University of Maryland Shore Regional Health leadership updated the Talbot County Council on construction and operational plans for a new Regional Medical Center and on state and federal programs intended to support rural hospitals.

Ken Kozell, identified in the record as president of University of Maryland Shore Regional Health, told the council the state has signed a 10‑year agreement with the federal government to operate under the AHEAD model beginning Jan. 1, 2026, aimed at curbing cost growth and increasing investment in primary care. Kozell said federal funding streams include a $50 billion allocation for rural health, with $25 billion to be distributed by states and $25 billion controlled directly by the federal government.

Kozell described the Regional Medical Center site near Route 50 and the community center as under active construction: the second floor structure is visible, site prep is advanced, and crews are drilling geothermal wells. "We’re gonna have about 1,728 wells on that site," he said, each at about 400 feet, which he said will supply heating and cooling for the facility. He said the hospital’s target for first patient intake is mid‑2028.

Kozell said the hospital pursued and obtained permission under Maryland’s certificate‑of‑need process to add 29 licensed beds above typical formulas for a rural facility, which he said yields a planned total of 147 beds when fully built. He described the additional capacity as flexibility to move patients from the emergency department into private med‑surge and observation beds.

Laura Wilson, director of external affairs and community liaison for Shore Regional Health, reviewed local utilization and community programs. She said that across Shore’s five‑county Midshore service area last fiscal year Shore recorded about 7,500 admissions, 71,000 emergency‑department visits and 118,553 primary‑care visits; she said the Easton urgent‑care center saw 13,727 visits. Wilson described partnerships on behavioral‑health crisis response, a transitions pharmacist for home assessments (Melanie Chapel), and recruitment efforts with Chesapeake College to build a local workforce pipeline.

Council members asked whether emergency‑department crowding has improved. Kozell said two operational steps are already helping: a newly established rapid assessment zone that triages and treats many ED patients with quicker discharges ("most within 2 hours," he said) and the hospital’s hiring of a single hospitalist group, effective Oct. 7, that covers both ED and inpatient services to improve coordination. He said the rapid assessment zone handles about 40% of ED patients and that early indicators show improved throughput, but staff will continue to monitor performance.

Kozell framed the hospital project as part of a broader state and federal push to sustain rural health services and said state and federal funding opportunities make investments more feasible. The council’s discussion focused on construction progress, planned capacity, and steps taken to reduce ER bottlenecks.

The presentation and Q&A took place during the council’s regular meeting; project planning and funding details will return to council files as the construction and regulatory approvals proceed.