Frederick hospital project receives funding boost
For Immediate Release
August 6, 2026
OKLAHOMA CITY — The Memorial Health of Tillman County Critical Access Hospital which is currently under construction in Frederick, Okla., recently received $21 million of New Markets Tax Credits (NMTC) allocation to support its construction and ongoing operations. The rural hospital, which closed in 2016 after 63 years of providing essential medical services, is expected to resume serving the community when construction is completed in November 2027.
The NMTC is a federal tax credit administered by the U.S. Treasury Department's Community Development Financial Institution (CDFI) Fund which helps attract private investment to high-impact economic development projects through certified Community Development Entities across the country. MetaFund, an Oklahoma City-based nonprofit and Community Development Financial Institution (CDFI), is providing $18 million of the NMTC allocation.
"MetaFund is honored to have taken part in financing the construction of Memorial Health of Tillman County in Frederick, Oklahoma. This project embodies what New Markets Tax Credits were built to do,” said Evan Fay, MetaFund’s NMTC Program Manager. “When the hospital closed in 2016, Tillman County families were faced with the reality of driving an hour or more for care that used to be minutes from home, and with this rebuild we are excited to see this project restore the availability of quality care in and around Frederick. We are grateful to Memorial Health of Southwest Oklahoma for their willingness to step in and serve this community and for their vision to utilize the NMTC program in closing the final gap that made this project viable.”
J.P. Morgan is contributing another $3 million of allocation to the project and investing $6.3 million in the tax credits.
"We're proud to provide $6.3 million in New Markets Tax Credit subsidy to help bring hospital care back to Frederick," said Melissa Pillars, Executive Director, New Markets Tax Credit Originations, J.P. Morgan. "At J.P. Morgan, we believe strong communities are built on access — to care, to opportunity and to quality jobs. This project brings all three back to southwest Oklahoma, giving families the ability to get the care they need close to home while driving economic growth that will benefit the region for generations to come."
The hospital’s closure created a healthcare desert in rural, southwest Oklahoma with residents having to drive up to an hour to receive hospital-level care. The new facility is expected to significantly improve health outcomes in a community that is currently classified as a Medically Underserved Area due to a shortage of providers serving low-income patients and the significant travel times for care.
“This project required municipal, county, state and federal governments to work hand in hand with private industry partners to make it all come to fruition. The Frederick hospital represents an oasis in the middle of a healthcare desert that required 8+ years of hard work and a tearing down of government silos. It proves what rural America can do when we put our minds to something. There is still more work to do to ensure rural Americans have access to high quality health care for years to come,” said Rep. Trey Caldwell (R-HD63) Chairman, House Appropriations & Budget Committee.
Memorial Health of Southwest Oklahoma, a highly regarded provider out of Lawton, agreed to develop a new hospital in Frederick on the site of the old facility.
“This investment represents a significant milestone to expand healthcare services to the residents of Tillman County and the surrounding communities,” said Brent Smith, Chief Executive Officer of Memorial Health System of Southwest Oklahoma. “We are grateful for the partnership and support from MetaFund, J.P. Morgan, and the many state and federal partners who have helped make this vision a reality. This new facility is more than a building — it is a commitment to ensuring families have access to high-quality healthcare close to home. We are honored to serve Frederick and Tillman County and look forward to building a healthier future for generations to come.”
Groundbreaking for the new facility was held in August 2024. Initial funding was provided from a variety of state and federal resources such as the Oklahoma Department of Commerce's Public-Private Partnership (P3) program, the American Rescue Plan Act (ARPA) funding to medical facilities in disproportionately impacted populations and loans from U.S. Department of Agriculture (USDA) programs.
“To be a top ten state for business, we have to be a top ten state where people want to live,” said Jon Chiappe, Oklahoma Commerce Executive Director of CORE. “The Public-Private Partnership program is an incredible tool that empowers communities to invest in themselves by supporting infrastructure projects that improve quality of life for residents while creating an environment where businesses can grow and succeed. When we invest in our communities, we strengthen Oklahoma’s economy and build a brighter future for everyone.”
The new facility will include five emergency treatment rooms, 10 inpatient beds, physical therapy services, radiology, laboratory services and electro cardiology. The facility is projected to serve approximately 8,850 patient visits annually.
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Media Contact:
Ed Long
(405) 922-7580