Compass Memorial reveals next phase of expansion

MARENGO — Midway through its current construction project, Compass Memorial Healthcare has committed to another $42 million expansion.

Compass Chief Executive Officer Barry Goettsch explained the project to the Marengo City Council Jan. 7. The city will complete a paving project and work on water mains in the surrounding area at the same time.

During the Dec. 30 meeting of the Marengo City Council, Public Works Director Lonnie Altenhofen, said the city will take the opportunity to replace two old four-inch water mains and put everyone on a new six-inch main on Franklyn Avenue during the hospital project.

The City will also install a water main under Main Street. The improvement was recommended because of the growth of the hospital, said Karla Marck, who was the Marengo city administrator at the time.

Currently the north side of Main Street is connected to a four-inch water main in an alley at the old pool sight, said Altenhofen. The south side of Main goes all the way to Washington Street, he said.

If the city puts a main in the block of Main Street near the hospital, all the residences on Main Street can be hooked to that water main, Altenhofen said.

The entire Main Street project might take two years, he said.

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During the Jan. 7 meeting of the city council, Goettsch presented drawings of the hospital expansion project approved by the hospital’s board in December.

Compass plans to erect a two-story building on Franklyn Avenue near Lucas Street which would house its family medical center. Right now some of the hospital’s new health providers are working out of spaces not meant for physicians, said Goettsch, including former closets.

“It’s kind of an indicator that maybe you’re outgrowing the space you’re in,” Goettsch said.

The new building would have X-ray facilities, 24 exam rooms and a retail pharmacy with a drive-thru window.

Education and training space will occupy the second floor.

At the front of the hospital, near the emergency entrance, office space will be remodeled to provide 2,800 square feet for the oncology department and nearly 5,000 square feet for physical therapy.

Compass doesn’t want its patients to have long wait times, said Goettsch, so the hospital will expand its physical therapy space, add aquatic therapy and bring two new physical therapists on board.

In the northwest corner of the hospital campus, at the corner of Western Avenue and West Lucas Street, Compass will add a third operating room and expand its inpatient pharmacy.

Compass plans to break ground Sept. 1.

Historically the hospital has worked well with the city, said Goettsch. It wants to be a centerpoint of the community, he said. “If the city isn’t successful, the hospital struggles,” said Goettsch.

Most of Compass’s 265 employees live in the service area, and many live in Marengo, Goettsch said.

Wendy Jordan, chief financial officer for Compass, said the hospital has seen an 802% growth in visits since 2016. Surgery has seen a growth of 256%.

“We need more room for surgery,” Jordan said. The addition of an orthopedic surgeon last year has increased the number of surgeries.

“We are scheduling procedures in both ORs,” said Goettsch.

Putting in a third operating room will displace the oncology department, which will move to the south side of the hospital in the renovations. Oncology has seen a growth of 880%, Jordan said.

Physical therapy has seen a 38% growth, but that’s because of limited space, Jordan said. With an additional physical therapist on staff, Jordan expects another 20% increase.

“Financially we are able to take on this [debt],” said Jordan. The project is expected to be finished in 2032. Auditors have said that, based on its history, Compass could take on $98 million of debt. This project is half that, Jordan said.

As a municipal hospital, Compass is obligated to inform the city of its plans, said Goettsch, but he made clear that the city has no liability if Compass defaults.

“We don’t cost the city of Marengo or the county a dime,” said Goettsch. Compass receives no tax subsidy from any government, he said.