ohio rural development. She stated it is designed to help Avita continue its “phoenix-from-the-ashes” story in the former Lazarus building at Richland Mall.
“You’ve brought meaningful employment to an area sandwiched right smack in-between the farm belt and the rust belt, employing close to 1,000 Ohioans and more than 50 doctors, and we know that number will increase as we move forward, Dore said.
“We are so pleased to partner with you on the last mile of this grand picture and look forward to watching the positive ripple effects that undoubtedly will follow on the heels of this announcement today.”
According to Jerry Morasko, president and CEO of Avita Health System, a significant chunk of the loan will go towards refinancing previous debt, with about $60 million earmarked toward constructing new facilities. Construction is expected to begin next month, with an aggressive timeline aimed towards completion in early 2017.
“We have a quick timeline at Avita, we don’t like to sit around so we keep pressure on everyone to keep things rolling,” said Morasko. “We weren’t your typical small-health system that just bunkered down and didn’t survive, we decided our best chance would be to develop Avita and make it a bigger system so we’ll always be able to compete long term with anybody.”
Construction will take place on all three floors at Avita Ontario during the second phase of the expansion. The majority of construction will take place on the third floor, where new inpatient and surgical areas will be located. First floor renovations will include a 24-hour emergency department and expanded lab and radiology. External renovations will include a helipad and a new parking lot.
Tony Logan, USDA Ohio’s rural development state director, said the Ontario and Richland County community could not be more deserving of such news.
“We’re all about helping build and maintain sustainable communities throughout rural America and now in small town Ohio as well,” said Logan. “We do this by working with local government and business leaders using our suite of financial tools to help build the modern infrastructure that a town needs to maintain a strong quality of life for its residents, to encourage local business to grow and develop, and to inspire future generations to stay in town, raise their families and contribute to the future economy of the region.”
Senator Sherrod Brown also commented via a letter on the importance of making meaningful investments in smaller and rural communities. Since the opening of Avita Ontario, Richland Mall has seen an 8- to 10-percent increase in mall traffic.
“The partnership between USDA and Avita Health System will ensure more Ohioans in Richland County and the surrounding area have access to the healthcare they need,” said Brown in the letter. “As a proud Mansfield native, I’m eager to see new investments in business in Richland County. This historic award is a major boost for Ontario and our state.”
Avita Health System purchased the former Lazarus retail store in October 2013, and the groundwork for the second phase of development at Avita Ontario was already laid at the December 2014 opening of the new medical complex. Charles Walker, past board chairman for Avita Health System, said since then the hospital’s utilization by local residents has exceeded expectations.
“We had developed three phases to handle the development of this hospital, each subsequent phase depending on the success of the first one,” said Walker. “Its reception has been beyond our dreams.”
“It’s hard to believe a little more than two years ago we were standing here talking about this starting,” said Ontario Mayor Randy Hutchinson. “It was a vision, and now it’s a reality.”
