QuickTake:

Developers behind the McKenzie-Willamette satellite ER earlier said they hoped to open it in 2027, but documents filed with the city of Eugene suggest they need financing to move forward and asked for up to 10 years to build the project.

A new stand-alone emergency department in west Eugene faces “potential challenges” related to financing that could delay its 2027 opening.

Developers working on McKenzie-Willamette Medical Center’s proposed emergency department are asking the city of Eugene for an extension that would give them up to 10 years to build the project, documents filed with the city’s Planning and Development Department show.

Officials from McKenzie-Willamette, developers and architects working on the project told neighborhood residents in August that the emergency room could open to patients in winter or spring of 2027 with the ability to serve 40 to 50 patients a day.

But in an application filed last week requesting several code adjustments for the project, the developer is also asking the city to approve its conditional use permit to construct the building over a 10-year period, instead of the 18-month period typically granted under city code.

“Although the applicant intends to proceed with project development soon after (land-use) decisions are rendered, current construction costs, lending conditions, and grant opportunities present potential challenges,” the application filed Jan. 27 by Eugene-based TBG Architects + Planners says.

The extension to 10 years would “provide sufficient time to pursue and secure appropriate funding for this capital-intensive project,” and “allow the project team to thoroughly evaluate financing alternatives, respond to changing market conditions, and ensure long-term fiscal responsibility.”

A TBG official referred questions to a developer on the project, Nathan Philips, who said in an email that the development group “requested extended approval to maximize flexibility. We expect to begin construction when the (conditional use permit) is approved.”

He declined to respond to questions about the project timeline or financing.

A schematic review McKenzie-Willamette filed with the city in May estimated the construction cost at just over $16 million, though the figure doesn’t include additional costs like medical equipment and technology. A plan review submitted to the Oregon Health Authority indicates the emergency department would include 12 treatment rooms, two trauma rooms, a laboratory, behavioral health and pharmacy services, as well as diagnostic radiology services like X-rays, CT scans and ultrasounds.

Eugene has been without an emergency department since PeaceHealth’s University District emergency room closed in 2023. Since then, Eugene residents seeking emergency care have had to travel to McKenzie-Willamette or PeaceHealth Sacred Heart Medical Center at RiverBend, both in Springfield.

Both emergency departments saw large spikes in the number of emergency room patients in 2024, the year after the University District closure.

The west Eugene project would be a one-story, 18,800-square-foot building on a two-acre lot on Grant Street, between Sixth and Seventh avenues. It’s currently used for parking, documents show.

Former McKenzie-Willamette CEO David Butler announced in late 2024 that the hospital was discussing a free-standing emergency department in Eugene. Butler and the hospital’s chief nursing officer were fired in July. The hospital’s interim CEO, Gregory Brentano, attended the August neighborhood meeting about the project.

McKenzie-Willamette is owned by Quorum Health Group, which operates 12 hospitals in nine states, primarily in the West and Southwest.

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For more than a decade, Elon Glucklich covered business, government and health care for several dailies and online news organizations across Oregon. His reporting and commentary has been recognized by the Society of Professional Journalists and the Oregon Newspaper Publishers Association.