Hailey Tran
Healthcare construction is booming, with a sharp increase in the construction of new hospitals, expansions, and off-campus clinics and medical offices. In 2015, there were about 1,340 projects that started in the past year or remained in the planning stages, with a total value of about $97 billion. This trend has continued, with 65% of hospitals adopting construction standardization, and 63% including patients and community members in the design process. The top cities for medical construction include Atlanta, Boston, Chicago, Dallas-Fort Worth, Houston, Los Angeles, Miami, New York, Newark, Philadelphia, and Washington, D.C. The average cost of constructing a new hospital is about $400 per square foot, but this varies depending on location, with New York City being significantly higher at about $1,200 per square foot.
| Characteristics | Values |
|---|---|
| Average new hospital construction costs | $400 per square foot, excluding equipment |
| Average new hospital construction costs in New York City | $1,200 per square foot, excluding equipment |
| Number of hospitals including patients and community members in the design process | 63% |
| Number of hospitals using design strategies to mitigate injury from falls | 61% |
| Number of hospitals using patient lifts in transport to the bedside | 50% |
| Number of hospitals with medical office building projects underway | 17% |
| Number of hospitals planning ambulatory facilities within the next three years | 9% |
| Number of hospitals with specialty construction projects | 53% |
| Number of hospitals adopting construction standardization | 65% |
| Number of hospitals that have adopted mock-ups and staff interviews to improve their facility planning processes | 57% |
| Number of hospitals using evidence-based design for new construction and renovation projects | 60% |
| Number of hospitals including a command center | Not available |
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What You'll Learn
New hospitals are being built to replace older facilities
In the UK, the government has pledged to build 40 new hospitals by 2030, with a budget of £3.7 billion. However, critics argue that this number is misleading as many of these projects involve replacing or refurbishing existing hospitals or buildings rather than constructing entirely new ones. For instance, the Dyson Cancer Centre in Bath, which opened in April 2024, is considered one of the 40 new hospitals but was described as "a new build on [an] existing NHS estate."
Similarly, the government's plans include rebuilding and refurbishing several hospitals to replace ageing estates, such as the Royal Liverpool University Hospital, Watford General Hospital, Whipps Cross University Hospital, and West Suffolk Hospital. The programme also includes the development of specialist hospital sites, like the National Rehabilitation Centre and Oriel, an eye care facility in north London.
In the US, several hospital megaprojects are underway or proposed. For example, the Children's Hospital of Philadelphia announced a $3.4 billion investment in new construction, including a 22-story inpatient tower adding 300 beds. Indiana University Health plans to build a new $1.6 billion hospital in downtown Indianapolis, featuring three glass-fronted towers with a rooftop helipad. Brooklyn Hospital Center has proposed a $1 billion plan to redevelop its 175-year-old facility, which includes expanding emergency, maternity, and cancer care services.
Additionally, Mount Sinai Health System in New York City has earmarked $600 million for a replacement facility for Mount Sinai Beth Israel, and the University of Washington's Harborview Medical Center in Seattle has recommended $1.74 billion in upgrades. These projects aim to enhance healthcare infrastructure and improve patient care by providing modern facilities and expanding capacity.
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Population growth is driving hospital construction
The need for hospital construction extends beyond Dallas, with healthcare construction booming nationwide. Revista, an Annapolis-based company tracking medical construction, reported approximately $97 billion in projects for new hospitals, expansions, and off-campus clinics and medical offices in 2015. Atlanta, Boston, Chicago, Dallas-Fort Worth, Houston, Los Angeles, Miami, New York, Newark, Philadelphia, and Washington, D.C., were identified as the top cities for medical construction.
Population growth and an aging population are key factors driving the need for more hospitals and healthcare facilities. The number of people with health insurance has risen, and as the population ages, there will be increased demand for bed space by the chronically ill. This has led to the development of outpatient facilities as a cost-effective solution, allowing hospitals to treat the most critically ill patients on-site.
Hospital construction is also influenced by healthcare reforms and the need for high-tech facilities. The 2010 enactment of the Patient Protection and Affordable Care Act shifted the design process to focus on evidence-based patient satisfaction metrics. Hospitals are now involving patients, community members, and various stakeholders in the design process to ensure their needs are met. Additionally, hospitals are incorporating innovative features, such as command centers and resilient designs, to enhance disaster preparedness and overall patient care.
The construction of new hospitals and the renovation of existing facilities aim to address the changing healthcare landscape and the growing needs of the population. By investing in healthcare infrastructure, communities can improve access to medical services and enhance the patient experience.
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Patient satisfaction is a key consideration in hospital design
Healthcare construction is booming, with about $97 billion in projects for new hospitals, expansions, and off-campus clinics and medical offices currently underway. As of 2017, there were 5,564 registered hospitals in the US, and this number is only growing. With such a large number of hospitals, patient satisfaction is a key consideration in hospital design.
Patient satisfaction is a critical factor in the provision of hospital care. It allows health authorities to improve the quality of care. The physical environment of a healthcare practice can impact stress, safety, effectiveness, quality of care, trust, and patient satisfaction. This has given rise to evidence-based design (EBD), a process of basing design decisions on credible research to achieve the best outcomes. EBD studies examine how the physical environment of healthcare spaces can influence perception and outcomes.
