Iowa City-based University of Iowa Health Care has scrapped its more than $2 billion inpatient tower project, opting instead to modernize and expand the health system’s existing footprint.
The academic health system detailed the shift in a Sept. 9 statement on its website, ahead of an Iowa Board of Regents meeting later this month where a revised capital plan will be reviewed. UI Health Care said it remains in a stable financial position but is adjusting capital plans amid rising costs, workforce shortages and reimbursement pressures facing health systems nationally.
“This is the fastest and most financially responsible way to achieve healthcare access for Iowans given the anticipated financial challenges,” the health system said. “The revised approach does not allow UI Health Care to achieve everything planned in the tower, such as new operating rooms and other infrastructure needs, but it addresses important needs more quickly.”
UI Health Care reported more than 41,000 inpatient admissions, 43,000 major surgeries and nearly 1.7 million clinic visits last fiscal year. However, the health system is still turning away 3,000 to 5,000 patient transfers annually due to space constraints.
The expansion and modernization project is expected to add about 100 patient beds and serve roughly 23,000 more patients sooner than the tower would have. Brad Haws, CEO of the clinical enterprise, said the change lets the system “improve access in the pockets where it is needed most, such as intensive care units.”
The system is also focused on expanding specialty and cancer care access, increasing telehealth use and strengthening the rural healthcare workforce.
“Our mission remains the same: improving the health and well-being of the people of Iowa,” said Denise Jamieson, MD, UI vice president for medical affairs and dean of the Carver College of Medicine. “The question before us was never whether we would continue investing in access. It was how to do so in a way that is sustainable, responsible, and for the greatest benefit to Iowans.”
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