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


Recent Posts

Making the Energy Efficiency Case to the C-Suite

Hospital executives often wrestle with energy decisions made today that either free up budget for patient care or drain resources that could go elsewhere.


How to Avoid HAIs This Flu Season

There are risks surrounding hospitalizations. Here’s how to avoid them.


Design Phase Set to Begin for Hospital Annex at SUNY Upstate Medical

The design will feature a new, expanded emergency department and burn unit to serve the Central New York Region.


Building Hospital Resilience in an Era of Extreme Weather

Expert Jennifer Mahan discusses the vulnerabilities healthcare facilities face during disasters and the infrastructure strategies that keep operations running.


Ennoble Care Falls Victim to Data Breach

Their investigation into the incident is still ongoing.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.