PANAMA CITY, Fla. (March 15, 2019) -- Ascension’s Sacred Heart Health System has announced plans to launch a $47 million project to rebuild facilities and services at Bay Medical Sacred Heart in Panama City.   Sacred Heart plans to reopen 144 additional beds in the hospital’s south tower and relocate other services and physician offices that were impacted by Hurricane Michael last year.

Sacred Heart is part of Ascension, one of the nation’s leading non-profit and Catholic health systems.

The rebuilding of Bay Medical will take place over the next year and create a facility with 185 private rooms. The improvements include major upgrades to information technology and creation of new space for physician offices and other services, including the laboratory, imaging and pharmacy.

“We are excited about the future of Bay Medical and this opportunity to rebuild healthcare services to benefit all the residents of Bay County,” said Tom VanOsdol, president and CEO of Ascension Florida. “The community is on the road to recovery and we’re fully committed to playing a key role in that long-term effort.”

He added: “As part of Ascension Florida, Bay Medical is now backed by the full strength and resources of a statewide and national health system that strives to provide personalized, compassionate care close to home.”

The hospital campus will undergo a major cleanup and beautification effort that will require demolition of some campus buildings. The project to enhance the appearance of the campus will result in additional parking and space for potential future growth.

“As we grow our services, we will continue to look for ways to provide both inpatient and outpatient services in ways that best match the needs of the post-hurricane community,” VanOsdol said. “Sacred Heart has served patients from across Northwest Florida for more than 100 years. We are committed to improving access to high-quality care within a strong national system that can advance the long-term health of this community.”

Sacred Heart leaders will work closely with community and hospital leaders as well as state and federal agencies and legislators on matters related to the timing of the multi-stage reconstruction work, and also provide periodic updates to help keep everyone informed of our plans and progress.

The announcement about rebuilding Bay Medical comes after Ascension and Sacred Heart closed a deal to fully acquire the hospital and assume operations.  

In addition to Bay Medical, Sacred Heart operates hospitals in Pensacola, Miramar Beach, and Port St. Joe, as well as providing physician offices in every county between Pensacola and Apalachicola. In addition, Ascension Florida also operates three hospitals in Northeast Florida.


About Sacred Heart Health System
In Florida, Ascension operates Sacred Heart Health System based in Pensacola and St. Vincent’s HealthCare based in Jacksonville. Ascension’s facilities in Florida include seven hospitals and more than 100 other sites of care. Together, they employ more than 10,000 associates. Across the region, Sacred Heart and St. Vincent’s have served North Florida communities for more than 145 years. Ascension is a faith-based healthcare organization dedicated to transformation through innovation across the continuum of care. As one of the leading non-profit and Catholic health systems in the U.S., Ascension is committed to delivering compassionate, personalized care to all, with special attention to persons living in poverty and those most vulnerable. Ascension includes approximately 156,000 associates and 34,000 aligned providers. The national health system operates more than 2,600 sites of care – including 151 hospitals and more than 50 senior living facilities – in 21 states and the District of Columbia. For more information on Sacred Heart Health System, visit