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Michigan Medicine to resume construction on $920 million hospital


Michigan Medicine in Ann Arbor was forced to delay construction of a new hospital last year due to the COVID-19 pandemic, but with cases down and vaccines being distributed, the academic health system is resuming plans to build the $920 million facility.

The planning team has resumed its design work, officials said in a FAQ posted to the system’s website this week. Work will begin in the coming months and is expected to be completed in time for a fall 2025 opening.

The new hospital will include 264 private rooms, and 110 additional private rooms will be created in University Hospital by reducing semi-private rooms. This is to improve patient safety while allowing more space for families to be in each room.


The system expects that the new hospital will allow for growth in operating room, procedure room and inpatient-bed capacity, as well as intensive care capacity as needed. The equipment will be updated, and imaging and procedure labs will be located closer to surgical and treatment areas, with the hope that this proximity will enable better collaboration between disciplines.

Officials said the timing was finally right.

“As we increase vaccinations and can envision the end of the pandemic and its economic effects, we believe it is the right time to restart this project that was paused nearly a year ago,” the system said.

“Leadership has considered a number of factors in its decision to move forward on the new hospital, including our current improved financial performance and the need to advance long-term strategic priorities that will increase capacity and ensure access for the sickest patients.”

Michigan Medicine said the new facility is necessary to serve a growing number of high-acuity patients and to improve clinical practice.


A number of hospital construction projects are either planned or underway across the country. Ohio State University, for example, is planning on a 1.9 million-square-foot, $1.79 billion hospital that’s expected to enhance leading-edge research, clinical training and patient care as part of OSU’s long-term Framework 2.0 planning. Framework 2.0 is a vision that outlines development planning across the campus to advance healthcare, research and the arts.

Children’s Hospital of Atlanta, meanwhile, expects that a new $1.5 billion hospital named after Atlanta Falcons owner Arthur M. Blank will be open in 2025 and will include one tower with two wings, additional operating rooms, specialty beds and diagnostic equipment to meet anticipated patient needs. There also will be space for clinical research, clinical trials and overall patient care.

New York City could be a hotbed of new healthcare construction activity. According to a 2020 report, between 2020 and 2023 the New York Building Congress anticipates total spending on construction for the healthcare sector to increase by 38{f08ff3a0ad7db12f5b424ba38f473ff67b97b420df338baa81683bbacd458fca}, to exceed $9.4 billion during that period.

From 2016 to 2019, New York City spent more than $6.8 billion on healthcare construction. For the next three years, every borough except Staten Island is expected to have an increase in spending.

Twitter: @JELagasse
Email the writer: [email protected]


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