So the old morton house was destroyed by fire and they built this i guess?
Oral history tells us that the Doctor's where tired with the administration of the Hotel part of the business, and that they wanted to focus on the medical practice. Of course it is impossible to say now, but at this time Dr. Ward Ferguson, Dr Lynn Ferguson and Dr. James Droste left the Sanitarium to start their own hospital aptly named Ferguson-Droste-Ferguson, in Grand Rapids.
The Sanitarium took the entire 12th floor of the Morton House hotel, and while the brochure pictures a giant sign outside the hotel. The only sign that where is physical evidence for is this one: