UT advances $1B initial phase of North Austin medical center

The University of Texas (UT) System Board of Regents on Aug. 12 approved a $1 billion first phase for the UT Dell Medical Center in North Austin.  

Phase 1 of the project focuses on clearing and preparing the site. It also covers ordering certain materials early, though it does not cover the hospital building itself. 

Other items in the Phase 1 plan include subgrade structures, such as tunnels and utility vaults, as well as excavation and various utility installations. The complete cost breakdown for the phase includes: 

• $650 million – Site development. 

• $100 million – Architectural and design services. 

• $85.2 million – Project contingency. 

• $60 million – Fixed equipment. 

• $52 million – Institutionally managed work. 

• $50 million – Furniture and movable equipment. 

• $2.8 million – Project management. 

Site development, accounting for almost two-thirds of the budget for this phase, is described as both ground level and subterranean work, including grading, drainage, water, sewer, electrical duct banks and roads. For design services, officials chose Skidmore, Owings and Merrill as the design architect when announcing project changes in April. 

Contingency is reserve money for any unexpected expenses, while equipment was split up into two separate categories. Fixed equipment accounts for items built into the eventual structure itself, while furniture and movable equipment are items brought in afterwards. The $52 million for institutionally managed work goes to UT, which will then contract out those funds directly, aside from the main construction contract. 

The $1 billion for this phase comes from Revenue Financing System bond proceeds. Officials expect to repay the debt from clinical revenues at $56 million a year, meaning the system borrows the funds and pays them back from money the medical center earns treating patients. 

The project was approved for planning in 2024 with a total cost of $2.9 billion. That number was amended in 2025 to a total cost of $5 billion, then revised again in July 2026 after officials selected a different site and amended the program details. Board documents currently do not list an updated total. Originally planned for the location of the Frank Erwin Center downtown, the site was moved in 2026 to North Austin. 

As for the medical center itself, the plan calls for about 2.5 million gross square feet of space sitting on about 27 acres, located at the former Pickle Research Campus. It would house tertiary care, which is specialized treatment patients typically get after a diagnosis, rather than routine walk-in services. Other planned services include critical care, advanced diagnostics, rehabilitation and surgery, with cancer care provided through a partnership with UT M.D. Anderson Cancer Center. 

When UT announced the project’s new location and name in April, officials said the center would have 300 to 500 beds, outpatient facilities and a full-service emergency department. Officials targeted 2030 for the center to open, with specialty programs being phased in through 2032. Plans also call for a modern, digitally enabled infrastructure meant to pair decision-making with advanced technology, robotics and automation. 

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