Compeer Financial, community banks meet funding challenges for rural health care

GALENA, Ill.— Financing health-care facilities can be an enormous challenge for rural areas, and Farm Credit institutions and community banks are helping meet that challenge.

Compeer Financial, working with the U.S. Department of Agriculture, and Apple River State Bank and First Community Bank of Galena, helped arrange funding for a $34.5 million expansion and renovation project by Midwest Medical Center in Galena in 2024.

The first phase of the project is now complete, offering new services and providers to meet rural health needs, with the second phase now underway.

Compeer Financial led a $25.75 million financing package to support this vital health-care project, including:

• $20.75 million in construction-only financing, converting to a USDA Direct Loan upon completion.

• $5 million in USDA Community Facilities Guaranteed Loan Program construction and permanent financing.

“By partnering with local banks, Compeer Financial helps keep health care accessible to rural residents,” said Robert Madsen, vice president of rural vitality at Compeer Financial. “This transformative renovation allows MMC to provide their community top-quality care today and in the future.”

Collaboration with local community banks is central to Compeer’s approach, leveraging shared expertise and resources to facilitate projects like the MMC facility.

“These partnerships enhance access to essential services and support the long-term vitality of rural communities,” Madsen said.

Joel Holland, CEO of Apple River State Bank and First Community Bank of Galena, agreed.

“We’re thrilled to celebrate the MMC expansion project and partnership with Compeer Financial to bring essential health care to our home community,” Holland said.

Modernizing Health Care

The MMC expansion and remodel help ensure sustainable local health care. Project highlights include:

• New providers and services — orthopedics and sports medicine, rheumatology, urology, gynecology, interventional pain management, family nurse practitioners and a full-time dietitian.

• New fitness center — four times larger than before and now featuring more diversified classes, equipment and an indoor walking track.

• New infusion clinic — overseen by the rheumatology team.

Community Response

Impact on the rural community is already evident. Fitness center memberships have doubled since August and surgery department volume increased 35% in the first quarter of 2025.

“Patients have changed their loyalties to MMC as their primary care facility, for not only yearly physicals, but the care deserved during a medical need or emergency,” said Barb Hocker, director of the Galena Area Chamber of Commerce. “They have shifted away from the first stop in treatment to the only stop.”

Hocker said friends and colleagues have already experienced top-quality surgeries, physical therapy, weight-loss programs and educational seminars at the upgraded facility.

“I could go on and on about how MMC has made a difference in Galena and the small towns around,” she said.

MMC celebrated the expansion project by welcoming the community to an open house on April 10. The next phase, including a new surgery addition and remodel, began in March.

“It truly has been a privilege to continue serving our community in bigger and better ways,” said Tracy Bauer, president and CEO of MMC.

“We’d like to thank Compeer Financial and Apple River State Bank and First Community Bank of Galena for their partnership and support in making this project a reality.”