Health systems are spending again on bricks-and-mortar expansion as their financial situation stabilizes and demand for care increases.
Kaufman Hall reported during its third quarter 2023 "National Hospital Flash Report" that building expansions are becoming a strategic priority for many organizations preparing for the future. There was a slowdown in hospital construction over the last few years amid the pandemic and as leaders considered the best strategy for reaching patients with smaller ambulatory locations and virtual care. But new hospital and campus projects are back with full force.
"While deferring capital investment may have been prudent in the face of recent financial pressures, waiting too long to re-engage in a strategic financial and capital planning process could threaten the long-term relevance and viability of organizations and they fall behind the needs of their communities and actions of their companies," the report states.
So far in 2024, there have been 15 hospital projects announced topping $500 million, and eight projected to cost more than $1 billion announced or launched. Here is a quick snapshot of those projects.
1. Harris Health in Bellaire, Texas, is planning a $1.16 billion hospital project that will replace the existing LBJ hospital. The new hospital will have 390 beds and a level 1 trauma center.
2. UCSF Health in San Francisco is planning a $4.3 billion, 15-story hospital to house diagnostic services, surgical procedures and robotics. The hospital will have 682 beds and the campus will also include a research and academic building.
3. MUSC in Charlston, S.C., is asking for permission to build two hospitals as part of a $705 million project, which has already received approval from the health system's board of trustees.
4. St. Louis-based Mercy is making plans to develop a 75-bed, $650 million hospital in Wentzville, Mo. The health system filed a letter of intent with the state's health department in April and plans to glean community feedback on the project.
5. Pennsylvania-based Allegheny Health Network and Highmark Health aim to launch a $1 billion, 10-year transformation project that will include major renovations to the hospital campus. The system aims to add a patient tower that will feature a cardiovascular institute and expand the emergency and trauma services.
6. BayCare in Clearwater, Fla., is planning a $538 million nonprofit hospital in Manatee County, Fla., that will include 154 beds, orthopedics, gastroenterology and more specialty services. The hospital will also have a medical arts building.
7. Jefferson Health in Philadelphia finished a $762 million outpatient facility that includes 300 exam rooms, 58 endoscopy chairs and 10 operating rooms as part of its $1 billion urban development project. The facility began seeing patients in mid-April.
8. Detroit-based Henry Ford Health received permission to move forward with a $3 billion development deal in partnership with the Detroit Pistons and Michigan State University. The project will include a 1 million-square-foot-plus expansion to Henry Ford Hospital and a new research center through the partnership between Henry Ford Health and Michigan State University Health Sciences that houses the Nick Gilbert Neurofibromatosis Research Institute.
10. Gainesville, Fla.-based UF Health broke ground on a $1 billion expansion in February, with the first phase being a 150-bed hospital focused on neurosurgery, cardiovascular medicine, women's services and orthopedics.
11. New Hyde Park, N.Y.-based Northwell Health's North Shore University Hospital in Manhasset, N.Y., completed a $560 million surgical pavilion that includes 18 operating rooms, three hybrid rooms and 143 ICU rooms. The pavilion also has a heart hospital.
12. University of Maryland Shore Regional Health in Easton is embarking on a new $540 million hospital construction project. The 147-bed, six floor hospital will replace the current facility, which is part of the University of Maryland Medical System.
13. University Health in San Antonio broke ground on a new $450 million, five-story hospital in January as part of a $900 million project on the University Health Palo Alto hospital campus, and a second facility in Selma, Texas, shortly thereafter.
14. Hoag Health System in Newport Beach, Calif., broke ground on a $1 billion expansion project for its Sun Family Campus in Irvine, Calif., which will include six buildings and 155 new inpatient beds.
15. Inova in Falls Church, Va., unveiled plans to break ground on a $1 billion campus later this year to replace its current facility in Alexandria. The health system expects the project to be completed by the third quarter of 2028.