Olney Leaders Break Ground on New Hospital
With a warm spring sun overhead and a brisk breeze blowing, Olney Hamilton Hospital officials, staff, and community leaders gathered Monday morning to break ground on a new $33-million hospital that promises to continue the hospital’s 117-year legacy of care.
The ceremony began with a prayer led by First United Methodist Church Pastor Harrell Braddock, setting a hopeful tone for the project. Hospital Administrator Michael Huff, Board President Dale Lovett, Chief of Staff Dr. Mark Mankins, and project manager Dave Lilley offered remarks before board members, foundation trustees, hospital staff, and the construction and design team posed for the traditional groundbreaking photos, clad in hard hats and wielding shiny shovels.
The new facility, which will be built beside the current hospital’s Education Building — slated for demolition — will cover nearly 41,000 square feet.
Completion is expected in 16 to 17 months -- in summer or fall of 2026. Voters approved $33 million in general obligation bonds to fund the project in 2023 - on the understanding that the debt would be repaid by tax revenue generated by a wind farm and hydrogen plant in the hospital’s taxing district.
But the final plans for the hospital jumped from approximately $450 per square foot to over $600 per square foot due to inflation and supply chain issues. The size of the proposed hospital was scaled back, and the hospital board raised taxes on residents last year to close the budget gap.
The hospital board also voted to cut labor and delivery services and was considering downgrading the emergency room’s trauma designation to manage operational expenses.
Despite these challenges, Mr. Huff said the goal remains clear: to continue providing high-quality care close to home.
“Our goal is to have as much service here as possible so our residents don’t have to leave our community,” Mr. Huff said. “You will have access to the best quality care right here in Olney.”
Mr. Lovett reflected on the historic role the 117-year-old hospital has played in the community, saying, “If the old hospital’s walls could talk, they would confess that they are weary ... these walls long for renewal.”
Dr. Mankins, who has served Olney Hamilton Hospital for 37 years, acknowledged the difficulty of cutting maternity services, a cornerstone of many rural hospitals.
“Cutting labor and delivery services was an emotional and difficult decision,” he said. “I think there will be a chance for that to come back to Olney.”
Board member Lyndsey Miller, who has spearheaded efforts to raise an additional $7 to $9 million to build out labor and delivery services in the new facility, said the architects designed the new hospital to include space for maternity care if funding becomes available.
City leaders, including Mayor Rue Rogers, Police Chief Dan Birbeck, and several City Council members, joined the hospital leadership for the ceremony, and Chad Edgington, pastor of First Baptist Church of Olney and host of the local radio talk show Chad & Friends, carried the ceremony live.
Mr. Lilley, chief executive of Trinity Hughes Construction and project manager, spoke of the honor of helping the community modernize its health care services.
“On behalf of the design and construction team, it is an honor to build for the community,” Mr. Lilley said. “This is not just about building a hospital; it’s about strengthening a community, investing in a community. Now let’s go build a hospital.”
Dr. Steve Atchley, a member of the Olney Hamilton Hospital Foundation Board and grandson of hospital founder Dr. George B. Hamilton, spoke movingly about the legacy of care stretching back generations.
“I think that the spirits of Dr. Hamilton and both of my parents (Glenn and Kathrine Atchley) are smiling,” said Dr. Atchley, who came to Olney from his home in Colorado to attend the annual OHH Foundation Board meeting on Monday evening.
“I am hopeful that we can continue to provide the same high-quality medical care of the last 117 years.”