South Lyon Medical Center seeks $1.52M for boiler replacements to protect critical-access services

Representatives for South Lyon Medical Center brought a funding update to the board on July 2, saying the hospital has an intent-to-award notice from state rural-health transformation funding for a project to remove and replace two aging boilers.

The presentation noted the main boiler dates to 1953 and the backup to 1958; both units have exceeded their expected service life and face increasing maintenance difficulty. "Without a functioning boiler, we really don't have a functioning hospital," a hospital representative said, explaining that hot water, sterilization, laundry and infection-control capacity depend on reliable boilers.

The hospital is requesting $1,522,000 from the program's flex fund for critical-infrastructure needs and is in negotiation with state and federal partners. The presentation outlined a project timeline that includes engineering design and procurement in 2026 and installation after winter 2026'7; the earliest completion target cited was May 2027, conditioned on boiler lead times and federal CMS approval for the funding drawdown.

Commissioners asked about the estimated efficiency gains (a 15% conservative estimate), warranty status, and whether the project will fit the fund timeline; hospital staff said they are coordinating with federal partners and CMS to meet spending deadlines.

Next steps: County staff will monitor the CMS/state approval process and coordinate spending timelines to meet grant conditions. No board vote was required at the July 2 update.