Industry officials report that 2016 could be one of the biggest years ever for health care technology and construction. That trend will likely continue and escalate even more in the near future.
Patients have become accustomed to state-of-the-art technology, the latest medical equipment and impressive hospital facilities. Most patients won’t settle for anything less and that is driving lots of demand as hospital systems strive to flourish in a very competitive marketplace. There are a few problems, though, and ones that are not easily solved.
For starters, 40-year-old public hospitals were not designed to incorporate some of the new technology. And, CT scanning equipment, MRI technology and robust computer systems that can handle huge amounts of health care data are expensive and require special rooms. With a growing population nationwide, patient rooms are rarely adequate, especially as most patients request private rooms.
Other issues arise because decades-old public hospitals are also not always located near transportation hubs which make access difficult for patients, families and employees. Many hospital systems are launching major renovations or completely new construction to add space or, in some cases, to become more energy efficient. Funding becomes an issue and some states are turning to public-private partnerships (P3s) because of the attractiveness of private capital.
State funding, coupled with donor contributions, also can make new construction possible. Earlier this year, The University of Texas Medical Branch (UTMB) at Galveston opened its new $438 million Jennie Sealy Hospital. The hospital features more than 300 patient beds and 20 state-of-the-art operating suites with large patient rooms designed “for the hospital of tomorrow.” The new facility also allows for future needs with more than 110,000 square feet of shell space that can be used for expansion on one floor.
The John Sealy Hospital, the flagship hospital of the UTMB teaching campus, has also made plans for a second major $135 million modernization project. This facility is more than 40 years old and suffered serious damages as a result of Hurricane Ike in 2008. Hospital officials will address modernization of patient rooms to conform to “patient-centered models of care.” The second phase project will also include infrastructure that takes future medical trends and emerging technology into consideration as areas are built out. In total, 220,000 gross square feet of space will be renovated. The project is expected to be completed in 2020.
In Fort Worth, Tarrant County has been considering a bond issue to add approximately 740,000 square feet of space and more than 150 new patient beds to John Peter Smith Hospital, the county’s only public hospital. County and hospital officials last year considered asking voters to approve a bond issue of more than $800 million to build a 10-story patient tower and five-story psychiatric tower. That project is still under consideration as officials work to ensure that they can put a bond package on the ballot that voters will approve.
Elsewhere in the U.S., public hospitals are announcing new hospital projects on a weekly basis. Trustees for the Jackson Health System, Miami-Dade County’s public hospital network, approved almost $68 million in contracts that will result in the construction of new buildings and renovation of existing facilities.
This summer, a $230 million expansion of the Salem Hospital in Salem, Mass., was approved and a new three-story building will be built. The facility is expected to be completed in 2019. In Smith Center, Kan., between $25 million and $30 million is expected to be spent on a replacement for the Smith County Memorial Hospital. The building will include 60,000 square feet and it has a completion date set for 2018.
The trend is set and new health care facilities, with the latest technology, adequate private rooms, easy access and inviting ambiances are in high demand. That’s good news for communities because the projects result in job creation, economic stimulus and attractive opportunities for private-sector firms to collaborate with public entities.
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