Huntsville Hospital Health System is expanding its footprint in north Alabama with plans to build a new medical facility in Lawrence County.
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The health system has received Certificate of Need approval from the Alabama State Health Planning and Development Agency for construction of the project, which will be located on Highway 24 in Moulton. The development represents a $14 million investment in construction and equipment.
Construction is expected to begin in May and be completed within 14 to 16 months, positioning the facility to open in late 2027 if timelines remain on schedule.
Jeff Samz, HH president and CEO, said the facility represents a strategic investment in strengthening rural healthcare delivery across Alabama.
“Improving local, community-based health care services is critical to our mission. We are proud to partner with Lawrence County to offer state-of-the-art facilities and continue to improve health care access for its residents,” Samz said in a statement. “Operating rural health care services is very difficult in Alabama, but with the continued support of the community, we believe this new approach will provide a path to sustainable delivery.”
Rural hospitals across the state have faced mounting financial pressures in recent years due to staffing shortages, reimbursement challenges and declining inpatient volumes. By shifting toward a modern outpatient-focused model, Huntsville Hospital aims to create a more sustainable framework that maintains essential services while adapting to changing healthcare utilization trends.
Once complete, the 10,000-square-foot facility will include:
The 20-acre site provides ample space for future expansion, allowing Huntsville Hospital to scale services based on population growth and evolving community needs.
Kelli Powers, president of Decatur Morgan Hospital, said the new facility will offer enhanced imaging capabilities, including 3D mammography, as well as upgrades to CT and MRI services.
“We’ve been very pleased with the utilization of our current outpatient services at LMC and continue to see the community take advantage of local care,” Powers said.
The addition of advanced imaging and therapy services is expected to reduce travel times for Lawrence County residents who previously had to seek specialized care in larger neighboring cities.
Last year, Lawrence Medical Center in Moulton entered into a new partnership with Huntsville Hospital and ended inpatient and emergency department services at its existing facilities. Since that time, services have continued as an outpatient department under Decatur Morgan Hospital, which is part of the Huntsville Hospital Health System.
Decatur Morgan will oversee the development and long-term management of the new Lawrence Medical Center facility, ensuring operational alignment with broader system standards and care coordination strategies.
LMC currently operates four rural health clinics in Lawrence County, providing primary care services that complement the upcoming outpatient-focused facility.
Huntsville Hospital Health System maintains facilities across north Alabama, including locations in Huntsville, Madison, Athens, Decatur, Boaz, Fort Payne, Guntersville, Moulton, Red Bay, Sheffield, Scottsboro and Fayetteville, Tennessee.
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The new Lawrence County project reinforces the system’s commitment to decentralized care delivery — bringing diagnostics, urgent care and rehabilitation services closer to rural residents rather than relying solely on large centralized hospitals.
For Lawrence County, the $14 million investment represents more than just new construction. It signals long-term confidence in the region’s healthcare infrastructure and aims to stabilize access to essential services while creating construction activity and healthcare employment opportunities in the area.
As rural healthcare models continue to evolve statewide, the Lawrence County facility could serve as a blueprint for similar community-based expansions across Alabama.
Originally reported by Leada Gore in Al. Com.
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