Intermountain Health has started construction on a new distribution and logistics facility in Billings, Montana, which the nonprofit health system says will be the state’s first large-scale medical supply warehouse.

The Billings-based Intermountain Consolidated Services Center is being designed to centralize warehousing, supply distribution, laundry services, and transportation operations for Intermountain’s Montana network. Located near Elysian Road south of I-90, the facility is scheduled to open in late 2026.

According to the Salt Lake City-based organization, the center will handle more than 500,000 medical supply items annually for clinics and hospitals throughout the state. It will also serve as a base for a courier network expected to make 25,000 stops and cover 325,000 miles each year.
“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. “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 improving supply chain resilience, the facility will support Intermountain’s in-state laundry services, aimed at lowering costs and enhancing service quality.

Construction is expected to employ about 100 workers. Once operational, the center will create 70 jobs in Billings, including more than 30 new positions with benefits and opportunities for advancement, the health system said.

The warehouse project follows Intermountain’s June launch of a replacement hospital in Billings. That 14-story, 737,000-square-foot facility is under construction east of the current Intermountain St. Vincent building and is expected to be completed in 2029.

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