Rockledge, Fla.-based Health First is scaling back plans to build a $508 million project on Merritt Island, clickorlando.com reported April 11.
Health First officials cited inflation and the increased costs for labor and construction as a reason for scaling back the project, according to the report. The health system said it will proceed with the hospital development, but will no longer build what it called a "wellness village."
Originally slated to open in 2025, the seven-story, 120-bed hospital will replace the current 150-bed Cape Canaveral Hospital in Cocoa Beach, Fla. Health First now aims to break ground on the hospital next year.
When pitching the wellness village amenities to commissioners in July, Matthew Gerrell, CEO of retail services,
"We’re going to continue to provide 'healing well' services such as hospitals, ambulatory surgery center, medical office buildings," Mr. Gerrell said. "But we're going to add in 'living well' services such as retail, healthy food options and child care."
Health First is also halting plans to build wellness villages near its hospitals in Melbourne and Palm Bay, Fla., according to the report.
Health First reported an operating loss of $74.69 million for the year ended Sept. 30, 2022, down from an operating gain of $74.46 million in 2021. An 11.4 percent year-over-year increase in its expenses to more than $2 billion and losses on investments totaling $157.5 million left the health system with a $232.5 million net loss for the year ended Sept. 30, compared with a net gain of $189.3 million for the same period the prior year.
A $60 million administrative services deal between Oscar Health and Health First Health Plans was also canceled in January, just one year after it began.