The University of Iowa Health Care system is revising its capital improvement plans after federal funding changes are expected to reduce health care spending in Iowa by $9.5 billion over the next decade.
The Congressional Budget Office estimates the federal changes will cut more than $1 trillion from health care funding nationally over 10 years. While UI Health Care officials say they are in better financial shape than many academic medical centers, the system must delay or scale back facility modernization projects.
“We are taking time to make decisions about our facility projects so we have in mind the best outcomes for the long-term health and well-being of Iowans, our mission of patient care, education, and research, and our employees,” said Dr. Denise Jamieson, university vice president for medical affairs and dean of the Carver College of Medicine. “As we look at decisions, we are going to focus on what’s right for Iowa, balancing the highest priorities with the anticipated reduction in available resources.”
Working with university officials and the Iowa Board of Regents, UI Health Care has made initial adjustments to its construction timeline.
Jacobson tower proceeds on new schedule
The health system’s largest project, a new hospital tower funded partly by the Richard O. Jacobson Foundation, will continue but on a delayed timeline. The tower is designed to increase capacity for complex care with more private patient rooms near the main medical center campus.
Several enabling projects continue as planned, including a new road connecting Newton Road to the main campus entrance, expected to finish by year’s end. A replacement water tower has been built, with removal of the old tower scheduled for spring.
The Hawkeye Parking Ramp north of Kinnick Stadium opened in March, and the Health Sciences Academic Building recently opened to house the Department of Communication Sciences and Disorders.
However, other projects face delays. Hospital Parking Ramp 1 will remain open longer than planned, the Wendell Johnson Speech and Hearing Center will not be demolished as scheduled, and planned hospital entrance and skywalk changes are on hold.
“As more Iowans seek UI Health Care for their care, we remain committed to creating access wherever we can,” Brad Haws, chief executive officer of the clinical enterprise, said in a statement. “We know that UI Health Care is not able to care for every patient who needs our services. That’s why we continue to make advancements to add inpatient rooms through the Jacobson tower and modernization of our aging facilities. While projects may not be on the same timeframe or scope as originally planned, we will do the best we can with the resources available to us.”
Cancer research remains priority
UI Health Care plans to proceed with expanding cancer research facilities. The Holden Comprehensive Cancer Center is Iowa’s only National Cancer Institute-designated comprehensive cancer center and plays a key role in the state’s cancer survival rates.
Iowa has among the fastest-growing rates of new cancer cases in the country, making the research expansion a continued priority despite budget constraints.
The health system is also reviewing modernization plans for both its university and downtown medical campuses, with updates planned as decisions are finalized.
