Victoria Co. weighs additional funding for ICU expansion

Published 5:15 am Friday, August 1, 2025

In 2022, Citizens Medical Center began paving the way to expand its intensive care unit using funds through the American Rescue Plan Act (ARPA) from Victoria County. along with certificates of obligation (CO), philanthropy and the hospital’s reserve funds.

The hospital officially broke ground on the expansion project in April 2024 and is expected to be completed January 2026. On Monday at Commissioners Court, the hospital requested a series of COs that will go towards completing construction of the building, equipment purchases and replacement of the elevators in the North Tower.

“Citizens has requested certificates of obligation from the county, which is a common, cost-effective way for county-owned hospitals like ours to fund major capital projects apart from our operating budget and take advantage of low interest rates tied to the county’s excellent credit rating,” Mike Olson, CEO of Citizens Medical Center, Mike Olson, said in a statement.

Initially, the hospital received just under $10 million in COs and $2.75 million in APRA funds for the project.

“Like many Texas hospitals, Citizens faces challenges from rising costs and declining reimbursements, coupled with our recent investments in a needed electronic medical record system launched in February,” Olson said. “Through changing times, we remain financially responsible with multiple initiatives underway to reduce expenses and increase revenue while maintaining our competitive wages and top-notch hospital staff.”

As a community hospital, Citizens Medical Center is owned by the county government. In the coming weeks, the county will develop and finalize the details of the CO the hospital has requested.

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“This will be structured the same way it was last time where as the owner of the hospital the county will issue the COs,” Victoria County Judge Ben Zeller said. “The memorandum of understanding is in draft form and will be on the hospital’s agenda next month to formalize. There is a 45-day clock that begins with the notice of intent.”

“The hospital board will review the funding proposal and, if approved, present it to Victoria County Commissioners Court for consideration,” Olson said. “Citizens remains committed to serving our community with outstanding care, trusted physicians, and continued investments in the future of healthcare here at home.”

The COs that were requested by the hospital Monday are in addition to the initial COs and ARPA funds the hospital had received prior to construction.

Madison O’Hara is a news reporter for the Victoria Advocate. You can reach her at madison.ohara@vicad.com.