Mercy announces $247 million expansion in Northwest Arkansas

ROGERS -- Mercy Northwest Arkansas unveiled a $247 million expansion plan Wednesday that could add 1,000 jobs over the next five years.

"We're looking forward to how we can continue to contribute to this vibrant economy here in Northwest Arkansas, as well as take care of each other. That's what it's all about," said Steve Goss, Mercy Clinic president.

The plan includes a seven-story patient tower adding 150 beds to the hospital, several clinics in the region and expanded specialty care offerings.

Mercy also announced a University of Arkansas for Medical Sciences community internal medicine residency program. The program is a partnership with the Veterans Health Care System of the Ozarks. Eight residents will enter the program in July, adding eight each of the next two years until the class reaches 24 students.

Gov. Asa Hutchinson said he took a break from the legislative session in Little Rock to underscore the importance of Mercy's announcement. He said four generations of Hutchinsons have received health care at the Rogers hospital.

"Whenever you are talking about a $247 million investment, that's a big deal. Whenever you are talking over the course of years a thousand new jobs in the health care industry, that is significant for the economy of our state and the well-being of our citizens," Hutchinson said.

Mercy leaders began outlining expansion plans two years ago after completing a 2011 commitment to infuse $90 million into the Northwest Arkansas system.

Wednesday's announcement is the latest in a string of hospital expansions in Northwest Arkansas.

Washington Regional Medical Center in Fayetteville broke ground in January on a 66,300-square-foot medical office building and is in the midst of building a five-story, 105,000-square-foot women's and children's center.

Northwest Health System announced earlier this month it bought Physicians' Specialty Hospital in Fayetteville, making it Northwest's fourth hospital in the area. Northwest Health has hospitals in Springdale and Bentonville.

"All the health care systems realize we are a growing area and that health care is one of our most basic needs," said Mike Malone, president and CEO of the Northwest Arkansas Council. The council is a private, nonprofit organization collaborating with business and civic leaders to work on regional economic development, community vitality, educational excellence and infrastructure.

Goss said Mercy will try to raise $40 million to help pay for the building projects and create an education endowment including the residency program. Eric Pianalto, president of Mercy Hospital Northwest Arkansas, said fundraising will begin in about 90 days.

Pianalto said utility and site work is starting immediately for the new wing on the west side of the hospital. Construction should begin in about 60 days with an estimated completion set for July 2019, he said.

The hospital has 200 beds, and the additional space is needed, Goss said.

"We are plumb full right now most of the time," he said.

Mercy moved from downtown Rogers to the property along Interstate 49 in 2008 with the belief there would be plenty of space for many years, Pianalto said.

"It's without hesitation I can say we've exceeded the expectations that were set in 2008," he said. "Today we have new and exciting opportunities to meet today's needs and also look to the future and how health care is going to be provided in this community for years to come."

Goss said one way to meet the needs is to provide patients better access to care. Initial expansion plans include four clinics with three more being considered.

The first new clinic is set for Pea Ridge where Mercy bought land, Goss said.

Jackie Crabtree, mayor of Pea Ridge, said Pea Ridge has a physician in town, but it has been several years since they've had a full-service medical clinic.

"This will add to the good business climate we have here," Crabtree said. "It's just another building block to help us get to the next step."

Land deals are under negotiation for the other clinics, including a 30-acre site in northern Springdale, he said. Goss declined to give a location, but said it had to have good east-west access, as well as easy access to the Rogers hospital.

Mercy has one doctor in Springdale, the furthest the system reaches south. Goss said that doctor likely will anchor a new facility. The clinic will be similar to the 30,ooo-square-foot multispecialty clinic Mercy opened in Bella Vista in 2013, Goss said. It could also have a free standing emergency room, he said.

The internal medicine residency program will help the hospital find needed physicians, Goss said.

"Filling 1,000 jobs is a significant challenge to the plan," he said, noting Northwest Arkansas' low unemployment rate may point to a strong economy but means there are fewer people to hire.

Peter Kohler, vice chancellor for the University of Arkansas for Medical Sciences Northwest, said the residency program has been in the works for years and he's happy to see it finally get started.

"The key to making this a health care destination is training our physicians. We won't have enough people unless we train and retain those physicians," he said.

The Association of American Medical Colleges reports 57 percent of students graduating from the state's medical school, the University of Arkansas for Medical Sciences, stay in state. The national average for retaining these graduates is 45 percent.

NW News on 04/28/2016