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UT Austin partners with cancer center MD Anderson to build new campus hospital

The project will be made possible by the demolition of the 500,000-square-foot Frank Erwin Center, which officially closed in May 2022.

AUSTIN, Texas — The University of Texas at Austin will partner with cancer treatment center MD Anderson to build two new hospitals on campus.

The project will be made possible by the demolition of the 500,000-square-foot Frank Erwin Center, which officially closed in May 2022. Its replacement, the Moody Center, officially opened to the public in April 2022 and in April 2023 celebrated its jam-packed first year.

In May, the UT System's Board of Regents approved an item paving the way for Dell Medical School's expansion. The full demolition is estimated to cost $25 million, and the university hopes to finish the demolition project by October 2024.

University Chancellor James Milliken and Board of Regents Chair Kevin Eltife announced the project on Monday along with Gov. Greg Abbott.

They said the hospitals will be located at The University of Texas at Austin Medical Center, featuring one hospital owned and operated by The University of Texas MD Anderson Cancer Center and a UT Austin hospital.

“The establishment of the University of Texas at Austin Medical Center, with UT MD Anderson Cancer Center adjacent to a new university hospital and access to all of UT Austin’s education and research assets, will undoubtedly result in transformative cancer care, provide students at the flagship campus with unmatched experiences, and benefit patients throughout the state and nation for all time,” Eltife said.

Houston-based MD Anderson is a branch of the UT system and was recently named No. 1 in the country for cancer care by U.S. News & World Report. It is the largest cancer care center in the U.S. and one of the original three comprehensive cancer centers in the country.

"There is both need and opportunity here. We are the largest city in the country without an academic medical center, but also a place where inventors, investors, creators and innovators come together to get things done and make things happen," said Jay Hartzell, president of UT Austin.

MD Anderson's partnership with UT Austin will help raise the profile of Dell Medical School and greatly expand medical availability in the city. The UT MD Anderson hospital will be fully staffed by MD Anderson physicians.

“The State of Texas has been on a mission to use higher education to expand access to health care, and today marks a giant step towards achieving our goals,” Abbott said. “UT MD Anderson Cancer Center is ranked No. 1 for cancer care in America, with people across the world traveling to Houston to access care. But rather than having Texans travel to MD Anderson in Houston, we will now bring the world’s best treatment to them.”

It's estimated the project could cost around $2.5 billion, but Eltife said regents are still discussing the total investment number.

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