The design of a healthcare facility should facilitate easy access, privacy, family inclusion, and comfort. This will promote lower stress, increase compliance with treatment plans, and improve staff accuracy and mood, resulting in higher patient satisfaction. The waiting area should provide opportunities for patients to learn about the practice, practitioner, and staff. Color, lighting, and art set the mood for the patient experience. For example, a modern design with fluorescent lighting and monochromatic colors may suggest high energy and modern technology, while earth tones, incandescent lighting, and natural stone may imply warmth and compassion.
Design considerations start in the parking lot. Having sufficient parking, easy access, and well-marked navigation is important to setting the tone for the patient experience. Well-maintained landscaping and storefront design provide clues about the practitioner within. Sign design should make it easy for patients to identify services, locate the practice, and increase visibility within the community.
Hospitals are increasingly including patients and community members in the design process. This allows hospitals to meet patient expectations and improve patient satisfaction.
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Hospitals are including disaster-preparedness features
Disaster preparedness in hospitals is a critical global concern. Hospitals are increasingly including disaster-preparedness features in their design to mitigate the impact of natural or artificial disasters. This involves adopting construction standardization and incorporating patient and community input in the design process. For instance, Miami-based Jackson Health System unveiled a $1.8 billion building plan in 2016, which included rebuilding at the Jackson Memorial Hospital campus.
Hospitals face challenges in protecting facilities, healthcare workers, and patients during disasters. To address these challenges, hospitals must implement strategies, training, and community participation to ensure safety. Essential strategies include risk assessment, staff training, communication, and collaboration with external partners. For example, the National Disaster Management Authority in India develops emergency response strategies, conducts drills and simulations, and stockpiles essential supplies.
Additionally, hospitals must be equipped to handle patient overflow during emergencies. This requires the right strategies, processes, and tools to effectively assess, treat, and manage patients with various degrees of disease and injury. Doctors, nurses, and support workers are crucial resources in these situations, and their safety and ability to provide care must be ensured through training and protective equipment.
To facilitate disaster preparedness, various toolkits and resources are available. These include the Pediatric Disaster Healthcare Preparedness Toolkit, which offers guidelines and templates for creating disaster plans, and the MDPH Hospital Evacuation Toolkit, which assists hospitals in developing comprehensive evacuation plans. Furthermore, the Harvard School of Public Health Emergency Preparedness and Response Exercise Program (HSPH-EPREP) collaborates with emergency preparedness bureaus to enhance disaster preparedness and response capabilities.
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Construction costs are higher in some cities
The construction costs of hospitals vary widely depending on several factors. The average construction cost of a hospital is typically between $60 million and $190 million, but this can go as low as $52 million for a micro-hospital or as high as $210 million for a large private hospital. The cost per square foot of a hospital building ranges from $200 to $600, with emergency hospitals being the cheapest and modular hospitals being the most expensive.
The cost of constructing a hospital depends on various factors, including the size, location, design, and project complexity. The number of beds in a hospital is a significant factor influencing construction costs, with larger hospitals requiring more equipment and supplies, resulting in higher expenses. The market demand, availability of construction materials, and inflation rates also vary across cities and countries, impacting the overall construction costs.
Location plays a crucial role in determining the total costs of building a hospital. Major cities tend to have higher construction costs per square foot than suburban or rural areas. For instance, in the first quarter of 2022, Los Angeles had one of the highest construction costs in the US, averaging $772 per square foot, while Las Vegas had the lowest at $437.50. Similarly, in the first quarter of 2024, Portland and San Francisco were among the most expensive cities for hospital construction, with costs ranging from $800 to $1,100 in Portland.
The complexity of hospital projects also impacts labour costs. Hospitals must be designed and constructed to comply with current standards and adapt to the industry's future growth. Additionally, the integration of high-tech medical equipment, medical gases, communication technology, and fire protection systems drives up construction costs. Furthermore, special attention must be given to infection control procedures, staff needs, and patient comfort, all of which contribute to higher construction expenses.
Market attributes also influence construction costs. Hospitals built in areas with high future development potential will likely demand higher costs for services. Patient satisfaction is another factor that impacts costs, especially for hospitals relying on Medicare, as expenses are often tied to patient outcomes and satisfaction. Hospitals that are flexible and designed to reduce overcrowding tend to have better patient satisfaction reports.
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Frequently asked questions
As of 2015, there were about 1,340 hospital construction projects in the US that were either started in the past year or in the planning stages. These projects are worth about $97 billion.
The average cost of constructing a new hospital, excluding equipment, is about $400 per square foot. In New York City, it is about $1,200 per square foot.
The uptick in medical construction is driven by several factors, including the need for off-campus buildings, such as urgent care facilities, and an increase in the number of people with health insurance. Other factors include healthcare reform, population growth, and the aging of baby boomers.
Some examples of new hospitals being built in the US include the $1.3 billion Parkland Health & Hospital System in Dallas, the $800 million Clements Hospital in Dallas, and the $123 million trauma tower at Methodist Hospital in North Texas.
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