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Bids awarded for $1M construction of new Rice Home Medical store in Redwood Falls, Minn.

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Bids awarded for $1M construction of new Rice Home Medical store in Redwood Falls, Minn.
Willmar Minnesota 2208 Trott Ave. SW / P.O. Box 839 56201

WILLMAR — Bids were awarded Wednesday for construction of a new Rice Home Medical store in Redwood Falls, clearing the way for the project to start next month.


Rice Memorial Hospital officials anticipate that the new store will strengthen Rice Home Medical’s Redwood Falls site as a regional hub for durable and home medical equipment sales and service.

The cost of construction is just over $1 million.

Bids were competitive, said Bill Fenske, chief financial officer of Rice Hospital. “Construction costs are lower than what we projected,” he said.

Contracts were awarded to the low bidders in four categories: Salonek Construction, general construction; B & J Electric, electrical; Chappell Central, mechanical; and Schmidt Construction, site work. Rice also has hired Marcus Construction as the construction manager for the project.

The new Rice Home Medical store in Redwood Falls replaces older retail space that was outdated.

The new location is expected to enhance Rice Home Medical’s ability to serve this segment of the health care market. Rice Hospital officials said the store has a history of strong sales, with a regional market that extends west to Marshall and east to New Ulm and Mankato.

It’s one of three Rice Home Medical outlets undergoing improvements this year. Remodeling and renovation also are slated at the Alexandria store and at the main store in Willmar.

All three projects are part of a business strategy to increase Rice Home Medical’s sales and market presence in the region, with an emphasis on retail and specialty products and services, such as wheelchair repairs and home adaptation, that address what Rice Home Medical sees as a growing consumer demand.

Fenske said a financial analysis projects an 11 percent internal rate of return for the Redwood Falls store as a result of building the new store.

Anne Polta

Anne Polta covers health care, business/economic development and general assignment. Her HealthBeat blog can be found at Follow her on Twitter at @AnnePolta.

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