Economic conditions and the uncertainty of a federal funding program are impacting efforts to get a new hospital in International Falls off the ground.
Rainy Lake Medical Centre was eying land along the Rainy River as the site for a new facility.
The existing facility is more than 50 years old and has outgrown its space, making it difficult to operate efficiently.
Chief Executive Officer Robb Pastor says a new facility is needed.
“Our commitment to this project has not changed,” states Pastor in a statement.
“What has changed is the environment around us. Federal policy uncertainty and rising interest rates have made it more difficult to move forward under the original plan.”
One of the concerns is the refocus of the United States Department of Agriculture’s Rural Development program.
The program has long supported rural hospital projects, but recent changes are forcing organizations to reassess projects.
“We will not move forward in a way that puts the long-term stability of this organization at risk, states Pastor.
“Maintaining our independence is critical. Given the level of uncertainty at the federal level, it would be irresponsible to proceed without fully understanding the long-term financial impact.”
Rainy Lake Medical Centre is exploring alternative funding sources that ease the reliance on federal support.
“There is a significant amount of work happening behind the scenes, states Pastor.
“We are committed to moving this project forward, but we are also committed to doing it the right way.”
