Hunter
08/31/22
The Iowa State Health Facilities Council gave approval Tuesday to provide additional funding for University of Iowa Health Care’s new hospital in North Liberty.
The Council approved the $230 million project last August, and voted 3-1 Tuesday to up the budget to $307.1 million.
University of Iowa Health Care officials say inflation has driven the full cost of the project, which includes academic, research and clinic buildings, to over $525 million. That figure was approved by the State Board of Regents last month.
State Health Facilities Council Chairman Harold Miller was the lone dissenter in approving the budget hike. He criticized the University for failing to anticipate and build-in funding to cover inflation as part of the project, despite construction costs rising between the first proposal in February 2021 and August 2021.
UI Hospitals and Clinics Interim CEO Kim Hunter said any additional inflation costs will be absorbed by the construction manager. The agreement with JE Dunn sets a guaranteed maximum price for the project, with any further inflation or price increases covered by the company. Hunter said that they hope the actual cost comes in below the new figure.