Illinois hospitals spent more than $6.6 billion in two years to build new hospitals and update old ones, according to a Chicago Tribune report.
That spending occurred from April 2009-April 2011. Developments include the new $654 million hospital at Rush University Medical Center — part of a $1 billion campaign to modify its Chicago campus. Children's Memorial Hospital replaced its 50-year-old facility with a new $855 million hospital, to which it will move this summer. University of Chicago Medical Center is also planning to open a $700 million hospital pavilion in January 2013.
In 2007, the average age of an Illinois hospital was 10.55 years — higher than the national median of 9.77 years — showing that a building spree may have been overdue, according to the report. Still, some critics have questioned whether the projects were actually necessary or just driven by competition between crosstown competitors. The billions hospitals have spent on modernization may now push some smaller, less-capitalized hospitals out of business, according to the report.
The new buildings didn't come without debt. From 2009-2011, hospitals borrowed $6.54 billion through bonds issued from the Illinois Finance Authority. As of Jan. 31, 2012, healthcare organizations had collected $12.59 billion in outstanding principal on tax-exempt bonds. This includes debt issued by hospitals and other long-term care facilities.
Some smaller suburban hospitals that spent millions on new facilities may have taken on too much debt. Elmhurst (Ill.) Memorial Hospital and Sherman Hospital in Elgin, which spent $345 million and $325 million on new facilities, respectively, posted losses in their most recent quarters.
Rush University Medical Center in Chicago Plans $46M Renovation
Edward Hospital in Illinois Proposes $63.7M Expansion Plan
That spending occurred from April 2009-April 2011. Developments include the new $654 million hospital at Rush University Medical Center — part of a $1 billion campaign to modify its Chicago campus. Children's Memorial Hospital replaced its 50-year-old facility with a new $855 million hospital, to which it will move this summer. University of Chicago Medical Center is also planning to open a $700 million hospital pavilion in January 2013.
In 2007, the average age of an Illinois hospital was 10.55 years — higher than the national median of 9.77 years — showing that a building spree may have been overdue, according to the report. Still, some critics have questioned whether the projects were actually necessary or just driven by competition between crosstown competitors. The billions hospitals have spent on modernization may now push some smaller, less-capitalized hospitals out of business, according to the report.
The new buildings didn't come without debt. From 2009-2011, hospitals borrowed $6.54 billion through bonds issued from the Illinois Finance Authority. As of Jan. 31, 2012, healthcare organizations had collected $12.59 billion in outstanding principal on tax-exempt bonds. This includes debt issued by hospitals and other long-term care facilities.
Some smaller suburban hospitals that spent millions on new facilities may have taken on too much debt. Elmhurst (Ill.) Memorial Hospital and Sherman Hospital in Elgin, which spent $345 million and $325 million on new facilities, respectively, posted losses in their most recent quarters.
Related Articles on Hospital Construction in Illinois:
Memorial Health System in Illinois Plans $60M Medical Office BuildingRush University Medical Center in Chicago Plans $46M Renovation
Edward Hospital in Illinois Proposes $63.7M Expansion Plan