IOWA CITY, Iowa — One of the largest construction projects in the University of Iowa’s history — a $1.5 billion inpatient tower — has been put on hold as UI Health Care adjusts its capital plans in response to major federal funding cuts.

Although the Iowa Board of Regents had approved “enabling work” for the Jacobson Tower, UI Health Care confirmed that shifting financial realities tied to Congressional Budget Office (CBO) projections forced a re-evaluation of timelines. According to a KFF analysis of CBO data, Iowa is expected to see a $9.5 billion reduction in health care funding over the next decade, part of a nationwide $1 trillion cut.

University officials emphasized that while the institution remains in relatively stable financial condition compared to other academic health systems, adjustments are necessary to protect its mission.

“We are taking time to make decisions about our facility projects so we have in mind the best outcomes for the long-term health and well-being of Iowans, our mission of patient care, education, and research, and our employees,” said Dr. Denise Jamieson, vice president for medical affairs and dean of the Carver College of Medicine.

Impact on the Jacobson Tower Project

The Jacobson inpatient tower was slated to span 842,000 square feet, supported by a $70 million gift from the Richard O. Jacobson Foundation. It was envisioned to dramatically expand patient capacity by adding private rooms and specialized care facilities.

Originally scheduled for completion by 2030, the project also included the demolition of three nearby structures: the Wendell Johnson Speech and Hearing Center, Hospital Parking Ramp 1, and a water tower along Hawkins Drive.

While demolition of the water tower will proceed, the speech and hearing center and parking ramp demolitions are paused. The speech center’s services are still expected to relocate to the new Health Sciences Academic Building as planned.

“As more Iowans seek UI Health Care for their care, we remain committed to creating access wherever we can,” said Brad Haws, MBA, chief executive officer of the clinical enterprise. “While projects may not be on the same timeframe or scope as originally planned, we will do the best we can with the resources available to us.”

At the June Regents meeting, Haws suggested the tower’s feasibility could be reconsidered entirely. “By November, hopefully, we’ll know more about what’s happening with the federal funding … and we’ll have to sit down with this group and have a really honest conversation about the feasibility of the entire project,” he said.

Other Projects Affected

• On Hold: Realignment of the UIHC hospital entrance and skywalk.
• Moving Forward: Extension of Newton Road to the main UIHC campus (to be completed by year’s end).
• Completed: A new water tower near Carver-Hawkeye Arena, replacing the smaller Tiger-Hawk tower, which is slated for demolition this fall.

Cancer Research Facility Still a Go

Despite the delays to the inpatient tower, UI Health Care reaffirmed its commitment to building a state-of-the-art cancer research facility at the Carver College of Medicine.

“This remains a priority given Holden Comprehensive Cancer Center's pivotal role as the only National Cancer Institute-designated comprehensive cancer center in Iowa,” UI Health Care said in a statement. “UI is a leader in achieving the state’s high cancer survival rates and is a vital player in tackling Iowa’s fastest-growing rates of new cancers in the country.”

The facility is expected to enhance cancer research, improve recruitment and retention of faculty, and strengthen UI’s role as a national leader in cancer treatment.

Looking Ahead

The inpatient tower remains without a new construction timeline, leaving uncertainty about one of the university’s most ambitious expansions. However, leaders stressed that strategic prioritization of resources will ensure UI Health Care can continue to balance patient care, research, and medical education.

Originally reported by Jessica Rish in Press-Citizen.