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OSU Medical Authority outlines psychiatric center, OSU Medical Center expansion and partnerships with VA
Summary
OSU Medical Authority and trust leaders briefed the subcommittee on a $200,000-square-foot OSU Medical Center expansion, a new Oklahoma Psychiatric Care Center in Tulsa funded in part with private donations, and ongoing collaboration with the VA; authority asked for capital funding and discussed options for debt and days-cash tradeoffs
Eric Pollock, director and CEO of the OSU Medical Authority and Trust, told the Appropriations and Budget Subcommittee on Health that the authority is transitioning from facility stabilization to growth and education-focused expansion.
Pollock said the authority’s strategy centers on stabilizing and expanding clinical training capacity at OSU Center for Health Sciences and partnering with health systems to extend services across Northeast Oklahoma. He described a 200,000-square-foot expansion of OSU Medical Center — including new operating suites, procedure rooms and a pharmaceutical research lab funded in part with ARPA and other state support — and a separate Oklahoma Psychiatric Care Center in Tulsa, where construction was already underway with private contributions Pollock said totaled $20,000,000.
“Completion of the construction of the mental health hospital … is on track to be finished mid-2026,” Pollock said, noting private funding and coordination with the Department of Mental Health and Substance Abuse Services for operations.
Why it matters: Pollock said the medical authority supports university medical education programs, helps recruit and keep residents in Oklahoma and provides regional services that can reduce patients’ need to travel out of state for specialty care. He noted OU and OSU have both faced federal changes to Medicare reimbursement for graduate medical education and that the authority has served as a pass-through recipient for several large appropriations tied to research and workforce development.
Capital and cash strategy: Pollock presented options for financing the OSU Medical Center expansion and related projects. He said an illustrative $236,000,000 project portfolio could be funded with different levels of days-cash-on-hand and debt, and that a $250,000,000 bond over 30 years would carry substantial interest costs. Pollock urged the committee and legislative leadership to discuss appropriate days-cash targets because reducing days-cash on hand would lower required financing but increase liquidity risk. He asked lawmakers to weigh trade-offs between one-time appropriations and long-term interest expense.
Partnerships and workforce: Pollock described an $20,000,000 private fundraising milestone for the psychiatric center and a continuing partnership with Saint Francis Health System to improve operating performance (e.g., bulk purchasing and shared electronic medical record costs). He also said OU Medicine and OSU officials are coordinating with VA officials on a new VA hospital and that clinical alignment (shared cardiology faculty, for example) expands capacity without duplicating specialized services.
Committee discussion: Members asked about completion timing, potential change orders for the psychiatric center interior, and the use of ARPA funds. Pollock said some change orders reflect added private donations that enhanced interior amenities. Committee members also pressed for more specifics on debt sizing and timing; Pollock offered a range and said final financing will depend on the legislature’s appetite for cash versus debt.
What’s next: The authority asked the committee to continue conversations about the expansion’s financing approach and to consider appropriation strategies that minimize long-term interest expense while ensuring operating liquidity until projects produce additional clinical revenue.
