Tartu University Hospital scales back construction plans amid funding shortage
Tartu University Hospital has reduced the scope of the next construction phase at the Maarjamõisa medical campus due to a lack of funds. The new building S is still planned, but demolition of building F, which houses cardiology departments, has been postponed for now.
Tartu University Hospital has cut back the scope of the next construction phase at its Maarjamõisa medical campus because of insufficient funding, Estonian broadcaster ETV+ reported on its news program "Aktuaalne Kaamera" on Friday.
The hospital still intends to build the new building S, but demolition of building F, which currently houses the cardiology clinic's departments, will be put off for the time being.
Costs outpacing revenue
According to Indrek Esnault...
According to the hospital's chief financial officer Indrek Esnault — more precisely, Indrek Essonson — expenses are growing faster than revenue, leaving the hospital with less capacity to invest in construction.
Revenue has also been affected by the Health Insurance Fund's decision to cut reimbursement rates for laboratory services by 15% this year.
Construction costs and timeline
The estimated cost of the construction works is around 51 million euros, excluding value-added tax. Additional funds will be needed to purchase medical equipment.
The construction is planned to be financed through the hospital's own funds and a loan. The new building is expected to be completed by 2031.
