Preston Memorial Hospital will receive a federal loan to help with construction of a new hospital.
Rep. David B. McKinley, R-W.Va., announced over the weekend that the U.S. Department of Agriculture will provide a $26 million loan through its Rural Development Funds program. The loan is to be repaid over 35 years at 3.5 percent.
The new hospital will replace the existing 60-year-old hospital and will be located on property donated by the Preston County Commission in Kingwood.
Officials of Preston Memorial Hospital announced Sept. 3 they had signed a letter of intent to become a member of the Mon Health System.
At that time, Preston Memorial officials said the deal also would aid in the financing and construction of the new hospital building about a mile from the existing facility in Kingwood. The new facility will be built next to Preston High School.
Preston Memorial Hospital President and CEO Melissa Lockwood said the new hospital will have 83,500 square feet. It will have expanded space for family practice, cardiology, pulmonology and orthopedics service, among others.
Lockwood said the estimated cost of the new facility will be about $27 million, and an additional $11.5 million will be set aside for equipment upgrades, site preparation and other costs associated with the project.
The projected completion date for the new facility is March 2015.