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Home Construction

Orange Regional hospital plans $100M consolidation project

John Golden by John Golden
April 29, 2015
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Officials at Orange Regional Medical Center plan to consolidate most outpatient services and expand and renovate the hospital”™s cancer center on its main campus in Middletown in an approximately $100 million construction project expected to begin this spring.

Representatives of the 383-bed hospital, one of two in the Greater Hudson Valley Health System serving residents of Orange and Sullivan counties, presented their project proposal Jan. 29 to a review committee of the state Health Department”™s Public Health and Health Planning Council, which must approve or reject the application based on need for the medical services. Health Department officials already have recommended the project be approved contingent upon the hospital meeting certain financial and construction requirements.

Orange Regional officials propose to build a five-story medical office building on its 707 E. Main St. campus and relocate there many outpatient services currently provided 1 mile away at the Orange Regional Medical Pavilion in Middletown. The new medical office building would also house outpatient services provided at its Patient Services Center and Radiation Oncology Extension Clinic in Goshen, which would be vacated when the project is completed. Hospital officials said the nearby medical pavilion in Middletown would continue to operate a sleep center and wound care clinic.

ORMC officials in their application said the proposed project “will increase the ability of the center to respond to a patient”™s needs by shortening supply chains and improving communication.” The hospital also expects to improve its emergency department triaging process and reduce emergency room visits on its main campus by relocating its primary care clinic in Goshen to the Middletown campus.

The Dormitory Authority of the State of New York has indicated it will provide about $68.5 million in bond financing for the approximately $99.9 million project. The hospital also has available about $5 million in outstanding bond proceeds from its 2008 construction of a replacement hospital. Orange Regional will put approximately $16.8 million in equity from operations into the project.

Health Department officials said the project must be completed within three years after the Public Health and Health Planning Council recommends approval of the project to the state health commissioner. The council is scheduled to vote on the proposal at its Feb. 12 meeting.

Construction is expected to be completed in 18 months.

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