The Changing Landscape of Healthcare Construction

The Changing Landscape of Healthcare Construction Blog

It’s no secret that the COVID-19 Pandemic has had a huge impact on the healthcare industry. The healthcare construction industry is changing rapidly and Hallsta is ready to grow, adapt, and help tackle any project that comes our way. This changing landscape means different project scopes, timelines, budgets, and more. Here at Hallsta, we’re staying on top of the trends to anticipate changes in the healthcare design industry. The 2022 Healthcare Design Survey by Jennifer Kovacs Silvis sheds light on recent changes from RFPs received, project size, project type, and the biggest challenges firms faced in 2021.

When polled regarding the types of projects completed, “60% were renovations versus 40% new construction (Silvis, 2022).” There has been a noticeable decrease in new construction projects, from 48% in 2019 to just 40% in 2021. This keeps in line with other survey findings that the most common client goal was the renovation or modernization of existing spaces and expanding/additions to an existing facility as opposed to focusing on new construction projects.’

In addition to focusing on expansion and renovation, the majority of projects have been in the smallest category of square footage, “…55% fell into the smallest size range of 5,000-19,999 ft (Silvis, 2022).” Although smaller in size, project values have increased or stayed level with previous years. Additionally, RFPs received in 2021 soared over 2019 and 2020 findings, with “…60% of firms reporting receiving more year over year (Silvis, 2022) …” and more than “52% of firms reporting more contracts signed (Silvis, 2022).”

The most common client goal for 2021 was achieving future flexibility/adaptability. The healthcare design industry is dedicated to expanding and creating modern facilities to adapt to new needs created by the pandemic. Another impact is that “…34% of firms state talent acquisition as their biggest challenge, followed by labor shortages and cost escalation (Silvis, 2022).” The COVID-19 Pandemic created a string of supply chain issues and labor shortages, and those issues still linger today.

The consensus is that business is booming; with that comes new pros and cons. Many areas require specialty spaces, which creates an exciting area for growth with new, significant projects to help prepare the healthcare industry for an unpredictable future. Hallsta is prepared to tackle any challenges accompanied by this changing landscape. We provide expertise in project management, licensing, activation, master planning, OSHPD strategy and inspection. We’re here to partner with you and your team every step of the way, whatever the project may be. Contact us today and we’ll help bring your plans to fruition!

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