Intermountain Health celebrated the beginning of construction of its new Billings, Mont., Consolidated Services Center with a groundbreaking ceremony on July 29, 2025, at the site of the future facility, off Elysian Road south of Interstate 90.
This new facility will be the first large medical supply warehouse of its kind in Montana.
The overall price of the project and the main contractor's name weren't disclosed.
Once completed, the new Intermountain Consolidated Services Center will serve as a centralized hub for Intermountain Health's warehouse and supply distribution, laundry services and transportation and courier operations for the region.
The center will play a vital role in ensuring the availability and continuity of critical medical supplies, particularly in times of emergency. It is expected to handle the housing and shipping of more than 500,000 medical supply items annually to hospitals and clinics across Montana.
"For decades, hospitals in Billings, Butte, Miles City and beyond have relied on supplies shipped from out of state, over 500 miles away. In winter, that distance becomes a real barrier," said Lee Boyles, president of Intermountain St. Vincent Regional Hospital and the Montana-Wyoming market of Intermountain Health. "For the first time, critical supplies will be stored right here in Montana, with local courier teams delivering them where and when they're needed. This isn't just logistics — it's resilience and safety."
In addition to its distribution capabilities, the new center will provide laundry services to Intermountain Health facilities with the goal of improving quality and reducing costs.
The transportation network based at the center will be optimized to support caregivers across the state, covering approximately 325,000 mi. and making 25,000 stops each year to deliver medical supplies, linens, laboratory specimens, equipmentc and medications.
The economic impact of the project also is significant.
Construction of the center will employ nearly 100 individuals. Once operational, the center will create 70 jobs in Billings, including more than 30 new positions. These roles will offer competitive wages, health benefits and clear pathways for career development. Intermountain Health expects the new facility to open in late 2026.
The groundbreaking of this distribution center is one of several significant investments that Intermountain Health is making in the Billings community.
In June, Intermountain Health began construction of the new $1 billion Intermountain St. Vincent Regional Hospital replacement project. The new hospital will be a 14-floor, 737,000 sq.-ft. facility at 27th Street and 12th Avenue North just east of the current hospital building.
Construction of the new facility is expected to take four years and be completed in 2029.
