Regional Health of Rapid City to build $18M hospital under merger agreement

The city of Custer, S.D., and Rapid City, S.D.-based Regional Health have signed a merger that will include the construction of a new 42,000 square-foot, $18.43 million hospital to replace Custer's existing 54-year-old hospital, according to the Rapid City Journal.

Last week, Custer Community Health Services, which owned Custer Regional Hospital, signed a merger with Regional Health to cap off five years of negotiations. Under the merger, Regional Health will own and operate Custer Regional Hospital and finance $16.43 million of the $18.43 cost of the proposed new hospital facility.

The city of Custer will contribute up to $375,000 to the cost with revenues from a city sales tax. Custer Community Health Services will continue to provide an advisory board after Regional Health takes over ownership of the hospital.

The new hospital will house the same number of beds — 11 — but most of them will be in private rooms, instead of doubled as they currently are.

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