Munson Healthcare Breaks Ground on New Neonatal Intensive Care Unit in Traverse City

Munson Healthcare Breaks Ground on New Neonatal Intensive Care Unit in Traverse City
05.29.2026

$40 Million Investment Expands Women’s and Children’s Services

Munson Healthcare today announced it broke ground earlier this week on a new Neonatal Intensive Care Unit (NICU) at Munson Medical Center (MMC), marking a major step forward in a broader $40 million investment in women’s and children’s services across Northern Michigan.

Munson leaders and providers at ceremonial groundbreaking for NICU

The new NICU will be a 22,000-square-foot, one-story facility featuring 24 beds and designed to deliver state-of-the-art care for the region’s most vulnerable patients. Construction is expected to take approximately 18 months, with completion targeted for late 2027.

Children at ceremonial groundbreaking for NICU

“Every family deserves the highest level of care during life’s most critical moments,” said Ed Ness, President & CEO of Munson Healthcare. “This new NICU represents our commitment to providing a healing environment, leading-edge technology, and the support families need—right here in our community.”

Munson Medical Center is home to the only NICU in Northern Michigan and provides specialized care to more than 325 newborns each year from across the region. The new NICU will be connected to the existing hospital and located between Munson Medical Center and the Cowell Family Cancer Center, improving access and continuity of care for patients and families.

“As the region’s only NICU, we care for some of the most fragile infants and their families during incredibly critical moments,” said Dr. Matthew Arnold, Neonatologist & Medical Director at Munson Medical Center’s NICU. “The design of this new unit reflects the future of neonatal care, with enhanced technology, private spaces, and a strong focus on family involvement. This investment ensures we can continue delivering advanced, high-quality care close to home while expanding our ability to serve families across Northern Michigan.”

In addition to the new NICU, Munson Healthcare has made significant progress in enhancing its maternity and pediatric services:

  • Nearly two-thirds of the hospital’s 19-bed maternity unit has been renovated, with a $4 million investment since 2023 to create a safe, modern, and welcoming environment for patients and families
  • Planning is underway for upgrades to the pediatric unit, with construction expected to begin in early 2026

Together, these investments reflect Munson Healthcare’s ongoing commitment to delivering high-quality, patient-centered care close to home.

“We are profoundly grateful to our community for their steadfast patience and support for this project while we navigated the financial headwinds of recent years,” said Debra Henderson, Chief Development Officer, Munson Healthcare. “This project is such a powerful testament to the impact of charitable giving, as donors have contributed $10 million to enhance women’s and children’s services here in Northern Michigan. We are thrilled to be taking this next step in delivering top-quality care to Munson’s littlest patients and look forward to sharing more updates as construction progresses.” 

Additional updates will be shared as construction progresses.