$11 million set aside for Sturgis Hospital from 2023 state budget
LANSING, Mich. — Michigan State Senator Kim LaSata voted in support of the fiscal year 2023 state budget plan Friday.
Sturgis Hospital has had to consider closing its doors in past weeks but is now is expected to receive $11 million in funding from the state budget, which was approved Thursday by the Senate.
Built in 1925, the Sturgis hospital was looking for a partner for years and was facing bankruptcy.
At a commission meeting on June 15, hospital officials asked the city for a $645,000 loan to help them keep their doors open as they awaited state funding.
- Loan request: 'A matter of life or death': Sturgis Hospital looks to secure funding to keep doors open
City commissioners unanimously approved a $645,000 loan to Sturgis Hospital at a meeting Thursday.
The loan is, “contingent on approval of the state grant money being funded, allowing a verbal notification by Wednesday, July 6, and making quarterly financial reports until the loan is paid.”
The loan would be disbursed from the City of Sturgis' American Rescue Plan funds, according to city leaders.
This would bridge the gap between now, and the $11 million state grant Sturgis Hospital expects to receive.
“The goal was to keep the hospital open for patients as the process to redesignate the facility as a ‘rural emergency hospital’ continues toward completion,” LaSata said. “This really is a critical issue for the community. The nearest hospital is across state lines there just really aren’t a lot of options for local families. I am relieved we were able to negotiate this and get the funding secured.”
State funding would allow the hospital to stay open and become a rural emergency hospital in Jan. 2023, according to LaSata.
This would go into effect when a new federal law takes place, allowing small hospitals to be recognized as a rural emergency hospital.
The budget will go to Gov. Gretchen Whitmer for final consideration.