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

State of the Facilities Management Industry in 2025

Many facility managers cite budget constraints and the rise in operating concerns as their top concerns heading into the new year.


City of Hope to Open New Cancer Specialty Hospital in California

This 72-acre academic research campus offers patients access to the full continuum of advanced cancer care.


Montefiore Einstein Opening New Inpatient Center for Youth in the Bronx

New 21-bed inpatient pediatric mental health center adds critical care beds to address behavioral and mental health needs in the Bronx, nearly doubling inpatient capacity.


Skill Stacking: How Micro-Credentials Are Reshaping Trades

Micro-credentials can keep skilled trade workers up to speed with modern systems and complement longer, more formal training programs.


Prima Medicine Opens New Location in Tysons, Virginia

The Tysons location becomes Prima Medicine's fifth practice in the Washington metropolitan area.


 
 


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.