Children's Hospital of Philadelphia is taking on additional debt to pay for a new patient tower and research building, according to The Philadelphia Inquirer.
Five things to know:
1. The health system aims to borrow $750 million to pay for the two projects: a $2.59 billion patient tower with 200 private rooms and ability to add 300 more, and $480 million for the research facility currently under construction.
2. When CHOP conceived of the patient tower four years ago, the estimated costs were $1.9 billion. However, since then operating costs have ballooned.
3. CHOP had hoped to fund the facility with profits, reserves and philanthropy, but the system's financial situation changed in the last four years. Its operating profit averaged 2.2% over the last two years, well below the 7.4% average for the three years before the pandemic.
4. CHOP aims to open the new tower in 2028.
5. The research tower will include 17 stories and 120 research bays, according to the report.