Punxsutawney Area Hospital Awards Bid for $18.2 million Construction Project
Posted on January 23, 2024 in Latest News
The Punxsutawney Area Hospital is pleased to announce Hallstrom Construction, Inc. as the awardee of the extensive Emergency Department Expansion and Outpatient Service Renovation Project. This comprehensive project will include the construction of a 14,000 square foot expansion and 13,500 square feet of extensive renovation along the south side of the hospital and an additional $5 million in equipment and technology costs. This $23.2 million project focuses on providing the community greater access to quality care. The total construction cost of the project is $18.2 million and will be financed through a loan from the U.S. Department of Agriculture. The low-interest, long-term USDA loan terms are more favorable than other commercial borrowing arrangements and are jointly guaranteed through the membership in Pennsylvania Mountain Care Network. The USDA loan funds are however restricted and can only be used for capital construction, leaving an additional $5 million in equipment and technology excluded from the great terms. Plans to fund the equipment and technology costs are currently underway with the support of the Punxsutawney Area Hospital Foundation. Hospital leadership is also proud to announce this project is part of the Build America Buy America Act, meaning all major building components will be American made which includes all iron, steel, manufactured products, and construction materials.
Hallstrom Construction, Inc. is a commercial general contractor that has been operating out of DuBois for over 85 years since Elmer Hallstrom founded the company in the mid-1930's. The company was incorporated in the late 1970's and has been a community-oriented employer throughout these many years. Hallstrom has extensive experience in the healthcare industry including hospital facilities and associated infrastructures, medical office buildings, behavioral health units and personal care facilities. They perform the majority of the general construction scopes of work whereby providing them with increased control over costs, schedule, quality, communication, coordination, and safety. Hallstrom Construction Inc. is one of the few local union contractors employing a combination of approximately 50 laborers, carpenters, cement finishers and iron workers from our three-county area. Being a family-oriented company that believes in supporting our local communities, leadership at Punxsutawney Area Hospital took into much consideration which potential contactor would be using local sub-contractors. Jack Sisk, President of the Punxsutawney Area Hospital states, “PAH recognizes the impact this project is making on the economy of the community, and we want to support local businesses as much as we can just like they support us.”
Hallstrom is devoted to employing local individuals, hiring local sub-contractors and buying from local suppliers in our region whereby keeping as much of this project in the local economy as possible. According to Barry Andrulonis, Project Manager “Hallstrom Construction Inc. is honored to have been selected by the Punxsutawney Area Hospital leadership team. We believe in the mission of the hospital and in this project. We can see the positive impact it is going to have in the Punxsutawney area and surrounding communities, and we are thrilled to be a part of it.”
The PAH ED & Patient Services Expansion project has an estimated construction schedule spanning approximately 24 months and being constructed in four main phases:
Phase 1: Emergency Department Expansion
Phase 2: Lab & Phlebotomy Expansion
Phase 3: Imaging-Radiology Alterations
Phase 4: Women’s Services & Imaging-Radiology Alterations
A construction project of this large size and scope requires a diverse team with different skills and expertise. According to Andrulonis, “Each member of the team plays a crucial role in ensuring the project's success and completion. The PAH ED & Outpatient Services project began with the high standards and expectations set by the leadership team of the Punxsutawney Area Hospital early on and is depicted in the high-quality design provided by JPT Architects, P.C. Hallstrom Construction Inc. along with our highly talented tradesman, experience sub-contractors and reliable suppliers are excited to join this team and do our part in making this a successful project and helping to ensure the success of the Punxsutawney Area Hospital for years to come.” The formal start date of the project is currently being determined but is anticipated to be within the next 60 days. PAH and PAH Foundation are excited to begin the construction process and simultaneously work on raising money for the Equipment and Technology costs. For more information about PAH, the Punxsutawney Area Hospital Foundation, and the Project, please visit www.pah.org.