Mercy hospital chain announces second phase of $1 billion health care expansion in northwest Arkansas
July 25-31, 2022
by Daily Record Staff
St. Louis-based Mercy Hospital, one of the nation’s largest hospital groups, announced on July 19 that it will invest $500 million in the next phase of its health care expansion in Northwest Arkansas.
Mercy’s announcement comes as the fast-growing northwest Arkansas corridor that encompasses Rogers, Springdale, Fayetteville and Bentonville has seen a recent influx of major investments in the region’s healthcare sector and medical community.
Across its multiple state footprint, Mercy has 900 physician practices and outpatient facilities, 3,400 Mercy Clinic physicians and advanced practitioners and more than 40,000 coworkers serving patients and families across Arkansas, Kansas, Missouri and Oklahoma. Mercy also has clinics, outpatient services and outreach ministries in Arkansas, Louisiana, Mississippi and Texas.
The first phase of Mercy included a nearly $150 million expansion of the St. Louis hospital chains’ namesake hospital in Northwest Arkansas in Rogers and surrounding medical centers in Springdale, Bentonville, Centerton and Pea Ridge. The hospital in Rogers included the construction of a new seven-story patient tower and health services expansion that was completed in November 2019. That 190,000-square-foot expansion has a price tag of $133 million.
Before that project began, the St. Louis hospital group spent more than 18 months researching the demand needs and looking at the gaps in care throughout the region before it unveiled the $247 million expansion plan in April 2016. At the time, Mercy Hospital officials said the northwest Arkansas community, which raised $20 million for the first phase of expansion, will also be asked to raise another $20 million for the second phase once that is announced.
Mercy’s second phase, announced by hospital officials last week, will bring total investment over the past decade to nearly $1 billion and will increase access to high-quality, low-cost health care. Among many upgrades, Phase two will include a state-of-the-art cancer center and nearly double the current number of primary care physicians and specialists.
“Phase two advances Mercy’s long-standing commitment to a growing Northwest Arkansas community and how we better serve patients in the way they want to experience personalized health care, close to home,” said Ryan Gehrig, president of Mercy Arkansas. “This is also a continuation of our dedication to low-cost, high-quality care, a value we have provided Arkansas families and businesses for decades.”
The $500 million investment by the Catholic Church-affiliated hospital group brings its total commitment to northwest Arkansas to almost $1 billion in less than a decade, officials said. In 2016, Mercy announced the $300 million phase one, which included a 275,000-square-foot patient tower, 1,000 new health care jobs, and primary care and specialty clinics in Benton and Washington counties.
In a region ranked by the U.S. Census Bureau as the sixth-fastest growing midsize metro area in the nation, Mercy’s continued growth is critical to its mission of meeting the needs of the community. The new $500 million NWA investment includes:
• A state-of-the-art cancer center
• An addition of more than 100 primary care physicians and specialists
• An expanded emergency department
• An expansion of isolation rooms
• Building out the top floors of the hospital to increase the number of patient beds to nearly 400
• New clinic locations
• Expanded services in primary care, neuroscience, emergency, women’s and children’s, orthopedics, gastroenterology and behavioral health
• Expanded ambulatory offerings to include urgent care, infusion and imaging
Mercy’s phase two delivers many resources that are needed to keep pace with the significant growth of the region, including the cancer center.
“We have been planning to add a comprehensive cancer center in Northwest Arkansas for many years,” said Dr. Scott Cooper, president of Mercy Clinic Northwest Arkansas. “Everyone has been affected by cancer in some way, and we need more cancer care resources in the region. Mercy provides faith-based, compassionate care close to home so Northwest Arkansas patients have the support of family and friends they need when receiving care.”
“Mercy continues to honor the legacy of the Sisters of Mercy, who arrived in Arkansas in 1850 to care for the sick and poor, by expanding access to health care in our region,” said Eric Pianalto, chief strategic growth officer for Mercy Arkansas. “My new role in strategic growth gives me the exciting opportunity to work with our leadership team to expand hospital services, clinic locations and recruit the primary care and specialty physicians we need to meet the growing demands of Mercy’s Arkansas communities.”
Mercy Northwest Arkansas has received a host of awards recognizing its service and commitment to patient care, quality and safety, including six straight As from the Leapfrog Group, top hospital by Fortune/IBM Watson Health and five-star ratings from the Centers for Medicare & Medicaid Services.
Mercy’s recently completed projects in Arkansas include:
• A $141 million, seven-story hospital tower in Rogers that provides space for expanded neonatal care, the McMillon Family Heart Unit, additional pediatric care and more
• A multispecialty clinic in Springdale with a 24-hour Emergency Room
• Six clinics in Northwest Arkansas
• A 22-bed dedicated orthopedic and spine unit
• A new inpatient rehabilitation unit
• Expanded neurology care for patients in both Northwest Arkansas and Fort Smith
• A $162.5 million emergency room and intensive care unit expansion underway in Fort Smith (expected completion date in late 2024)
• A rehabilitation hospital in Fort Smith
• A $42 million orthopedic hospital in Fort Smith, featuring 24 beds and 24-hour patient care
“Community support is extremely valuable for plans like this,” said Clark Ellison, vice president of Mercy Health Foundation in Northwest Arkansas. “Mercy will pursue philanthropic partnerships with community leaders, businesses, foundations and friends, and together we will further enhance community access to state-of-the-art equipment, technology and programs for families across the region. This initiative is a transformational opportunity that we believe the community will want to support. So, we welcome additional contributions that will help us meet the needs of the community even beyond what is currently planned.”
Mercy’s investment follows earlier announcements this year by Walton heir Alice Walton and her namesake philanthropic foundation. In late June, the Alice Walton School of Medicine announced the next steps in its development, including a new name reflecting its founder’s commitment and plans for a state-of-the-art medical education facility to be built in Bentonville.
Although no details of the project’s financial commitment have been released, construction of the 154,000 square-foot building now in the design phase will begin in spring 2023, with the goal of completing and welcoming the first class in Fall 2025, pending accreditation.
The facility will be located east of Crystal Bridges Museum of American Art in Bentonville, and connected through the trails to its sister organization, Whole Health Institute. Walton founded the world-class Crystal Bridges museum and art center in 2005 as a nonprofit charitable organization for all to enjoy. She gifted her art collection to form the basis of the museum’s collection, and the Walton family gifted 120 acres of land in downtown Bentonville as the site for the museum.
In April, the foundation and Washington Regional Medical System announced their intention to create a regional health system to improve health outcomes across Northwest Arkansas and beyond. A year ago, the Walton heir’s namesake foundation announced a joint initiative with the Cleveland Clinic to identify ways to provide access to the Ohio hospital’s renowned specialty care services in Northwest Arkansas. The initiative was formed after a study highlighted that area residents frequently leave the region in order to receive specialty care.
The Northwest Arkansas foundation that is funded by the Walmart heir and Washington Regional will soon develop operational plans for this new partnership, with an intent to finalize next steps during the remainder of this year.
Photo Caption:
Mercy Northwest Arkansas Hospital in Rogers
