Super Hospital Becomes One Billion Danish Kroner More Expensive – and Delayed

The budget for the construction of the New North Zealand Hospital in Hillerød is expected to exceed the original estimate by up to one billion Danish kroner.

This is stated in an update that the Executive Committee of the Capital Region of Denmark (Region Hovedstaden) receives on Tuesday, June 10. The reason for the budget overrun is primarily due to price increases in building materials and rising wages in the construction industry.

Furthermore, the move-in date to the new hospital, which was originally planned for the turn of 2027, has been postponed to late summer of the same year. The delay is due to factors including a shortage of qualified workforce and changes in authorities’ practices for approval of fire safety.

Chairman of the Regional Council Lars Gaardhøj (S) expresses great frustration over the situation:
– It is really frustrating that we once again find ourselves in a situation where the construction is more expensive than expected. Even though it is due to external circumstances, we still have a major task of finding the funds in an already extremely tight construction budget, he says.

The delay also raises concerns for the chairman:
– Although it is just over half a year, it means that patients and employees will have to wait even longer to use the new hospital – it is extremely disappointing.

According to Mogens Kornbo, director of the Capital Region’s Center for Properties, there has been a significant price development in the construction sector in recent years. Materials such as copper and technical insulation have increased by 29 percent and over 50 percent respectively since 2022. At the same time, there is a high demand for labor from companies like Novo Nordisk and Fujifilm, which is pushing up wages.

Hospital director Eva Zeuthen Bentsen points out that the existing facilities in Hillerød are not optimal and looks forward to the new hospital, despite the delay:
– I wish we could provide patients with better facilities today. The old buildings in Hillerød are not optimal for our working environment, so we are very much looking forward to moving.

The financial challenges have not yet been finally determined, and no decision has been made on how the additional costs will be covered. The Capital Region of Denmark is closely monitoring the developments and will continue to update on the progress of the project.