Wilfrid Harbor Hospital officials outline facility replacement plan and $42 million bond ask

Sherry McDonald, a hospital representative working with Wilfrid Harbor Hospital, told the South Bend City Council on March 10 that the existing hospital buildings are approaching the end of their useful life and do not meet modern clinical, safety or accessibility standards. She said patient rooms are smaller than modern standards, parts of the campus lack negative-pressure rooms for infection control, plumbing failures mean some areas do not get hot water, and the facility has limited space for necessary technology and equipment.

McDonald described three options the hospital board evaluated: retrofitting the existing campus (estimated at $47–50 million, would require phased closures and risk service interruptions), replacing buildings on the current hilltop campus (an earlier estimate of about $191 million) and building a new facility on a different site. After geotechnical review and critical-access distance requirements, the board selected a Delaware Avenue parcel it closed on in March 2023 as the only site that met technical criteria and maintained access from Highway 101. The new-site option was estimated at about $96.4 million in current-year dollars, McDonald said.

The board and its technical advisory group sought to limit scope and costs: McDonald said a first design at $126 million was reduced (removing nuclear medicine capacity but retaining MRI capability) to roughly $92 million. After the initial bond proposal of $46 million failed at the ballot, the board reduced the local ask to $42 million. McDonald provided illustrative tax impacts in a handout, saying a property with an average value in North Pacific County (about $350,000) would pay roughly $455 per year, or about $38 per month, under the proposed bond scenario.

McDonald also outlined an active multi-source funding strategy. She said the hospital has submitted a USDA rural-hospital application, requested $5 million in the state capital facilities budget (still pending finalization at the end of April), is pursuing federal appropriations support (naming outreach to Senators Murray and Cantwell and congressional delegation members), submitted a $5 million FEMA request to improve redundant utilities and is pursuing philanthropic and foundation grants (a potential $300,000 Murdoch Charitable Trust step and an application to the Cheney Foundation). "We're more than open" to funding ideas, she said, and asked the community to contact legislators to underscore local support.

Why it matters: Hospital leadership argued replacing the facility would preserve critical-access designation and local health services for future generations while reducing operational risk during construction. The board emphasized maintaining revenues and services during any construction sequence to avoid financial collapse of the facility.

Councilors and residents asked clarifying questions about easements and access to the Delaware Avenue parcel, the timeline for purchases and road design, and how possible Medicaid or other reimbursement changes could affect the hospital's finances. McDonald said the property offers two points of access, easement negotiations are underway with one owner, and federal/state funding remains contingent on clear local commitment, including the bond. She also urged the council to review materials and consider a resolution of support.

The presentation included specific cost figures and prior ballot history, and McDonald distributed a handout with detailed tax-impact estimates for local property owners.