The association announced plans to enlarge the hospital to 100 beds and acquire additional equipment. A "Give As You Live" campaign was begun to raise $450,000. H. O. Bell, the campaign chairman, said: "The undertaking is progressing on schedule and there is no question as to whether we shall reach the goal of $450,000 . . ." But substantial questions arose between 1947 and 1951. Only $260,000 was raised, although more had been pledged. More importantly, enthusiasm for an enlarged facility was dampened when St. Patrick Hospital announced a drive to build a 200-bed unit in Missoula.
The blueprints for the enlarged Memorial Hospital already had been completed by the architects, Fox and Ballas, but construction was postponed because of the St. Patrick's announcement. At a joint meeting of officers of both hospitals, the Memorial staff agreed to St. Patrick's request to support its fund drive and to discontinue the one for the enlarged Memorial Hospital.
The new St. Patrick Hospital, completed in 1952, fulfilled Western Montana's medical needs. Consequently, Memorial Hospital's future appeared bleak. The fund drive had ended, and doctors were advising their patients to enter the modern St. Patrick. Uncollected bills began to mount - by 1956 uncollected accounts totaled $103,000 and unpaid bills $33,000.
The president of the Board of Trustees, Herbert Jensen, announced that the hospital might close because of increased costs, declining revenues and lack of public and professional patronage. A few days later, local doctors met to oppose closing the hospital and resolved to support it more fully. But it was still in trouble. At a Rotary Club meeting, Jensen said a hospital with only 48 beds could not operate efficiently and could do little more than break even.

