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$840M Contract Awarded for KY Hospital Project

Friday, August 20, 2021

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Officials with Louisville, Kentucky’s new Department of Veterans Affairs hospital recently confirmed that an $840 million contract has been awarded to Walsh-Turner Joint Venture II to build a new medical center.

The U.S. Army Corps of Engineers Louisville District will reportedly work with the Department of Veterans Affairs on the project that is slated to replace the Robley Rex VA Medical Center.

The new center is slated to include more than 900,000 square feet of space with 104 beds and other additions to the property, including sidewalks, roads, two parking garages and a more than 40,000-square-foot utility plant.

While the initial contract goes to the joint venture of Chicago-based Walsh Construction Co. and Columbus' Turner Construction Co., officials noted that about $95 million in subcontracts have yet to be awarded.

Robley Rex VA Medical Center, Public Domain, via Flickr

Officials with Louisville, Kentucky’s new Department of Veterans Affairs hospital recently confirmed that an $840 million contract has been awarded to Walsh-Turner Joint Venture II to build a new medical center.

Groundbreaking could reportedly be as early as this fall, with construction expected to be complete in 2025.

Recent Hospital Projects

While many hospital projects were put on hold at the beginning of the COVID-19 pandemic, others have recently been announced. Most notably, in May, the St. Jude Children’s Research Hospital announced plans for a $1.9 billion overhaul of its Memphis, Tennessee location. The project involves various renovations, new construction and capital investments.

The project is part of an even larger $11.5 billion expansion, which will span over six years and involves new research into treatments of catastrophic childhood diseases.

Reported to be the hospital’s largest strategic expansion in its nearly 60-year history, St. Jude’s Board of Governors adopted the six-year plan in March. The full expansion is expected to be paid for by donors and requires no debt, although, the responsibility ultimately falls on the American Lebanese Syrian Associated Charities (ALSAC).

Serving as the fundraising and awareness organization for St. Jude, the ALSAC works with millions of donors to raise the money to make the mission possible. Private fundraising conducted by ALSAC is the organization’s lifeline because pediatric cancer research typically receives a disproportionately low share of government research dollars.

In partnering with more than 11 million active donors, it is projected that 87% of funds for the project will come from public donations and investment income. Last year, the average donation was approximately $43.

In breaking down the $1.9 billion budget that will stretch from 2022-27, $1.4 billion will be put into “strategic initiatives” while $558 million in capital investments will be put into current facilities on the Memphis campus.

The largest project in the plan is the construction of a new $500 million outpatient clinic and attached doctors’ office buildings. Additionally, two new parking garages will be constructed, and existing cafeteria facilities plan to be expanded.

Another large part of the plan involves the construction of Domino’s Village, which is a $100 million housing complex specifically for St. Jude patients and families. The village is already under construction and includes 140 units, a mixture of long- and short-term residencies, an underground parking garage and exterior courtyard and play area.

Domino’s Village also has a pedestrian bridge which connects the housing complex to the St. Jude campus.

The village is expected to officially open in spring 2023.

Slated to open later this year, construction crews are finishing up a $412 million research tower on the campus as well. Doubling the hospital’s existing research space, the 625,000-square-foot facility stands seven stories tall and includes a glass-walled laboratory space, penthouse and basement. The building is also outfitted with special air-handling and sterility equipment.

Apart from construction, other plan highlights include:

  • A $3.7 billion investment to expand cancer-focused research and related clinical care;
  • More than triple St. Jude’s global investment to improve survival rates around the world; and
  • More than $1 billion invested to expand research in nonmalignant diseases.

“We are making our biggest (financial) commitment ever—during a pandemic—because our donors have demonstrated their commitment to us,” said Richard C. Shadyac, Jr., CEO of ALSAC. “It’s an incredible display of loyalty and purpose, and the power of people coming together to help the most vulnerable in our society: sick children.”

As a result of the expansion, St. Jude plans to add 1,400 employees, with 70 of them being faculty positions. The hospital also plans to hire a new vice president to direct capital planning and facilities management within the first six months of the 2022 project launch.


Tagged categories: Contract awards; Contracts; Government; Government contracts; Health Care/Hospitals; Maintenance + Renovation; NA; North America; U.S. Army Corps of Engineers

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