Fort Loudoun Medical Center Receives State Grant Award to Fund Hospital Expansion

Expansion Project Will Add 26 New Patient Rooms

Lenoir City, Tenn. – Tennessee Health Commissioner Ralph Alvarado, MD, FACP, joined leaders from Fort Loudoun Medical Center and Covenant Health on July 30, 2024, to review the hospital’s plans to increase its footprint and bed capacity with funding from the Tennessee Department of Health through the Health Resiliency Grant program.

“Access to facilities providing quality health care and services is more important than ever in Tennessee’s local communities,” Dr. Alvarado said. “Leadership in both the public and private sectors is exactly how we improve the culture of health and healthcare in Tennessee, and how our state becomes the model in the southeast U.S. for meeting the needs of citizens where they live, work, play, and worship.”

In 2023, Fort Loudoun Medical Center received a $5.9 million Capital Improvement Grant from TDH’s Health Resiliency Program. The medical center will devote the funding to an 18,000-square-foot expansion project that will add 26 patient rooms.

“We are immensely grateful to receive the Health Resiliency Program grant — it enables us to expand our hospital facilities and be a trusted, valued healthcare partner to our community,” said Connie Martin, president and chief administrative officer of Fort Loudoun Medical Center. “The funds will allow us to provide enhanced medical care to those we serve, ensuring that every patient receives the best possible care.”

The expansion is named The Brethen Foundation Advanced Care Wing. It will be anchored by a state-of-the-art, 11-bed intensive care unit. The new unit will more than double the medical center’s current capacity for critically ill patients. Martin said the space vacated by the relocation of critical care will transition to Fort Loudoun Medical Center’s emergency department. The department has seen a significant increase in visits over the past couple of years.

“Covenant Health has a commitment to providing excellent medical care in local communities. The dedicated employees and physicians of Fort Loudoun Medical Center are looking forward to expanding the ability to care for this growing region of Tennessee,” said Jim VanderSteeg, president and CEO. “We’re grateful to the Tennessee Department of Health for this significant capital improvement grant, and to The Brethen Foundation for its generous donation to help fund the project.”

VanderSteeg thanked the hospital staff and engineering/construction teams who are working to make the expansion project a reality, and recognized the support of community partners and local government officials. Attendees at the check presentation included Ralph Alvarado, Tennessee Dept. of Health Commissioner; JW Randolph, Deputy Commissioner for Health Strategy and Regulation; Lt. Gov. Randy McNally and Rep. Lowell Russell. Jeff Harris, mayor of Loudon, and Rodney Grugin, president of Loudon County Chamber of Commerce, also attended, along with Andy Westbrook with BarberMcMurry Architects and Kenneth Keel with The Christman Company.

Fort Loudoun Medical Center began site preparation work for the new wing in May after breaking ground in November 2023. Foundation and underground utility work are currently underway, along with planning for steel and joist installation. The new intensive care unit and expanded emergency department are expected to open in early 2026.

TDH’s Health Resiliency Program is the result of the Tennessee Resiliency Plan with oversight from the Tennessee Financial Stimulus Accountability Group. The group is a bipartisan legislative and executive branch committee charged with planning the use of federal funding available to states through the American Rescue Plan Act of 2021.

Tennessee received $3.9 billion in total ARPA funds, with $240 million committed to TDH for healthcare modernization and transformation projects.

The mission of the Tennessee Department of Health is to protect, promote, and improve the health and well-being of all people in Tennessee. Learn more about TDH services and programs at tn.gov/health.

Fort Loudoun Medical Center is a member of Covenant Health, a not-for-profit healthcare delivery system serving East Tennessee and the surrounding region. Located in Lenoir City, the 50-bed medical center offers medical services including critical care, cancer services, diagnostic imaging, and rehabilitation programs. Fort Loudoun Medical Center is certified by The Joint Commission as an Advanced Primary Stroke Center. For more information, visit FtLoudoun.com.