Michigan Medicine delays construction of $920M hospital

Citing a financial loss from the COVID-19 pandemic, Ann Arbor-based Michigan Medicine plans to delay the construction of its $920 million inpatient hospital.

Michigan Medicine announced plans to build a new 12-story inpatient facility with 264 private rooms last September. 

The health system said it is delaying the project because it expects to record a financial loss of up to $230 million in the fiscal year ending June 30. The health system also expects losses to continue into the next fiscal year. 

It is unclear when construction on the facility would restart. 

"While we are faced with continuing challenges as a result of this pandemic, we know that our collective effort will result in our successfully navigating this crisis and moving forward on a path of strength and sustainability," said Marschall Runge, MD, PhD, CEO of Michigan Medicine.

Michigan Medicine also announced plans to furlough or lay off 1,400 employees to help offset the anticipated loss.

More articles on facilities management:
Shuttered 157-bed San Francisco hospital may reopen
Massachusetts plans to convert long-term care hospitals into COVID-19 facilities
The race to boost hospital bed capacity: Updates from 5 states

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