The proposal to modernize the Public Health Service Indian Hospital in Talihina, Oklahoma includes major functional rearrangements, expansion of departments, and the addition of 100 GM&S beds. The project will be completed in three phases to avoid increased costs and construction issues. The estimated cost has increased to $1,502,000, and it is recommended to award one construction contract for all phases. The hospital serves as a primary health resource for the Choctaw and other tribes in the area, and the proposed modernization aims to improve the efficiency and quality of healthcare services provided.