News Releases

News Releases

For Immediate Release

Children's and UPMC Settle Dispute Over New Building Project in Lawrenceville

Members of Children's Hospital of Pittsburgh Foundation and UPMC boards announced today that the dispute over construction and management of the new Children's Hospital campus has been settled.

There are three major outcomes that resulted from the boards' resolution:

1. The budget is set at $473 million for the design and construction of the entire hospital-research complex in Lawrenceville. Children's Hospital of Pittsburgh Foundation has committed to raise $50 million in support of the new Children's Hospital. UPMC has guaranteed to be responsible to make up any shortfall if the Foundation is unable to raise additional funds.

2. Children's core philosophy of family-centered care will be preserved. This encompasses Children's plans for private patient rooms and care for all children -- including pediatric oncology patients and adolescent care, which will remain at Children's and will not be diverted to adult community hospitals.

3. The construction process will change from "fast track" status to a "design-bid-build" process, which calls for more stringent project and budget management that will require additional time to complete the project, now estimated for June 2008.

"We are pleased that the issues with UPMC have been settled and that specific commitments were made to avoid further distraction and lost time for the project," said Ronald L. Violi, Children's president and CEO. "A lot of time and effort has been put into this project to ensure it will provide the children, families and communities of Pittsburgh and this region a world-class pediatric facility second to none. Looking ahead, I know that the children we serve will continue to have the best resources in the country."

The cost for the project includes demolition/renovation of two existing office buildings, as well as the construction of the hospital, research center, a power plant and parking garages and does not include costs associated with delay.

"UPMC is pleased with the agreement and looks forward to building a new Children's Hospital and enhancing the care of all children in the community," said Jane Duffield, UPMC spokeswoman.

Children's has been caring for children and providing services to pediatric patients for more than a century. Children's continues to be committed to its mission of patient care, teaching and research and the ability to ensure open access to pediatric care for all children in western Pennsylvania regardless of insurance or ability to pay.

Dean Walters, Children's Hospital of Pittsburgh, 412-692-5016

Last Update
February 19, 2008
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Last Update
February 19, 2008