Updates on some $500M+ healthcare capital projects

Given the uncertainty of the COVID-19 pandemic, Becker's sought status updates on some of the larger capital projects announced in the last year.

Several health systems have announced plans to scrap or delay these projects, while others have said their plans remain on track. 

Below is a status update on some projects and investments:

Editor's Note: This is not an exhaustive list. 

Michigan Medicine (Ann Arbor)
Project: $920 million inpatient hospital

Michigan Medicine plans to delay building  its 12-story, $920 million inpatient hospital with 264 private rooms. The health system attributed the delay to an expected financial loss of up to $230 million in the fiscal year ending June 30. It said it expects losses to continue into the next fiscal year.

UPMC (Pittsburgh)
Project: Building a network of hospitals in China  with the Wanda Group

UPMC and Wanda Group announced  plans last October to build a series of 500-bed hospitals in China. The first, expected to open in 2022, will be in Chengdu. 

UPMC told Becker's May 14 that there are no new updates on the project and they "continue to work closely with Wanda to bring the first hospital to fruition."

Valleywise Health (Phoenix)
Project: $900 million medical center in Phoenix

Valleywise Health broke ground in February on a $900 million, 10-story medical center that will replace its teaching hospital and house several ambulatory community health centers. It also includes renovation of its inpatient behavioral health facilities. 

Valleywise Health President and CEO Steve Purves told Becker's May 13 that the project is "on track for completion in late 2023, and so far, no significant delays."

Mass General Brigham, formerly Partners HealthCare (Boston) 
Project: $6.1 billion investment on capital projects in the next five years

Mass General Brigham announced during the J.P. Morgan Healthcare Conference in San Francisco in January plans to spend $6.1 billion on capital projects to expand into New England and abroad in the next five years. 

Mass General Health said May 15 that management will cut its planned capital expenditures by about 50 percent in fiscal year 2020, a reduction of about $550 million in spending. 

Kaiser Permanente (Oakland, Calif.)
Project: $900 million corporate headquarters

Kaiser Permanente had planned to move more than 7,000 employees from seven offices into a new 1.6 million-square-foot, 29-story tower in Oakland, Calif. 

Kaiser said it has scrapped plans to build the headquarters, and it will remain in its existing East Bay offices. 

Yale New Haven (Conn.) Health
Project: $838 million neurosciences center on its St. Raphael campus in New Haven

Yale New Haven Health planned to break ground this year on a 505,000-square-foot neuroscience center. 

However, the health system said it has put all capital projects on hold amid the COVID-19 pandemic. 


Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.


Featured Whitepapers

Featured Webinars