New community hospitals to expand in size - before they even open
University Health’s two new community hospitals scheduled to open in 2027 are already slated for expansion thanks to a projected construction budget surplus of roughly $60 million.
At its regular meeting on June 30, the Bexar County Hospital District Board of Managers authorized allocating the savings of $60.7 million plus an additional $30 million from University Health reserve funds to increase inpatient capacity and outpatient exam rooms at University Health Palo Alto Hospital on the South Side and University Health Retama Hospital on the far Northeast Side.
“After analyzing the expected patient care volumes at each hospital and taking into account continued population growth in both of these areas, moving forward with expansion now will save time and money, and ensure we provide outstanding care and service on day one and into the future,” said University Health President and CEO Edward Banos. “We are proud of our project team for carefully controlling costs while not cutting any corners to achieve the goals of these two massive construction projects. This was no easy feat in today’s economic environment.”
Currently, 79% of the $1,499,738,278 budget for both hospitals has been spent with local companies, subcontractors and tradespeople. The approved expansions will bring the total budget up to $1,529,751,606.
Opportunity meets efficiency
The expanded scope at University Health Retama Campus includes finishing out 20 additional inpatient rooms, bringing the total at opening to 167 beds. An additional eight exams will be completed in the medical office building adjacent to the new hospital. The expansion at University Health Palo Alto includes finishing out 60 additional inpatient rooms for a total of 227, with 16 more exam rooms in its medical office building. The budget includes all construction, as well as medical equipment, furniture and advanced technology.
“Doing this work now while the buildings are still under construction reduces costs and avoids disruptive work in patient care areas after the hospitals and medical office buildings open,” said Brian Freeman, University Health’s vice president of Capital Improvement Projects.
The expansions will not delay the opening of either campus. The Retama Hospital remains on schedule to open in February of 2027 and Palo Alto’s opening is scheduled for April 2027. The additional capacity will be completed at both locations in 2028.
