the newsletter of tbd consultants - edition 2, 2nd qtr 2006 - Healthcare Special
Printable PDF version
Healthcare has been going through some dramatic transitions in the past couple of decades or more. What are these changes and how are they affecting the design and functioning of healthcare facilties? Click the link below to read the article.
Electronic storage and messaging is taking the world by storm, but how is it affecting the medical community. We look at how hospitals are introducing this technology, and how it is affecting the medical staff and the construction costs.
SB 1953 was put in place to ensure that hospital facilities would still be functional after a major earthquake, but a side effect has been to send a seismic tremor though the healthcare construction market. We look at what SB 1953 is, and how it is affecting the construction budgets for healthcare projects.
Recently hospital construction costs have been increasing dramatically. It has been estimated that bid prices for hospital projects have increased by about 66% in the past two years, over twice as much as general construction projects (which have themselves been increasing far faster than in previous years). What are the driving forces behind these increases?
The construction market generally is very busy at present, but it is notoriously cyclical, so we can be sure that a downturn is somewhere up ahead, although it is hard to say when that might be. But the hospital work has its own independent driving force (SB 1953) that is going to keep this market busy even if and when the general construction market falters. Right now though, hospital work is laboring under its own forces and the general construction market conditions, and hospital bid prices are naturally reflecting the combined pressure.
The pie chart above (click the chart for a larger image) shows the approximate proportions of the Hard Costs (the construction contract price) and Soft Costs (design fees, supervision costs, fees and charges, and other project costs). Obviously, the actual percentages will vary project to project, but the chart above is given as a guide.
Design consultant: Katie Levine of Vallance, Inc.