The Daily Dig
The University of Michigan Board of Regents has approved two healthcare projects at UM Health-Sparrow in Lansing: an $83 million behavioral health hospital and a $60 million ambulatory surgery center. Groundbreakings are scheduled for this summer, and both facilities are expected to open in 2028. The combined investment totals $143 million.
The 64-bed behavioral hospital will be built on vacant Sparrow-owned property behind the Lansing hospital, near Pennsylvania Avenue and Jerome Street. It will serve adult, geriatric, and child/adolescent patients, including 16 new pediatric beds in a region that currently transfers many youth cases out of the area. The $60 million ambulatory surgery center, located west of the hospital near Michigan and Pennsylvania avenues, will open with four operating rooms and room to expand, shifting procedures away from the aging St. Lawrence campus and relieving pressure on hospital ORs that are nearing capacity.
Project Snapshot:
Agency / Body: University of Michigan Board of Regents
Healthcare System: UM Health-Sparrow (University of Michigan Health)
Total Investment: $143 million
Behavioral Hospital: $83 million; 64 beds
Child/Adolescent Capacity: 16 beds
Ambulatory Surgery Center: $60 million; 4 operating rooms at opening
Location: Lansing, Michigan
Schedule: Groundbreaking this summer; planned opening 2028
TheJobWalk Thoughts
Board approval and a defined delivery year make this real pipeline, not a concept. The behavioral hospital brings specialized life-safety, security, and patient environment requirements that demand experienced healthcare contractors. The surgery center adds OR buildouts and phased transition work tied to an aging campus being wound down. For regional contractors and healthcare trade partners, both projects are moving into active preconstruction now, and that's when the conversations that matter actually happen.
