
Frame from "Petersburg Borough: PMC Hospital Board Meeting August 28, 2026" · Source
Petersburg hospital rejects shared-kitchen lease for traveling staff
Petersburg Medical Center has dropped plans to lease a six-unit building with a shared kitchen and common area for traveling staff. The decision came after two certified nursing assistants placed together in older hospital housing clashed over kitchen supplies, the hospital's housing coordinator told the PMC Hospital Board on Thursday.
The building had operated as an Airbnb, and the real estate agent pushed for a fast decision while the hospital sent the contract to its attorney for review. The two assistants had been housed together at Totem Arms.
"We once again found out how difficult it is for people who don't know each other but work 12-hour shifts to live together," the housing coordinator said. The dispute was over syrup. Travel assignments run 12 to 13 weeks, and staff need studio, one-bedroom or two-bedroom units of their own, she said.
Instead, the hospital's facilities director presented an early concept for staff housing duplexes on undeveloped lots at the northwest corner of 13th Street, where wastewater service was recently stubbed in. He sketched the design himself: a two-bedroom, one-bath duplex with a garage and utility room, convertible to a triplex or fourplex if unit count matters more than parking.
The site is original tundra. Building there would require excavating eight to 10 feet to reach suitable material, backfilling with clean fill, securing a federal permit with land purchased elsewhere in trade, and extending 13th Street. The rough budget runs higher than typical residential construction. The board took no action.
The hospital continues to rent 22 local units for staff and still sometimes books an Airbnb for a visiting specialist. The housing is not free. Staff report it as taxable income.
At the board's July meeting, Administrator Phil Hofstetter asked members to recognize housing as a workforce constraint and to weigh grants, a borough partnership, or buying in-town homes. Other Alaska providers have built their own housing: a 16-unit project at Providence Kodiak, and Alaska House Bill 184 advanced in February to authorize state investment in workforce housing of five or more units. The National Rural Health Association cautions that most rural providers lack the resources to become landlords.
PMC's goal remains recruiting permanent local hires who will not need company housing.
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