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

Healthcare Is the New Retail

How site selection strategies are shaping the future of medical real estate.


Bridgeway Behavioral Health Services Launches Campaign to Renovate Health Center

The $2 million capital campaign aims to renovate and expand the outpatient behavioral health center in Elizabeth, New Jersey.


Ground Broken for New North Dakota State Hospital

The 300,000-square-foot facility in Jamestown will provide 140 beds in a modern, trauma-informed care environment.


AI Usage for Healthcare Facilities

People in all industries are finding more use cases for artificial intelligence.


Ground Broken on Pelican Valley Senior Living Modernization Project

It is expected to reach completion in early-mid 2027.


 
 


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.

 
 
 
 

Healthcare Facilities Today membership includes free email newsletters from our facility-industry brands.

Facebook   Twitter   LinkedIn   Posts

Copyright © 2023 TradePress. All rights reserved.