McKenzie Breaks Ground: A New Era Begins in Sandusky

October 1 was more than just a date on the calendar. It marked the moment McKenzie Health System turned plans into action and broke ground on a brand-new hospital campus for Sandusky, Michigan.

Under sunny skies (and plenty of smiling faces), the ceremony drew a crowd of hospital leaders, longtime staff, community volunteers, city officials, and partners from InnoVative Capital, Christman Construction, and DEJA. The mood? Energized and proud. This wasn’t just a celebration of a new building. It was a celebration of the future of care in Michigan’s Thumb.

The new hospital will rise on a 22-acre greenfield site just a mile from the existing facility. As one of the rare replacement hospitals in a rural setting, the project gives McKenzie the chance to completely reimagine how care is delivered. It creates space for growth, future outpatient clinic consolidation, and more integrated services, all designed around the needs of real people.

That means fewer trips across town. Less confusion. Shorter waits. Easier access to care that’s close to home.

It also means new job opportunities, stronger recruitment tools for doctors and nurses, and a long-term investment in the community’s health and economic resilience.

DEJA began working with McKenzie in 2020, starting with a master plan and a rigorous journey through USDA funding approvals. Now, with a $74 million investment from the USDA’s Rural Community Facilities Program, The Chrysalis Project is becoming a reality.

With 70,150 square feet of thoughtfully designed space, the new hospital will include 18 inpatient beds, two acuity-adaptable rooms, and all core services under one roof, from emergency care and imaging to a pharmacy, lab, and community education center.

As renderings were revealed and shovels hit the dirt, the message was clear: this is a turning point for Sandusky. And it’s just the beginning.