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Petersburg Medical Center CEO outlines health-care funding opportunity and MRI timeline

October 16, 2025 | Petersburg Borough, Alaska


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Petersburg Medical Center CEO outlines health-care funding opportunity and MRI timeline
Phil Hofstetter, CEO of Petersburg Medical Center, updated the Petersburg Borough Assembly Oct. 6 on state-level health care transformation planning and the medical center’s efforts to bring an MRI online.

Hofstetter told the assembly that the state’s health care transformation plan must be submitted for federal review in November and that hospitals statewide are coordinating to shape how potential funding will be allocated. "Depending on how the funding gets allocated, it could be upwards of a 100,000,000, potentially more per year," he said, adding that allocations and spending rules will determine what infrastructure and program areas qualify.

Hofstetter said the federal and state process is complex and will require partnership with the Centers for Medicare & Medicaid Services (CMS) and state agencies. He said the transformation opportunity is a five-year funding window and that some federal restrictions could limit infrastructure spending on the federal side, with other funds available through state-level block grants.

On the MRI, Hofstetter said the center’s certificate-of-need remains pending at the state and that mechanical, power and software issues have been worked through. "I would say safely in December, January is when we would start seeing, you know, optimistically, November, cautiously, probably January, December," Hofstetter said when asked about a target timeframe.

Assembly members asked follow-up questions about potential dollar amounts and the MRI timeline. Hofstetter said he would advocate for infrastructure funding and that the center is moving toward bringing the MRI online as staff complete safety and operational checks.

No formal action was taken on the presentations; the briefing was informational.

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Scribe from Workplace AI
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