UPMC to spend $900M on building projects in 2018

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University of Pittsburgh Medical Center (UPMC) plans to spend $900 million in its capital budget next year, including a new hospital in York, Pennsylvania, renovations at other facilities and paying off prior debt.

PennLive.com reports the big budget will be mostly fueled through a $750 million bond issue UPMC is seeking through the Pennsylvania Economic Development Financing Authority. Many different projects were mentioned during a required public hearing on the bond application on Aug. 17, including:

  • $235 million on a new hospital to replace York Memorial Hospital as well as upgrades in the Harrisburg and Lancaster areas.
  • An unspecified amount to be spent on a new Pittsburgh-area hospital.
  • $350 million to pay off prior debt.
  • $235 million to refinance a loan made by Pinnacle Health System for its recent purchase of four hospitals, as UPMC and Pinnacle are seeking approval to merge.

Public officials had some concerns, however, that UPMC will use its expanded reach to squeeze out competitors to its health plan, pointing out difficulties Highmark customers have faced since UPMC stopped accepting its coverage. The system is already one of the largest integrated providers in the U.S.

Read the full article at the link below: