News Releases

News Releases

For Immediate Release

Children's and UPMC Boards Expand Construction Project in Lawrenceville

Children's and UPMC committed to providing pediatric campus that is second to none

The boards of the University of Pittsburgh Medical Center (UPMC), Children's Hospital of Pittsburgh and Children's Hospital of Pittsburgh Foundation announced today that they have expanded the budget for the construction of the new Children's Hospital campus in Lawrenceville. This will mean an $82 million increase in the project costs, making its total budget $575 million. The $82 million includes $32 million for the pediatric research facility and $50 million for the hospital. Enhancements and additions to the plan as well as inflation in building materials account for these increases.

Board-approved additions to the new Children's Hospital include an 800-space staff parking garage, expanded faculty and administrative/clinical space, onsite day care, a fitness center and an outdoor garden. In addition, due to aggressive recruitment of pediatric researchers, two floors in the pediatric research facility that were originally planned to be shelled laboratory space now will be completed. The leadership of both Children's and UPMC believe that these enhancements, added to the original plan, will ensure that the new pediatric campus will be world-class.

In the summer of 2004, UPMC voiced concerns that the boards did not have sufficient control over the total project costs under the fast-track building process that was then being used. Since that time, Children's and UPMC officials have worked collaboratively on a design, bid and build methodology which provides a fixed price and also allowed for a careful review of the project whereby it was determined that the above listed additions were necessary in order to have state-of-the-art pediatric facilities.

Because the new facilities will enhance both new programs and recruitment, $57 million of the $250 million UPMC originally committed to new and enhanced programs and pediatric research has been reallocated to construction. Additionally, unrelated to this project, during the past fiscal year, Children's achieved $26 million savings in its capital and operating budget. This coupled with an increase in patient volume and profitability for both Children's and its parent, UPMC, makes a substantial increase in the project's cost now financially feasible.

"UPMC is pleased that we are in a position to provide the region with a world-class Children's hospital and research center that will not only advance our goal of clinical excellence, but also add pediatrics to our ever-expanding portfolio of nationally-prominent research areas," said Jeffrey Romoff, president of UPMC.

"We are extremely pleased and excited about the direction of the project," added Roger Oxendale, president and CEO of Children's. "Private, expanded patient rooms for our families, a healing garden that is like no other and a complete focus on family-centered care is what truly makes this a one-of-a-kind project. Together, with UPMC, we are committed to making sure that the children, families and communities we serve have the best pediatric care possible."

This project is currently out for bid and bids are expected in mid-November. 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.

Contacts:
Dean Walters, Children's Hospital of Pittsburgh, 412-692-5017
Jane Duffield, University of Pittsburgh Medical Center, 412-647-3555

Last Update
February 18, 2008
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Last Update
February 18, 2008
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