VA Palo Alto Medical Center Psychiatric Hospital Project

under construction

The Department of Veterans Affairs (V.A.) planned to replace outdated, earthquake-prone structures at its medical center in Palo Alto, California, with newer, safer facilities including a state-of-the-art psychiatric hospital. Construction began in 2009 with an expected completion in six years and an initial budget of $450 million. However, after 16 years, costs have ballooned to nearly $1.6 billion and completion is now expected by 2036. The project has faced significant administrative and governance failures, including lack of proper oversight, cost-benefit analysis, and documentation.