LANSING, Mich — The University of Michigan Board of Regents has approved two major health care projects in Lansing totaling $143 million. The developments include a new behavioral health center and an ambulatory surgery center, both expected to open in 2028.
University of Michigan Board of Regents approved two new health care projects in Lansing totaling $143 million.The first is an $83 million, 64-bed behavioral health center serving adults, geriatric patients, and for the first time locally children and adolescents.The second is a $60 million ambulatory surgery center featuring six operating rooms for same-day procedures.Both facilities are expected to open in 2028, with hospital leaders emphasizing the growing need for mental health services and additional medical staff.
WATCH: “We need it”: A look inside UM Health Sparrow’s health care expansion in Lansing
“We need it”: A look inside UM Health Sparrow’s health care expansion in Lansing
The first project is an $83 million, 64-bed behavioral health facility designed to serve adult, geriatric, and pediatric patients. Hospital officials say the addition of child and adolescent inpatient and outpatient services will fill a critical gap in care in mid-Michigan.
Anne Marie Creed, president of UM Health Sparrow Lansing, said the behavioral health center is especially important given the growing demand for mental health services.
“Those 64 beds will comprise adult patients, geriatric and our kid/adolescent patients,” Creed said. “The child/adolescent is new for us. We currently do not have child/adolescent inpatient beds or outpatient services either.”
Creed added that the facility will focus not only on inpatient treatment but also on helping patients transition back into the community after discharge.
According to hospital data, more than one in five adults in the United States experienced mental illness in 2024, and more than one in seven youth ages 6 to 17 have a mental health disorder.
Registered nurse Leah Rasche, a member of the Michigan Nurses Association, said emergency departments frequently treat patients experiencing mental health crises while managing other medical emergencies.
“We have to help these patients with their needs and in their crisis while we’re dealing with other medical emergencies that are coming in, so it can be a lot,” Rasche said.
The second approved project is a $60 million ambulatory surgery center that will include six operating rooms and provide same-day surgical care. Officials say the center will expand access to outpatient procedures and improve efficiency within the hospital system.
Hospital leaders acknowledge additional staff will be needed to support the expansion.
“We’ll definitely need more people,” Rasche said. “We always need more nurses.”
Construction timelines are still being finalized, but both facilities are projected to open in 2028. Hospital officials say the projects represent a significant investment in expanding health care access and addressing growing medical needs in Mid-Michigan.
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