NYU Hospitals Center Receives Certificate of Need (CON) Approval for Construction of New Clinical Pavilion

The New York State Department of Health (DOH) approved NYU Hospitals Center’s (NYUHC) Certificate of Need (CON) for the construction of the new state-of-the-art clinical pavilion, the Helen L. and Martin S. Kimmel Pavilion (Kimmel Pavilion). This important milestone brings NYUHC one step closer to beginning the construction of the facility, which is scheduled to start mid-2013 and to be completed in 2017.

NYUHC is the legal entity that owns and operates Tisch Hospital, Rusk Institute of Rehabilitation Medicine, the Center for Musculoskeletal Care (CMC), Hospital for Joint Diseases (HJD), and NYU Cancer Institute, all of which in addition to NYU School of Medicine compose NYU Langone Medical Center.

The construction of the Kimmel Pavilion is an integral aspect of NYU Langone’s sweeping campus transformation designed to modernize its aging infrastructure in order to more efficiently and effectively meet the health care demands of today’s complex health care delivery system.

All of the pavilion’s 374 inpatient rooms will be single-bedded, to aid in infection control, help manage the census, and enhance patient and visitor satisfaction. Of note, the total number of licensed beds at the medical center will remain unchanged. Additionally, there will be 32 advanced operating rooms and 39 non-inpatient beds, or NIBs, for patients who require observation but not hospitalization following a procedure. It will also be home to a dedicated children’s hospital, the Hassenfeld Pediatric Center.

This project is expected to generate close to 10,400 construction and related jobs in New York, $1.44 billion in economic output and 9,100 non-construction jobs which amounts to, on average, 2,782 full-time jobs and nearly $604 million in output annually over the next seven years. The permanent economic impacts include the creation of 1,100 new jobs at the medical center when the new space is fully built-out and occupied, and which is projected to add about $233 million annually to the New York economy.

The Certificate of Need review is a rigorous process mandated by state law, which governs the establishment, ownership, construction, and renovation of healthcare facilities in the state. Specifically, DOH’s endorsement means the medical center’s plan satisfies the state’s criteria for meeting a public need, for demonstrating financial feasibility, and for compliance with all regulations governing construction of this magnitude. It also reflects a favorable assessment of the character and competence of the applying institution as a healthcare service provider.