New Hospital on Track, Avenue J to Close ‘Soon’

The Olney Hamilton Hospital Board of Directors received an update last Friday on the progress of the new hospital project, as construction preparations accelerated with key contracts signed and site work underway.

Project Manager Dave Lilley told the board that although there was no formal report this month, important milestones had been reached. Hospital Administrator Michael Huff officially signed contracts with subcontractors last week, clearing the way for active construction to begin.

“You are moving from one big house to another big house,” Lilley told Mr. Huff, urging hospital staff to prepare by simplifying and clearing out unused items ahead of the move. “You need to tell your staff every day to get rid of one thing.”

The general contractor, Skiles Group, plans to permanently close Avenue J adjacent to the hospital campus soon. “One of these days, without any fanfare, there will be a fence across the road,” Mr. Lilley said. “The sign is up, we have barricades we are going to put up.”

Demolition of two structures on West Hamilton Street — the former education building and a house previously owned by former newspaper publisher David Penn — is scheduled to take place between now and May 10 to clear the site for construction.

Board member Carl Craig asked whether tariffs imposed during President Donald Trump’s administration had created any unexpected supply chain issues. Mr. Lilley said there were no surprises related to lead times or material availability.

Mr. Lilley also briefed the board on a recent “communication problem” with the City of Olney regarding permitting costs, but said the new, higher permit fee — which covers city inspections — was ultimately “more in line with what we expected.”

Safety around the construction site, which borders the Olney Independent School District campus, was another concern raised by the board. Board member Dave Lund asked what steps would be taken to protect students and the public.

“It will be fenced off, walled off,” Mr. Lilley said, noting that construction zones often attract curious onlookers. “People will want to drive by and look at this thing.”

The construction timeline for the new hospital is projected at 16 months, but Mr. Lilley cautioned that passing final inspections from the Texas Department of Health and Human Services could add additional time before the hospital opens its doors.

“They are now doing one-time inspections,” Mr. Lilley said. “They will come for a 100 percent inspection and fail it. I don’t know anybody who has passed (the first inspection), so they end up inspecting two times anyway.” The agency has already approved the hospital’s building plans, he added.