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North Zealand Hospital Construction Faces Further Cost Overruns and Delays

The construction of the New North Zealand Hospital is projected to exceed its budget by an additional one billion kroner, and the move-in date has been delayed by six months. The Capital Region’s Executive Committee will receive this information next Tuesday, according to a press release issued on Thursday.

Lars Gaardhøj, Chairman of the Capital Region, expressed his frustration with the escalating costs and delayed timeline. He acknowledged the disappointment for both patients and staff who must wait longer to utilize the new facility.

The Capital Region attributes the cost increase to rising prices in the construction market and increasing wages. Competition from large construction projects by Novo Nordisk and Fujifilm in the same area is cited as a factor driving up wages.

This is not the first time the region has allocated additional funds to the project, bringing the total budget close to nine billion kroner. The hospital, located in Hillerød, was initially slated for completion in 2020 but has faced multiple postponements.

In November 2023, the National Auditors criticized the hospital’s construction. The report also indicated that the region had consistently expanded the budget, which started with a financial framework of 5.3 billion kroner.

The construction was placed under increased supervision by the Ministry of Health and Elderly Affairs in 2020. The hospital is one of sixteen new “super-hospitals” being built, which include both expansions of existing facilities and entirely new buildings.

The original budget for all sixteen hospitals was 41 billion kroner when adopted in 2009, and it has since increased by billions on several occasions. The hospitals in Køge and Odense are, alongside the one in Hillerød, not yet finished.