$275M Lexington Medical Building Gets Contractor
Contractors and health care developers in Lexington should watch how partnership-financed outpatient projects shape future bids.
Updated on Nov. 4, 2026 in Construction
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Walsh Construction has been chosen as contractor for the $275 million Hamburg East Medical Office Building in Lexington, Kentucky, a 220,000-square-foot project that broke ground October 15. The project is delivered through a public-private partnership with PMB, which will plan, design, construct and finance the building.
Why it matters
For construction firms and health care real estate developers, the Hamburg East project shows UK HealthCare relying on a public-private partnership model to expand outpatient capacity without carrying the full build-out cost on its own balance sheet. Operators in the Lexington region should expect continued demand for medical office construction tied to the health system's outpatient growth plans.
The $275 million project covers 220,000 square feet, and the 41-acre Hamburg parcel was approved for acquisition in 2023. Projected Hamburg East volume of about 300,000 outpatient visits a year by 2034 compares with UK HealthCare's roughly 2 million annual ambulatory visits.
The players
Walsh Construction
A general contractor selected to build the $275 million Hamburg East project in Lexington.
PMB
A health care and real estate developer that will finance, build and operate the Hamburg East medical office building under a public-private partnership.
UK HealthCare
The University of Kentucky's health system, which is expanding its outpatient clinic network across central Kentucky.
Perkins&Will
An architecture firm serving as the architect on the Hamburg East Medical Office Building.
Cowgill Inc.
The original landowner and developer of the Hamburg site.
The details
PMB will plan, design, construct and finance the medical office building and also provide operations and maintenance services, so the contractor's role sits inside a larger delivery structure. Site preparation began in February 2024 and was completed earlier this year, clearing the way for the October 15 groundbreaking. Substantial completion is scheduled for December 2028, with first patient visits targeted for spring 2029.
Timeline
2023: University trustees approved acquisition of about 41 acres in Hamburg.
February 2024: Site preparation work began on the Hamburg site.
October 15: Hamburg East Medical Office Building broke ground in Lexington.
December 2028: Substantial completion of the building is scheduled.
Spring 2029: First patient visits are targeted at Hamburg East.
Market Landscape
The Hamburg East project is delivered through a public-private partnership with PMB, which will both finance and operate the building. It sits within UK HealthCare's broader outpatient expansion, alongside its existing Frankfort clinic and a planned Newtown Pike clinic in Lexington.
Contractors and subcontractors bidding on Lexington medical construction should track the pace of UK HealthCare's outpatient projects, since they signal future project pipeline. Firms in health care real estate should evaluate how public-private partnership structures affect their financing and operations exposure, with qualified counsel reviewing any contract terms.
The takeaway
Operators watching Lexington construction should note that large health system projects are moving to partnership delivery models that shift financing and operations risk to developers. Calendar the December 2028 completion date and monitor the Newtown Pike clinic plans as indicators of where the next construction bids will come from.
What happens next
Substantial completion of the Hamburg East building is scheduled for December 2028, with first patient visits targeted for spring 2029.
Further reading
For more on how large health projects get built, explore Construction coverage across the region.
Source note: This article includes information reported by Engineering News-Record (ENR) magazine.
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