Ontonagon Township Supervisor Steve Store speaks about the Ontonagon Health Care Committee’s work to convert the former Maple Manor into an emergency room and assisted living facility during a public informational session Wednesday. (Garrett Neese/Daily Mining Gazette)

ONTONAGON — A task force working to create a new hospital in Ontonagon updated nearly 100 residents on their progress at a meeting Wednesday night. 

The Ontonagon Township board voted in August to accept the deed of the former Maple Manor nursing home property from local construction company owner Norman Pestka. The involvement of a government entity is a prerequisite for some federal and state funding. 

Another requirement is a feasibility study, which the task force is currently preparing, Pestka said. The new facility would have an emergency room and a 36-bed assisted living facility, which would need to be run separately. 

Pestka said he had started looking at the project out of concern for residents and visitors who would be forced to travel to Baraga or Ironwood after the closure of Aspirus Ontonagon Hospital in April.

The goal of the new facility would be to stabilize patients before they are transported to a larger hospital. 

“We didn’t want to start a hospital like Aspirus had and have surgery, because it’s been known that you can’t run a hospital and have surgery in a small community, because there just is not enough patients to do major surgery here,” Pestka said.

Before it can operate, the facility must also get a certificate of need through the state Department of Health and Human Services; Michigan requires the certificates to ensure a new facility is not needlessly duplicating medical services found nearby.

Pestka, who had put nearly $230,000 of money into the building, will cover the costs of maintenance and upkeep until a non-profit hospital can be found to operate the facility. He said three doctors and an administrator are willing to work at the hospital.

The township’s resolution states the building will revert to Pestka if the property is not being used as a hospital by Jan. 1, 2027. 

“That date can be moved, it can be changed, but we want to have everything in operation by then,” said township Supervisor Steve Store.

It is expected to cost $7 to $8 million to turn the building into an ER and assisted living facility and bring it up to code, Pestka said. 

Helicopters would be able to use a nearby football field for medical transports, Stone said.

Some additional money has already been lined up, Pestka said. They secured a loan of $8 to $10 million at 3% interest working with a Wisconsin bank that is taking on the application for a Small Business Administration loan. 

State Rep. Greg Markkanen said there’s also a bipartisan effort among state and federal legislators to get appropriations for the hospital, saying “we cannot be the only rural county in Michigan that does not have health care.” 

At the federal level, the hospital task force is pursuing a Rural Emergency Hospital designation, which could bring in about $270,000 a month in revenue. 

The task force had also looked at receiving state brownfield money for remediation, but learned it could not be applied to that site, Pestka said. 

Wednesday’s meeting had originally been scheduled to be held in the day room at Maple Manor, but was moved after someone called Michigan Occupational Safety and Health Administration with complaints about asbestos in the building, Store said. A subsequent MISOHA inspection failed to find any asbestos, he said. Pestka said Pearson Asbestos had found no asbestos during a survey in the spring.

Pestka said once they receive authorization, the task force hopes to have an open house at the former Maple Manor building so people can see it.

Markkanen sought to address any skepticism in the community, telling the crowd “this is a legitimate effort.”

“We’re covering the bases, we’re getting the certificate of need,” he said. “We’re doing the foundation work to make sure it’s done right, and that it lasts, and that it has longevity, and it serves the community. Norm and everyone up here has done a lot of groundwork, and there’s no personal agenda here. If there was, I’d step aside and I’d be up here telling you this isn’t good, but it’s just the opposite. I don’t think there is a groundswell effort like this anywhere in Michigan.” 

Pestka anticipates the new facility will produce between 40 to 50 jobs in the community. He estimated nurses’ pay would be around $35 an hour, with people on the floor making $20 an hour. 

“You’re going to be hard-pressed to find that kind of money for jobs in Ontonagon,” he said. “We will create that.”

Ontonagon Township also created a separate account for people to donate towards the facility. It is kept separate from other township funds, and requires multiple township employees to authorize transfers out, Store said. Michigan Technological University physics professor Miguel Levy made the inaugural $500 donation at Wednesday’s meeting. 

Residents who attended said they were hopeful about the new hospital. Theresa Miller of Ontonagon appreciated hearing about the group’s progress and the steps they’re taking to properly organize the new facility.

“We’re just glad we have people who are trying to help us,” she said. “So it was very informative in answering a lot of questions.”