University of Michigan Invests $28M in Ionia Hospital Expansion

The University of Michigan’s Board of Regents has authorized a significant expansion of its health network in Ionia County, Michigan, approving a budget of $28 million for the development of a new ambulatory center. During the meeting on November 20, 2023, the board agreed to the proposal from U-M Health-Sparrow Ionia to construct a 31,000-square-foot facility adjacent to the existing hospital located at 3565 S State Road.

This new ambulatory center aims to enhance patient access to a wide range of health care services in Ionia. Services planned for the facility include primary care, imaging, oncology, orthopedics, and cardiology. Dr. David Miller, the executive vice president of medical affairs at the University of Michigan and CEO of Michigan Medicine, emphasized the institution’s commitment to offering high-quality health care as close to home as possible. He stated, “This new building will reflect University of Michigan Health’s ongoing commitment to serving our patients as close to home as possible by providing high-quality health care to all the communities in which we serve.”

Funding for this project will be sourced from U-M Health-Sparrow resources. The design and construction phase is anticipated to take approximately 30 months. Since its establishment in 2015, Sparrow Ionia has witnessed substantial growth in both inpatient and outpatient services, prompting the need for additional space to accommodate specialty clinics and primary care physicians. According to the Board of Regents memo, this expansion is essential to support anticipated growth in various clinical services.

Connie O’Malley, chief operating officer of the U-M Health Regional Network, expressed her enthusiasm for the project, stating, “We are happy to expand our community-based services and provide even more access to the clinical expertise of U-M Health. We are actively investing in the health care of the people of Ionia and expect this new facility will provide much-needed access to the best providers and best treatment options closer to their homes.”

This decision follows the $800 million acquisition of the Lansing-based Sparrow Health System, which was approved by the U-M Board of Regents in December 2022. The merger brought all Sparrow hospitals under the U-M Health System brand as of April 2023, reflecting a strategic effort to enhance health care services in the region.

As the expansion project moves forward, it is poised to play a critical role in improving health care accessibility for residents in Ionia County while reinforcing U-M Health’s commitment to community-focused medical services.