By Healthcare Facilities Today

The market for healthcare construction is holding steady, but firms still worry about uncertainty in the field, according to an article in the July issue of Healthcare Design. 

The magazine surveyed more than 90 architectural/engineering and construction firms about their work in 2012, and learned that 47% of firms signed more contracts than in 2011, while only about 10% signed fewer. Value of the work remained about the same, however, at $98 million per responding firm versus $100 million per responding firm in 2011. 

Requests for proposals rose from 119 per firm in 2011 to 130 per firm in 2012, and projects underway rose from 82 to 120. Small-scale projects dominate those figures; 34% of all projects are 5,000 square feet or less, followed by projects of 5,000 to 20,000 square feet at 29%. New construction represents 53% of projects, a number that has been declining for several years. 

The trends toward ambulatory care and specialty hospitals showed up in the results: 79% of respondents did work in ambulatory treatment centers, and 84% worked on specialty hospitals such as facilities for children, cancer, or women and infants. However, 90% of firms also worked on acute care hospitals. 

Respondents noted that uncertainty about healthcare reform has led to uncertainty about revenue among hospitals, which spills over into capital projects. Also, competition among architectural and engineering firms seems to be rising; one respondent reported that big firms are now pursuing smaller projects than they used to, driving firms at all levels to look farther down the chain and putting more pressure on margins. 

But some firms see opportunity in the new healthcare landscape. Offering their expertise in designing facilities that can create better quality and efficiency may lead to more work in the near future. 

Read the article.