The Hugo Stayer-Fall 2023 Edition

The Hugo Stayer-Spring/Summer 2023 Edition

Generations Frequently Asked Questions

Q: What current factors have led us to conclude we need a new building just to continue existing services? 

A: We have 3 options

1. Do nothing (we get closed down drastically, or gradually scale back services until we are no longer financially viable).

2. Renovate (see why renovation is not an option)

3. Build New Hospital 

Q: Why is renovation not an option?

A: The estimated cost to “renovate” our current facility would cost approximately 2x the cost of the new facility with the same space restraints we face now, in fact lead to reducing services, and still leave us with a facility that does not meet the needs of our community. 

The current facility does not allow us to do the things we need to do within our current scope of services. A perfect example of a current facility restriction is our Orthopedics program. We have successfully performed nearly twenty total knee replacement surgeries. Patients who are in need of a total hip replacement want to have that surgery completed at Lincoln Health. Our surgeon is capable, our staff is capable, however, our single operating room, is too small. Those surgeries must be sent elsewhere with appropriate operating facilities. 

  1. The size & location of the current operating room restricts us from expanding our surgical capabilities. 
  2. To evolve our long-term care services and be reimbursed fairly, we need a new building. 
  3. Our current building does not meet compliance to offer OB services. 
Q: Will this new facility lead to an expansion of services?

A: Yes- as listed above, with a new facility we will be able to: 

  • Expand our surgical capabilities 
  • Expand outpatient procedures 
  • Offer OB 
Q: Will OB services be offered if a new hospital is built?

A: We are exploring the possibility of OB services. Our community has expressed the desire and there is a real need in our region as there is not a facility offering OB within 100 miles of our hospital. This service is complex and requires volume of births both to pay for costs associated with providing the service but also in keeping staff trained and ready. 

Q: Will there be a nursing home within the new hospital?

We will still provide long-term care services in the same way that we do now to residents of the care center but the structure will be different. There are 10 designated beds for long-term care, which you will often hear referred to as “Swing Beds 

Q: Will a new facility cost me (the patient) more money for the same services?

A: No. There is a complex discussion here around cost-based reimbursement and how it works with insurance companies, but in short, this new facility will not cost you one extra penny. We will be paid more for the services rendered by government payers, not the patient themselves. Newer facilities in our region are reimbursed MORE from government payers for the same services. Our current hospital was built over sixty years ago, and we are, in fact, paying a bit of a government tax for NOT updating our facilities. That’s wrong, and we will not settle for a sub-par facility for our patients. 

Q: How does our current facility limit our ability to offer additional services or care for more volume?

A: Our current building is apx. 45,000 sq. ft. and doesn’t meet regulations for hospitals which set requirements for the size of all useful spaces within our building, such as private patient rooms, ADA restrooms, working showers in each room (which we do not have now) OR size and location for infection control. The new facility is currently projected to be apx. 100,000 sq. ft. just to bring us in compliance with current regulations.  

Q: What is the status of design?

A: We are working with a design team and have conducted site visits of similar sized hospitals across the state. The internal layout has been mapped and as construction costs fluctuate, we continue working on a design that is cost effective but makes sense for generations to come.

Q: What is expected cost and how will this be financed?

$77 million 


  • $50 million debt capacity as determined through our lender USDA 
  • $15 million Federal Grants 
  • $7 million State & Local Government Support 
  • $5 million Private Philanthropy 
Q: What will happen to the existing building once the new building is completed?

A: The building will have to be demolished  

Q: You have said you are committed to build this new facility without a tax increase, does this mean you can do it without community support?

A: No- we will not ask for a tax increase, but we need all the community support we can get. This may be in the form of a financial contribution, testimonials of patient stories, or help fundraising. This is your hospital and we want our community involved.  

Q: What is the timeframe for this project?


  • Funding of this magnitude is multi-faceted. Working with the USDA to secure funding has proven to be time consuming but we continue to respond to the lenders request for information. 
  • Once funding is secured, we anticipate a 12-month construction period.  
  • Today is the least expensive day to start building 
  • In building a new facility- we are building a hospital for 60-80 years into the future, a generational facility 

More Soon!

Stay tuned to find out how you can get involved

Modern healthcare for 65 years to come

Trusted care, modern facility, for your family, and your children's children.

More Information:

111 6th St.

Hugo, CO 80821