The U.S. Department of Agriculture has just greenlit a $74 million loan for a brand-new replacement hospital for McKenzie Health System in Sandusky, Michigan. This major milestone was announced on August 25 by USDA Secretary Brooke L. Rollins, and it marks a big step forward for healthcare in Michigan’s Thumb.
“This represents a long-term investment in Michigan’s Thumb, which is a crucial part of the state’s agricultural economy,” said Rollins. “Providing quality, local health care is one of the cornerstones of restoring rural prosperity.”
The loan comes through the USDA’s Rural Community Facilities Direct Loan and Grant Program and will fund the complete replacement of the aging McKenzie Health System Hospital, originally built in 1967. The new hospital will increase space from 48,000 to 68,000 square feet and consolidate services currently spread across multiple buildings.
But this project is about more than square footage.
Known as “The Chrysalis Project,” the new facility has been carefully designed to support a transformation in how McKenzie Health delivers care. The hospital is a critical access provider, and the new building will provide 18 patient beds, including two acuity-adaptable rooms. There’s also room to grow, with flexible space planned for future expansions as the community’s needs evolve.
Located just a mile from the current campus, the new one-story hospital will bring together emergency care, imaging, surgery, inpatient rooms, a lab, pharmacy, kitchen and dining, an education center, and even a gift shop, and all under one roof. Simple circulation paths, smart security design, and room for future outpatient clinic consolidation are part of the plan.
With groundbreaking scheduled for October 1, 2025, this investment is set to shape the future of healthcare in Sandusky for generations to come.
For an informative at-a-glance project overview, click here.
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