Hunter
09/10/26
Citing changes in federal funding, University of Iowa Health Care has announced it’s pausing plans to build a new $2 billion-plus inpatient tower and will use earmarked funds to modernize and expand existing spaces across its footprint.
The Gazette reports the change comes after the hospital system already has spent more than $200 million on early tower work — for things like planning, design and feasibility studies. The university has also completed construction to make room for the new tower, including a new $17.5 million road, $75 million parking ramp, water tower, and the new $250 million Health Sciences Academic Building.
UIHC CEO and associate vice president Bradley Haws told regents last fall that there needed to be a conversation about the feasibility of the new tower and whether it still fits in with capital plans and affordability. Those concerns came as federal health care-related funding cuts were expected to strip $10 billion from the State of Iowa over the next ten years.
He said Wednesday that when they created their facilities master plan five years ago, the health care environment looked much different.
Officials say by focusing on renovations instead of new construction, improvements can be completed years sooner, which will benefit patients in the shorter term.