WASHINGTON – Fulfilling a commitment to Illinois veterans, Secretary of Veterans Affairs Anthony J. Principi today joined Rep. Danny Davis (D-7-IL) and Chicago officials to break ground for a new state-of-the-art health care facility. The $99.5-million, 200-bed inpatient care facility will be built on the grounds of the Jesse Brown VA Medical Center on South Damen Avenue.
“With this new bed tower, Illinois veterans are an important step closer to having 21st century health care in a 21st century facility,” said Secretary Principi.
The new addition will also include seven operating rooms, an intensive care unit, a surgical supply processing unit and a chapel. It will connect to the existing structure on South Damen Avenue. Construction of the bed tower is expected to be completed by 2007.
The new bed tower is part of the broader VA plan called CARES – Capital Asset Realignment for Enhanced Services. In August 2003, VA shifted inpatient services from the department’s Lakeside division to the West Side campus (now the Jesse Brown VA Medical Center).
In doing so, the Lakeside division became a prime candidate for enhanced-use leasing, in which VA leases property for potential redevelopment, in this case a modernized health care campus. The enhanced-use lease is expected to generate up to $50 million in revenue, with significant additional savings and cost avoidances.
Under terms of the lease, VA could continue to use the hospital property at 333 East Huron Street in the Gold Coast (Streeterville) section of Chicago until December 31, 2007.
Principi announced the lease agreement between VA and Northwestern Memorial Hospital and the Rehabilitation Institute of Chicago during a groundbreaking ceremony today.
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