KEY POINTS
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Grady Health System is investing $1 billion in a new medical campus, including a medical office building, a 200-bed acute care hospital, and a freestanding emergency department.
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While institutional construction is projected to decline by 3.9% in 2026, according to the ConstructConnect forecast, the Hospitals/Clinics segment is expected to grow by 11.8%.
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The $1 billion project will roll out in phases, starting with a freestanding emergency department opening in June 2026, followed by a medical office building in 2028, and a 200-bed hospital in 2031.
Grady Health System plans to build a major new medical center campus in South Fulton County, according to a March 18, 2026, statement from the system.
Phased Construction and New Facilities
The $1 billion construction project near Atlanta will open in phases to help manage the region’s rapid growth, officials said.
Work centers near a freestanding emergency department, currently under construction on Campbellton Fairburn Road in Union City, which will open in June 2026. Union City is 20 miles southwest of downtown Atlanta.
Next, crews will finish an adjacent medical office building in early 2028. Finally, construction of a 200-bed acute care hospital is anticipated to open to the public in 2031.
Hospital Construction Sector Poised for Growth
Grady’s announcement comes as the hospital sector growth is projected to rise, according to ConstructConnect.
In the Spring 2026 Construction Starts Forecast, Chief Economist Michael Guckes highlighted a modest 1.5% growth in total nonresidential building activity for 2026.
However, he noted significant variations across sectors, including institutional construction, which encompasses structures serving the public interest—such as healthcare, education, government and civic functions, religious facilities, military installations, and public safety buildings.
Guckes stated, “Institutional construction is projected to decline by 3.9% in 2026,” while the Hospitals/Clinics segment is expected to grow by 11.8%.
Comprehensive Services for the Community
The new medical office building will hold imaging services, a surgery center, specialty clinics, pharmacy services, and a dedicated pediatric floor run by Children’s Healthcare of Atlanta.
The main hospital will feature critical care units and function as a Level 3 trauma center, ready to stabilize and treat serious injuries.
A rendering of the Grady Health System medical center campus project in South Fulton County, outside of Atlanta, with the planned hospital and adjacent emergency room and medical buildings shown. Image: Grady Health System
Funding and Community Impact
Grady will fund the project using a mix of sources. This includes $300 million in Fulton County bonds, system financing, and a multi-year capital campaign. Fulton County commissioners approved the project on March 18, 2026.
By building the healthcare campus, Grady anticipates relieving current capacity limits, bringing essential medical care closer to home, and saving lives.
Grady Health System serves more than 2,000 patients daily and 155,000 emergency visits annually. Its downtown Atlanta facility is the only Level I trauma center in the city. Grady is one of the nation’s largest safety net health systems, with a comprehensive network of hospitals, clinics, and specialty centers.
What’s Next
Specific details about the construction project, including an anticipated start date and bidding process, have not yet been released. Stay connected with ConstructConnect News for construction industry news and construction market analysis to stay ahead of what’s building next.
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