State Awards Hospital $2.45 Million Grant for HVAC Replacement

October 14, 2026

Missouri Valley Regional Medical Center, formerly Fitzgibbon Hospital, has been awarded a $2.45 million grant through Missouri’s Rural Health Transformation Program, Horizon 1, to undertake a comprehensive replacement of aging heating, ventilation and air-conditioning (HVAC) infrastructure throughout the hospital.

The competitive grant award represents a significant investment not only in the hospital’s physical infrastructure, but in the long-term sustainability of healthcare services for patients and families throughout Marshall, Saline County and the surrounding rural region. The investment was made possible via federal funds as part of the Rural Health Transformation grant program, administered through the State of Missouri’s Department of Social Services. The funding is designed to assist in stabilizing otherwise struggling rural hospitals and healthcare facilities.

The project will replace critical HVAC equipment that has reached or exceeded its expected service life, including a 24-year-old chiller and air-handling equipment originally manufactured in the early 1990s. The grant-funded project will include a new 300-ton air-cooled chiller, replacement of rooftop air-handling units and installation of specialized dehumidification units serving critical areas of the hospital.

For patients and community members, however, the significance of the project goes far beyond the equipment itself.

“This is an investment in the future of healthcare in this community,” said Kerry Noble, CEO of Hospital Operations for American Medical Administrators, which began overseeing hospital operations in early September. “Replacing these aging systems means we can spend less time responding to equipment failures and emergency repairs and more time focusing on the people who depend on this hospital. It gives us a much stronger foundation for the years ahead.”

HVAC systems may not be a greatly visible part of a hospital, but they are among its most important pieces of infrastructure. Replacing them translates into an investment in sustainability far into the future.

In a healthcare facility, temperature, humidity, ventilation and air quality are essential to patient comfort, infection prevention, clinical operations and the proper functioning of sensitive medical equipment.

The grant application, compiled by Foundation Director Andrea Barr and Director of Payor, Public and Governmental Relations Amy Weber, with input from Facilities Director John Jasper, documented that the hospital has experienced significant HVAC-related challenges, including emergency repairs and temporary measures to keep aging equipment operating. In the past three years alone, chiller failures, repairs and rental equipment have cost more than $200,000.

The new systems are expected to have an operational lifespan of approximately 20 to 30 years. That long-term perspective is one of the most valuable benefits of the project.

Rather than continuing to spend limited healthcare dollars repairing obsolete equipment one failure at a time, Missouri Valley Regional Medical Center will be able to move toward a modern infrastructure system that is easier to maintain, more reliable and more energy efficient.

“For a rural hospital, sustainability is about much more than balancing a budget,” said Noble. “It means having the infrastructure in place to continue providing care safely and reliably. This project gives us an opportunity to address a major long-term need rather than continuing to defer it.”

This aspect is particularly important in a rural community where healthcare alternatives can require significant travel.

Missouri Valley Regional Medical Center, formerly Fitzgibbon Hospital, serves residents of Saline County and portions of six surrounding counties. The grant application identified the hospital as a critical healthcare access point for the region, noting that alternative hospital services are limited and that the nearest tertiary facility is approximately 60 miles away.

In 2025, the hospital recorded nearly 15,000 emergency department visits and more than 1,500 ambulatory surgeries, in addition to providing a broad range of inpatient, outpatient, diagnostic and specialty services.

The Horizon 1 program is designed to address critical infrastructure needs in rural healthcare facilities, and the HVAC project was identified as a priority because failure of the aging systems could jeopardize the continued operation of essential healthcare services.

The award also comes at a significant time in the history of the hospital.

Following the hospital’s Chapter 11 restructuring and change in ownership, Missouri Valley Regional Medical Center is operating under new ownership and management. The new owners have indicated their intent to comply with the requirements of the Rural Health Transformation Program and move forward with the grant-funded project.

The grant award therefore provides an important opportunity to carry forward a project developed to address a longstanding need while establishing a more sustainable foundation for the hospital’s future. Once completed, the project will represent one of the most significant infrastructure investments in the hospital’s recent history.

For the community, that translates into something simple but essential: a stronger, more dependable hospital.

“Saline County needs a hospital that is here not just today, but for the next generation,” said Noble. “This grant helps us make a foundational investment in that future. It is about creating a facility that can be maintained responsibly, operate more efficiently and continue supporting quality healthcare in this region for many years to come.”