The University of Nebraska Medical Center (UNMC) took a major step forward Oct. 3, when the Board of Regents gave the green light to the second design phase of Project Health, a $2.19 billion facility intended to reshape health care education, research and patient care across Nebraska.
The approval funds construction of the shell and core of the building, estimated to cost roughly $1.22 billion. This marks a pivotal move toward realizing a new state-of-the-art clinical learning center, inpatient hospital and research hub on the UNMC campus.
Project Health launches Project NExT, a larger multi-phase initiative led by UNMC and Nebraska Medicine to reinvent healthcare education research, clinical care and disaster readiness in the state. After Project Health, the program’s first phase, future phases include further expansion to boost regional partnerships and the creation of a joint civilian-military medical surge facility through additional public-private partnerships (P3s).
Project NExT plans to expand the number of health professionals trained in Nebraska and stimulate economic growth for the region. Officials say they want to elevate research capacity through a modern infrastructure for education, research and clinical care. The facilities will also enhance Nebraska’s readiness for all-hazard events, including pandemics, natural disasters and biothreats.
UNMC and its partners have pushed forward significant steps in 2025 that bring Project Health closer to realization. In April, the University of Nebraska system (NU) board of regents approved the facility’s initial design phase, clearing the way for groundwork, including utilities, site excavation, drainage and foundational preconstruction elements like elevator shafts.
This second design phase approval allows for the construction of the building’s shell and core—a commitment of about $1.22 billion out of the total $2.19 billion project. Officials have not set a definitive timeline, but groundbreaking is expected to take place next year with construction lasting another seven years, according to Grow Omaha.
Funding for Project Health is structured as a public-private mix of sources. NU and Nebraska Medicine are contributing internally, while major support is expected from philanthropic donors, the state of Nebraska and the city of Omaha.
Private financing also plays a role. The NU Board of Regents has authorized exploring up to $500 million in borrowing to help support this and related projects. The state Legislature has also committed funds, including an allocation of $300 million toward Project Health, with the first $100 million already released.
According to UNMC, 66% of the 93 counties in Nebraska have been designated as medically underserved. The Nebraska Center for Nursing estimates the state will face a shortage of 5,436 nurses this year. Once complete, Project Health will house more than 550 beds and dedicate about 30% of its space for educational use. The facility will open for inpatient, research, education and clinical operations. Officials hope to offset the growing need for healthcare and healthcare professionals. UNMC’s interim chancellor projects an expansion of programs in Kearney could boost graduate numbers by 75% over the next five years.
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