University of Iowa Health Care is seeking a 33 percent budget increase for a hospital construction project, attributing the request to rising inflation and a workforce shortage, The Gazette reported July 19.
Previously, the expected cost was $395 million for a new hospital, as well as additional academic, research and clinical space on a 60-acre campus in North Liberty, Iowa. The project is now expected to cost $525.6 million. The Iowa Board of Regents approved the project in 2021 and construction is underway.
Global supply chain challenges have impacted the world's aluminum supply and driven prices to record highs, University of Iowa Health Care officials said, according to the report. The cost of glass has risen 35 to 40 percent over the past two weeks. Contractors are facing challenges finding skilled workers, such as electricians.
The additional cost will be funded through the Iowa City, Iowa-based health system's patient revenue and gifts, rather than the hospital's general operating budget, according to the report.
The regents will vote on whether to approve the revised budget July 27. The North Liberty campus is expected to open in June 2025.