Laboratory stockholders voted to buy the Reynold's property located on the Southwest corner of Navarre and Main Streets. It would be known as "The Clinic of Pathology and Bacteriology." At the time, the laboratory had contracts with both South Bend hospitals, Mishawaka Hospital, Elkhart General Hospital and did a lot of outside work throughout the St. Joseph Valley, as well as from Chicago to Pennsylvania. Dr. R.L. Sensenich served as President at the time. Each hospital had a laboratory with a technician. In order for the move to take place, South Bend Medical Laboratory had to amend current zoning laws to begin the new addition which would be known as 531 North Main Street. The addition would be 23x26 feet to the rear at a cost of $5,000 and new equipment.
The Medical Laboratory was reaching clients within about 100 miles and simple blood counts cost patients about $1 while Chicago Laboratories charged about $5 for the same test. In January, the expansion was completed and the staff consisted of 18 employees, 15 women, two men and a supervisor. The new expansion now allowed the laboratory to house four departments including a prep room, where instruments were sanitized, Pathology, Bacteriology and Chemistry.
Expanding once again, the laboratory administrations brought forth a plan to tear down the original building, keeping one floor and erecting a two-story building. The cost of the proposed construction amounted to $30,000.