Coquille Valley Hospital
Sustaining Rural Healthcare: Coquille Valley Hospital
Coquille Valley Hospital (CVH) was originally built in 1969 by three regional logging mills for the care of their employees and families. Since then, the hospital has provided medical and emergency services to rural communities across southwestern Oregon. However, over the years the hospital has become outdated and overcrowded, with 11 providers working in a space designed for 10.
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Location: Coquille, WA
Size: 28,000 sq. ft.
Cost: $20M
Estimated Duration: 30 months
Estimated Completion: April 2026
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Client: Coquille Valley Hospital District
Architect: Davis Partnership Architects
GC: S+B James Construction
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Budget Management
Construction Management
Project Management
Stakeholder Management
Permitting
CVH was ready to expand and modernize their facility by constructing a new addition and remodeling the existing hospital. Impressed with our deep experience in healthcare development and construction as well as our extensive knowledge of coastal building, they selected Klosh Group to manage the effort.
Designed with the community in mind
The hospital renovation includes a 4,000 square foot remodel of the nurse’s station, pharmacy, medical imaging, and more. Meanwhile, a new 24,000 square foot medical arts building will be attached to the current hospital and feature an emergency department, laboratory, patient registration, an expanded behavioral health program, and specialized medical services.
It's an ambitious design—one that required careful pre-planning to ensure that the scope aligned with the client’s budget.
Using our client’s funds wisely
The hospital was financing the project with existing funds and a loan from the U.S. Department of Agriculture’s (USDA) Rural Development program. However, we couldn’t hire a contractor until the USDA approved their pre-application, which hindered our ability to conduct an in-depth cost analysis.
Rather than continue the design process without a clear financial picture, our team elected to briefly hit the pause button until we could create an accurate project budget. This proactive move helped prevent significant cost overruns down the road and ensured that key stakeholders would be on the same page.
A $3.3 million challenge
Once the contractor finally came on board and reviewed the construction specifications, the final estimate came in at $19.3 million—$3.3 million over the client’s construction budget. Working with the architect, we scaled back the design and shaved over $3 million off the estimate while preserving the total square footage CVH would need for future capacity.
We also worked with the USDA to get approval for the updated preliminary architect report, a major milestone that allowed our client to lock in their financing before interest rates rose. With financing dialed in, design work was able to resume, and construction is now slated to kick off in March of 2024.
Committed to health equity
Klosh group understands that sustaining the profound connection between healthcare facilities and communities is essential to the well-being of rural populations. By leaning on our expertise, CVH will be able to ensure their facility can meet and evolve with its growing inpatient and outpatient needs. We’re proud to help CVH offer the people of Coquille Valley increased access to quality, local, and sustainable medical care—because Oregonians deserve nothing less.