University of Iowa Health Care, medical college eyeing $32 million in upgrades

IOWA CITY — University of Iowa Health Care and its medical college next week will seek Board of Regents approval for more than $32 million in upgrades — including $12.2 million to bring the radiology and imaging department at its downtown campus.

“This is phase one of a multiphase effort to update the radiology space and equipment at the downtown campus to improve throughput, access and quality of care provided,” according to a board request to renovate the UIHC Medical Center Downtown — which had been Mercy Iowa City for 150 years before the UI acquired it in a 2024 bankruptcy auction in for nearly $40 million.

“The CT (computed tomography) and nuclear medicine equipment at the UI Health Care Medical Center Downtown is at the end of its lifespan and needs to be replaced,” the request states.

In addition to replacing two CT and two nuclear medicine machines, the project — to be fully funded by UIHC earnings — aims to move the main corridors and patient waiting areas “to accommodate better patient flow and create room for two additional CT units.”

By renovating the nuclear medicine area, the campus will have enough space for a new cardiac camera and “Spect CT.”

The work, if approved by the regents, would add to the many millions UIHC is spending to update and upgrade the downtown campus, including modernizing its operating rooms and medical equipment, reopening a 26-bed inpatient unit last year, repairing and upgrading the roof and service elevators, and expanding parking.

Construction on the radiology space, if approved, would begin this spring and continue through 2028.

Sleep labs

Across the Iowa River, on the main UI medical campus, officials are asking to combine two sleep labs into a new central sleep clinic to be constructed in shell space at the UIHC Heartland Drive clinic in Coralville on Heartland Drive.

Funded with UIHC earnings, the nearly $5 million project would join sleep lab functions now housed in the Center for Disabilities and Development on the UIHC campus and at the Medical Center Downtown.

“This project would combine the two sleep lab locations into one location to improve ease of patient care and staff workflow optimization,” according to the board request, flagging plans to raze the Center for Disabilities and Development next year to make room for a new inpatient tower.

“The project would include 10 sleep lab testing rooms, reception/waiting areas, controls space, support spaces (clean, soiled, storage) and staff support spaces.”

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Bowen Science renovation

A proposed $11 million Carver College of Medicine project aims to renovate 19,000 square feet in the Bowen Science Building to include “faculty offices, laboratory support rooms and shared equipment zones to improve efficiency and maximize utilization of the space.”

“The renovation would be designed to support wet bench research, departmental administrative functions, and a potential classroom,” according to board documents. “It would also include modest upgrades to approximately 2,500 square feet of corridor and lobby space, including lighting and acoustic treatments.”

Construction, following board approval, will run from this spring to fall 2027.

The remaining $4 million being requested would be to update the HVAC system at the John and Mary Pappajohn Biomedical Discovery Building.

Headwinds

The projects come as UIHC — like other hospitals — are navigating national health care headwinds, including the One Big, Beautiful Bill Act’s restriction of Medicaid state-directed payments.

That revenue has been a big boost to the UIHC budget in recent years — adding, for example, $210 million in revenue through December of the current 2026 budget year. That has UIHC revenue nearly $16 million over budget to date — although not on pace with expenses, which are $37 million over budget.

With the directed payment revenue, UIHC’s operating income is $91.1 million — about $21.2 million under budget. Without the directed payment revenue, the UI Health Care operation would have a $119.1 million deficit.

Given those changes, administrators in November said they’re reviewing plans for a new $2 billion inpatient tower slated for the main UIHC campus adjacent to Kinnick Stadium.

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com