Under private ownership of Ms. Belle Sawyer, and later Mrs. Grace Elliott, Ionia Hospital was an expense to the owners and had to be supported with charitable gifts from interested friends and neighbors.  The noble efforts of these two dedicated ladies to meet the community's needs came to an end when Mrs. Elliott announced in February of 1943 that the community hospital, on Jackson St., was to close due to the poor economics and the war. The pending closing of the only facility in the city caused concern and alarm among the residents and they approached the city government. Leading the initiative was Mayor Clarence Johnson who worked tirelessly to promote the  concept and seek support from the community.  On March 25, 1943, the first of a series of special City council meetings were held to outline a plan of action.  The community was invited and response overwhelming.

    A city wide election on April 27, 1943, asking one-mill for five years to finance the hospital, passed 1498 to 39.  An agreement was reached with Mrs. Hassie Thornton, owner of the Jackson property, to rent the building for thirty dollars a month. The name, Ionia County Memorial Hospital, was proposed by Allan Williams and accepted by the council. The hospital would be dedicated to the men and women of Ionia County in the Armed Service.  Over the next few months the city renovated and redecorated the Jackson Street facility with a $6,000 loan.  Dedication Day took place on Sunday, August 1st, at the Ionia Fairgrounds.