The state's first standalone children's hospital could be in line for over $855 million in government investment if Republicans in the North Carolina Senate get their way.
UNC Health and Duke University Health System are partnering to open the hospital somewhere in the Triangle, though the precise location has not been made public.
Senate Republican leaders are proposing to more than triple the state's initial investment, according to a budget proposal revealed Monday afternoon.
- The budget includes $638.5 million in new money for the project.
- That includes $400 million shifted from NC Innovation, a state initiative to bring academic research to market.
- The other $238.5 million come from the ARPA Temporary Savings Fund, which collects increased Medicaid savings made available to the state by a Biden-era program.
- A previous state budget included about $217 million for the project.
The hospital will be transformative "for the children of North Carolina and the region," said Sen. Phil Berger, a Republican from Rockingham County.
Plans call for 500 beds, plus children's centers for outpatient care, behavioral health and ambulatory surgeries. Both universities' medical schools will conduct research on the campus.
"This investment will save the lives of countless children for generations to come," said Wesley Burks, CEO of UNC Health and dean of the UNC School of Medicine.
Industry data indicates the facility will be one of the largest children's hospitals in the United States.
"This incredible support from the state enables our planning to continue,” said Thomas A. Owens, Duke Health's chief operating officer. “This investment ensures children with the most complex health issues have access to highly specialized pediatric services right here in North Carolina.”
When announced in January, the hospital's total cost was projected to exceed $2 billion, with UNC and Duke's health systems splitting the bill with the state.
Construction could take six years, with a groundbreaking expected in 2027.
Certificate of Need on the chopping block
The budget also exempts the planned children's hospital from the state's Certificate of Need laws. The laws tightly control when and where health providers expand.
Berger, the Senate's President pro tempore, said the hospital should be exempt from a Certificate of Need review "to ensure that any potential barriers are eliminated."
Separately, Republican senators are seeking to use the budget to eliminate the complex rules entirely. That would dramatically change healthcare in North Carolina.
Sen. Ralph Hise, a Mitchell County Republican and budget writer, called them "archaic."
The North Carolina Healthcare Association, which represents hospitals, opposes changing the program, saying it "ensures healthcare services are right-sized for their communities."
Republicans in both chambers have introduced bills this session seeking to repeal the rules, although neither has gotten a vote. Senate Bill 370 has gotten favorable reports in two committees. House Bill 455 has yet to be debated.
