New Owatonna Hospital frequently asked questions
Why did Owatonna need a new hospital?
The 903 South Oak Avenue facility, which dates back to 1931, is the result
of many additions over the years that no longer provide a coordinated or
efficient environment in which to provide care. The staff have done an amazing job of
working in this less than ideal space, but it does not provide the environment
needed to deliver care in the most efficient or effective manner for the future
of this community.
Based on today's standards, technology and needs – the current patient rooms,
operating suites, laboratory and rehabilitation areas did not provide the space
or privacy expected by patients, families, staff or physicians today. For example,
25 years ago Owatonna Hospital's emergency department was remodeled to care
for 3,000 patients annually. Today, more than 11,000 patients are treated in
the same space. The current facility is also landlocked in a residential area with
limited room for building or parking expansion.
How will the new hospital raise health care to the next level for our community?
The replacement hospital supports an integrated healthcare campus in the
region's health care sector. Patients have better access to appropriate care and
the greater number of medical services available locally reduces the need to
travel to the Twin Cities or Rochester.
What kind of economic impact does Owatonna Hospital have on the community?
Businesses look at the quality of health and education services when making
location decisions. Health care services must be high quality and conveniently
located for their employees. Investments in the new healthcare campus increase
our ability to attract and retain businesses. Owatonna Hospital has a direct
major economic impact on this community. For example, Owatonna Hospital:
- employs more than 350 people and has an annual payroll of $14.2 million.
- gives back more than $4 million annually to Owatonna in charity care programs, to non-reimbursed public program payments (Medicare and
Medicaid), to community health programs such as screenings and health fairs, and to social programs that address the needs of the community.
In addition, Owatonna Hospital creates a ripple effect throughout the local
economy by providing an anchor for other health care and support jobs. For
example, Owatonna Hospital:
- supports more than 700 additional jobs in the community.
- supports more than $61 million of income activity in Steele County.
How long did the construction take?
Construction began in September 2007. Patients will be accepted starting at 7 a.m., Friday, October 16.
Where is the new hospital located?
The new hospital sits on 20 acres and connects to the recently expanded Owatonna Clinic, off interstate 35 and 26th Street NW.
How will the old hospital building at 903 S. Oak Avenue be used?
Allina will transfer ownership back to the city. The city is looking for economic development opportunities for the property.
How many beds does the replacement hospital have?
The new replacement hospital features 38 beds based on patient volumes and projected growth for the area. The facility includes private patient rooms, with
the exception of the mental health unit. The design of the building will readily allow us to add space and beds when volume justifies expansion.
How much did the replacement hospital cost?
Total cost of the project was $51.6 million. Allina Hospitals & Clinics invested $46 million for construction, equipment and furnishings. Twenty acres of
land donated by the Owatonna Clinic-Mayo Health System several years ago, was valued at $2.6 million.
The remaining costs of $3 million helped fund special project features identified by the community in 2006, which include: a Reflection Center, Community Resource Center, Professional Education Center, atrium and enhancements to the rehab area. The special project features were funded through philanthropic donations by businesses,
organizations and individuals.
Will the new hospital cause the system to raise its rates?
The cost for services will not increase as a result of building the new hospital. There are much larger state and national forces that impact the cost of health
care. Some of these include:
- rising wages and health care workforce shortages
- increased costs for goods and services to provide the care
- higher demand for care from a growing and aging population
- more people living longer with chronic diseases that require continuous treatment
The system is striving to keep health care affordable, while retaining independence and local community control.
