Allina Health delays Minnesota hospital project as inflationary pressures bite

Minneapolis-based Allina Health is delaying its new Cambridge Medical Center amid concerns over rising costs brought about by inflation and hikes in labor and supply expenses, according to a Feb. 9 County News Review report.

The planned replacement hospital about 50 miles north of Minneapolis was originally due to be completed by the spring of 2025 at a cost of $150 million, but a new target date has not been set yet, the report said.

Neither has a new budget. But it is going to be "significantly higher" than the original target, said Josh Shepherd, president of Cambridge Medical Center.

"Since we made the decision to replace our aging facility with a state-of-the-art hospital and clinic, we have faced several shifting dynamics," he said in the report. "This has included hyper-inflation pressures that are causing higher-than-expected costs to the project."

More details on an updated budget and timeline for the project are expected heading into the summer, Mr. Shepherd added.

Cambridge Medical Center is one of 13 hospitals operated by Allina Health in Minneapolis and Wisconsin.

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