Perry County has closed on a $40 million bond to finance a new hospital.

Perry County Memorial Hospital President and CEO Joe Stuber told the hospital’s Board of Trustees at a meeting last Wednesday that the hospital was able to take advantage of a lower financing rate for a bond from the US Department of Agriculture, who is financing the new project. The USDA bond’s rate was 3 and one eighth percent, down from the 3.5 percent rate used in the project’s initial feasibility study.

Stuber says the USDA rate will save a lot of money for the hospital board as it begins repayment of the funds on a 40-year payback plan.

Hospital contractor Weddle Brothers Construction Company of Bloomington announced that they were planning to begin construction this upcoming Monday, according to Stuber.

Stuber says Weddle Brothers is estimating that it will take about 18 months to build the new hospital, meaning that the hospital will likely be ready to open in late 2014.

The new hospital will be located along Indiana State Road 237.