Report to Examine VCU Health's $73 Million Loss From Failed Project

Richmond, Va. (Newsradiowrva.com) - A soon-to-be-released report from the Joint Legislative Audit and Review Commission (JLARC) will look into Virginia Commonwealth University (VCU) Health’s “Clay Street Project,” with a specific focus on how it resulted in a loss of $73 million.

“We need to get to the bottom of it,” said Sen. Creigh Deeds (D-Charlottesville) at a JLARC meeting on Tuesday, May 21, when this subject came up.

VCU leaders initially said the project, which would have led to construction along N. 10th Street and Clay Street in Richmond, would “play a critical role in supporting a thriving urban center.”

In backing out of it, officials claimed rising costs rendered it no longer viable. VCU Health also said the cost made up less than 2.5% of its annual budget, but leaders are eager to hear the Commission’s report.

“The project highlighted some issues with the health system’s capital process and governance structure,” said a JLARC spokesperson at Tuesday’s meeting.

JLARC will present its findings regarding this topic in June.