Although the planned $1.3 billion in capital spending could help to improve the economy, the improvements are expected increase costs due to the increased use of high-tech services and costs related to excess capacity, according to the study.
The capital improvement rush includes $850 million in planned improvements to Detroit Medical Center facilities in the next five years. Vanguard Health Systems pledged to make these improvements as part of its deal to acquire the struggling health system. Henry Ford Health System also is planning a $500 expansion to its flagship hospital, according to the report.
Read the Crain’s Detroit Business report on Detroit hospitals.
Read more coverage on Detroit hospitals:
– Henry Ford Health System Plans $500M Expansion of Flagship Campus
– Following Sale to Vanguard, Detroit Medical Center to Kick Off 15 Construction Projects
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