Inflation Causes Chicago Hospital Construction to Increase $182 Million

The rise of inflation and redesign of the proposed hospital has increased the price.

By Mackenna Moralez, Associate Editor


Plans for University of Chicago Medicine’s new cancer hospital seemingly changed overnight due to the rise of inflation and design changes, the Chicago Tribune reports.  

When the project was first announced last year, the new hospital was supposed to have 128 beds, coming in at a cost of $633 million. However, the rise of goods have forced prices up 29 percent of $815 million – a $182 million increase – with just 80 beds.  

In an application filed by University of Chicago Medicine to the Illinois Health Facilities and services Review Board states that the steep increase in cost is due to “hyperinflation,” while the reduction of beds “was a direct response to managing the escalated cost of the overall project.” 

Redesigns were also contributed to the opinions received from the Hyde Park community, which was gathered by telephone poll, surveys, town halls and other meetings, the Tribune reports.  

Despite the rise in costs, the facility will be larger than originally planned, coming in at 575,000 square feet and seven floors. According to the Chicago Tribune, 161,000 square feet will remain empty for future needs.  

If the hospital’s application is approved by the state board, construction could start later this year, with the facility projecting to open in 2027.  

Mackenna Moralez is the associate editor for the facilities market.  



February 21, 2023


Topic Area: Construction


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