St John Memorial project


After peaking in 2008, construction in the healthcare sector declined over the next four years. Finally, a slight rebound started in 2013 and continued growth is expected throughout 2015. Hospital construction projects aren’t expected to be large, billion-dollar endeavors, however. At Modern Healthcare, Andis Robeznieks explains the outlook for healthcare related construction in 2015 and how the landscape has changed from previous years.

  • Renovations and Expansions

Many of the hospital construction projects expected to begin in 2015 are likely to be smaller renovations and expansions of existing facilities. Older hospitals are being forced to adapt to changes put in place by the adoption of the Affordable Care Act, which dictates that facilities become more efficient for patients while also keeping costs to the hospital at a minimum. Most hospitals have already seen an increase in their patient base and have experienced the need for expanded and improved facilities.

  • Eliminating Excess

In the past, many large-scale, full-service hospitals were constructed with aesthetic luxuries superfluous to patient needs. Large atriums, fountains in lobbies and other excessive design elements may have had their place in creating a pleasant atmosphere, but they’re the first thing to go in current projects where the bottom line is being closely scrutinized. Instead, hospital projects in 2015 are using a “value-based design”. This strategy earmarks the budget entirely for features that help improve the staff’s efficiency and benefit a patient’s care.

  • Converting from Full-Service

While many small towns previously offered their own full-service hospitals, smaller profit margins are likely to lead to these facilities being converted into stand-alone, dedicated emergency departments. This will allow them to serve near-by clientele during times of immediate need while referring them to larger hospitals for in-patient services.

Overall, an estimated 5-percent growth is projected for healthcare construction in 2015. For any healthcare construction projects, it’s important to work with a construction company with experience in healthcare who can efficiently and effectively complete a project while avoiding potential pitfalls.

At Cowen Construction, we offer extensive expertise in construction for a variety of industries, including healthcare. View our recent projects in our Project Portfolio and contact us for more information.