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Health First scales back $500M project, including new Merritt Island hospital

Officials cited higher prices for labor and construction as reason for move

MERRITT ISLAND, Fla. – Plans are changing for a new hospital campus coming to Merritt Island.

Last summer, after a presentation from Health First, Brevard County commissioners unanimously gave their support to the $500 million project between Merritt Avenue and Highway 520.

Then on Tuesday, declining to be interviewed about its financial state, Health First shared a statement citing inflation — higher prices for labor and construction — as a reason why the county’s largest employer will still relocate Cape Canaveral Hospital four miles west, but it will no longer build what Health First called a “wellness village.”

CEO of retail Matt Gerrell pitched the amenities of the wellness village to commissioners last July.

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“We’re going to continue to provide ‘healing well’ services such as hospitals, ambulatory surgery center, medical office buildings,” Gerrell said. “But we’re going to add in ‘living well’ services such as retail, healthy food options and child care.”

Animation showed the property close to the Merritt Square Mall was also originally going to include a new fitness center and spa and a children’s playground.

Health First said it’s also pausing plans to build wellness villages near its hospitals in Melbourne and Palm Bay.

The Merritt Island hospital will be seven stories and have 120 beds, which is 30 beds less than Cape Canaveral Hospital has now.

In initial reporting on this story, News 6 reported construction was expected to start in 2020.

Now, Health First said it could break ground on the new hospital next year.

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About the Author
James Sparvero headshot

James joined News 6 in March 2016 as the Brevard County Reporter. His arrival was the realization of a three-year effort to return to the state where his career began. James is from Pittsburgh, PA and graduated from Penn State in 2009 with a degree in Broadcast Journalism.

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