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OU Health asks Legislature for $20 million toward larger $294M pediatric cardiothoracic expansion
Summary
University Hospitals Authority leaders described a pediatric cardiothoracic program that recently performed Oklahoma's first pediatric heart transplant and asked for $20 million in the upcoming budget year as part of a broader financing plan for a new pediatric surgical facility and adjacent expansion.
Randy Dowell, CEO of the University Hospitals Authority, and Diana Galatian, authority chief financial officer, told the committee OU Health has expanded pediatric cardiothoracic services and performed the state’s first pediatric heart transplant. They briefed senators on a larger campus agenda and requested a $20 million appropriation tied to a broader $250 million public funding need for a new pediatric surgical and support facility.
Program and facilities: Authority leaders said OU operates the state’s only NCI‑designated cancer center, Oklahoma Children’s Hospital (the state’s only comprehensive children’s hospital and only level 1 pediatric trauma center and level 4 NICU), and an expanding pediatric surgery program now performing more than 500 pediatric surgeries a year. Randy Dowell said the current ORs serving pediatric cardiac cases are in a 1976 operating footprint that does not accommodate modern equipment or the program’s growth.
The ask and financing options: The authority presented an estimated project cost of about $294 million to provide a pediatric surgical facility attached to the existing children’s hospital and said the public portion under consideration is roughly $250 million. For the FY26 request, authority CFO Diana Galatian asked the committee to consider a $20 million appropriation intended to align with a 20‑year bond payment if the authority or trust issues debt. She noted a Legacy Capital Fund option (state cash repayment model) that would reduce annual appropriation burden but require a larger one‑time cash commitment from the state.
Why now: Dowell and Galatian framed the funding as necessary to match the capability of a nationally recognized surgical team, reduce out‑of‑state transfers for complex pediatric cardiac care, and to avoid higher long‑term interest expense by reducing debt issuance. They said the new building would link to the existing children’s hospital by skybridge and take about four years to complete from the end of session if funded.
Indigent care context and other state roles: Dowell reminded the committee the authority administers statutory indigent‑care allocations to support OU Health’s uncompensated care; those historic appropriations have also affected OU Health’s bond rating. The authority asked for clarity on capital funding approach and emphasized it had already committed philanthropic and ARPA resources to other projects.
Ending: Authority leaders said they would return with guaranteed maximum prices and financing details when bids are available and invited committee site visits to review the constrained OR footprint and pediatric program.
