University of Michigan Health-Sparrow will invest more than $140 million to build a new behavioral health hospital and an ambulatory surgery center (ASC).
The builds will be in Lansing, Michigan, with the health system looking to expand access to care and ease capacity constraints in the area.
The University of Michigan Board of Regents approved the two projects Thursday. Groundbreaking is expected this summer, with both facilities slated to open in 2028.
The $83 million behavioral health hospital will include 64 inpatient beds serving adult, geriatric and pediatric patients. The region faces a shortage of psychiatric services, particularly for children and adolescents, with many patients transferred more than an hour away for inpatient care, officials said in an announcement.
“We are grateful for the regents’ approval,” Margaret Dimond, regional president of U-M Health, said in a statement. “Our communities deserve the level of care that is associated with U-M Health, and both of these projects address unmet needs, including the scarcity of behavioral health services in the region.”
The expansion also includes a $60 million ASC located near the system’s Lansing hospital. The outpatient facility will open with four operating rooms and has capacity to expand to six.
Hospital leaders said the main Lansing campus, which operates 22 operating rooms, is nearing capacity as surgical volumes rise. The new ASC is expected to shift certain procedures out of the hospital setting, creating additional inpatient capacity and offering a lower-cost site of care.
Cardiac patients in the area will benefit from a new MRI planned for the facility, which should reduce wait times, according to the announcement.
“The approval by the regents allows us to better respond to the needs of our community and patients and allows room for growth,” Ann Marie Creed, president of UM Health-Sparrow Lansing, said.
The investments reflect a broader push by health systems to modernize aging infrastructure and expand outpatient services as demand for behavioral health and surgical care continues to grow.
