An expanded project scope—and price tag—for the future primary teaching hospital for the University of Nebraska Medical Center (UNMC) and Nebraska Medicine received a key panel approval Friday.
The University of Nebraska Board of Regents approved a revised program statement that expands the project—dubbed Project Health—to a 1.5 million square-foot facility, up from the originally planned 1.25 million square-foot size. The additional space aims to accommodate higher patient volumes, anticipated growth and allow for the retirement of aging facilities.
The new scope reflects an expected investment of $2.75 billion, an approximately $500 million increase from the initial estimate.
“This investment is certainly significant. But so too is Project Health itself,” said Jeffrey Gold, M.D., NU System president, in a statement. “This project is a once-in-a-multigeneration opportunity to expand access to world-class medical care, modernize how we educate and train the next generation of healthcare professionals, and create a clinical economic development platform capable of serving Nebraska long into the future.”
Nebraska Medicine CEO Michael Ash, M.D., said in a statement the organization is “grateful for the ongoing support” from the board in the project.
“This transformational project will redefine how we care for patients, expand access to lifesaving services, and create new opportunities for innovation, education, and discovery,” Ash said. “Most importantly, it will enhance our ability to improve the health and well-being of Nebraskans for generations to come.”
In January, the board unanimously approved a proposed deal to bring jointly operated Nebraska Medicine under UNMC’s full ownership and governance.
The $800 million deal would see co-owner Clarkson Regional Health Services offload its 50% share of the independently run system for $500 million plus another $300 million for owned land and buildings. Nebraska Medicine’s board was in opposition of the deal—launching a public messaging campaign against it.
Still, the UNMC board unanimously approved a resolution establishing a new governance structure for Nebraska Medicine in September. Under the structure, the Omaha Community Foundation is a shared governing member alongside the University of Nebraska system.