Michigan Medicine to resume construction on $920M hospital after pandemic-related pause

Michigan Medicine plans to resume construction of a $920 million hospital after hitting the pause button on the project amid the financial turmoil caused by the COVID-19 pandemic.

The Ann Arbor, Michigan-based health system announced the planning team resumed its design work and plans to start construction in the coming months. They did not yet specify details on timing but said the new hospital is estimated to open for patient care in the fall of 2025.

"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," officials said in a statement. "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."

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The 12-story hospital will have 264 private rooms capable of being converted into intensive care rooms. Plans also call for co-locating a neurological and neurosurgical center and offering high-level, specialty care services for cardiovascular and thoracic patients along with advanced imaging.

The 690,000-square-foot hospital will provide more access to care for adult patients at Michigan Medicine, where current hospital facilities often operate at more than 90% capacity, officials have said.

The creation of the new inpatient hospital will allow the relocation of 110 beds in semiprivate rooms at the existing University Hospital, making all inpatient beds at Michigan Medicine single private rooms.