Stories

Healthcare Market Trends Q4 2025

by Hamilton Espinosa and Sean Ashcroft 3 minute read

From Pressure to Possibilities: Aligning Capital, Care, and Technology in 2026.

A reception desk in a healthcare lobby with workers conversing

As 2026 approaches, the healthcare industry is converging at a unique crossroads of policy, capital, technology and care delivery. Financial strain, policy shifts, and evolving care models are creating uncertainty for healthcare leaders. Systems of all sizes are being asked to deliver more with fewer resources—stretching capital plans, responding to new legislation, and preparing facilities for rapid advances in clinical and technological innovations. Meanwhile, population growth, outpatient care, and digital health innovation continue to open new paths forward. In this environment, our role is to provide clarity and solutions that help you move forward with confidence.

Market Trend Policy Change and Financial Realities

The One Big Beautiful Bill Act (OBBBA) includes the most impactful healthcare legislation since the passage of the Affordable Care Act (ACA) over 15 years ago. Medicare and Medicaid cuts could shrink provider margins by as much as 18% over the next five years. At the same time, rising insurance premiums are heightening the risk of uncompensated care, while hospital credit downgrades outpace upgrades nearly three to one—underscoring mounting financial strain.

Health systems strategies:		How we can help:
Reforecasting capital plans to reflect new reimbursement realities Reprioritizing portfolios Accelerating asset optimization Revisiting bond ratings and liquidity strategies		Providing early preconstruction services for enhanced cost visibility, transparency and value propositions Deploying our Specialized Services Group (SSG) to fill gaps and add value under constrained conditions Adopting prefabrication and self-perform capabilities to accelerate schedules and reduce risk

Market Trend Demographic Shifts, Clinical Impacts

An aging population and population growth, particularly across the Southeast and Central U.S., are fueling demand for medical services, even as care rapidly shifts to outpatient settings. Although inpatient volumes are projected to remain relatively flat over the next five years, both acuity and lengths of stays are growing. At the same time, delivering care in lower-cost settings is helping providers optimize operating margins.

Health systems strategies:		How we can help:
Right-sizing inpatient facilities and expanding ambulatory capacity Achieving rapid speed to market to activate patient market share and resulting higher margin revenue Approaching large capital projects with a developer mindset		Positioning resources and expertise toward complex outpatient and specialty projects Offering repeatable templated or prototype solutions and leaner overhead structures to deliver faster and more cost-effectively Assisting in connections with developers and third-party investors on ambulatory care centers and medical office buildings to unlock capital flexibility

Market Trend Environmental Risks and Considerations

Inflation, supply chain instability, and skilled labor shortages continue to affect the industry. The rollback of federal clean energy incentives under OBBBA makes sustainability investments harder to justify, slowing progress towards carbon and energy goals. At the same time, mega-projects exceeding $1B stretch already limited labor pools and specialized expertise.

Health systems strategies:		How we can help:
Revisiting contingency planning for inflation, material delays, and labor shortfalls Balancing resiliency, sustainability, and quality outcomes		Applying modular and prefabrication to bring certainty to schedules, reduce material waste, and optimize skilled labor availability Providing advisory support in preconstruction, master planning, and validation studies to help you adapt to changing conditions Integrating sustainability, resiliency, and quality while maintaining affordability

Market Trend Smarter Tech, Smarter Care

Healthcare’s digital transformation continues to accelerate. Over 63% of healthcare systems are now investing in AI, with adoption projected to grow 37% annually through 2030. Emerging technologies – from generative AI, edge computing, Internet of Medical Things (IoMT), and 5G – are reshaping care delivery and facility design.

Health systems strategies:		How we can help:
Integrating digital investments with capital strategy Designing “smart-ready” facilities to future-proof physical assets		Engaging early with IT teams to align capital planning with digital strategies Collaborating with technology partners to anticipate rapid changes Building AI literacy within our teams to ensure facilities are designed with AI-ready infrastructure and integrated digital systems

Read and Listen!

Healthcare Insights is a series from DPR Construction’s healthcare core market team designed to consider how new pressures on the market will transform the delivery of care.

Focusing on rapidly addressing today’s environment, our teams advance value to health care providers through strategic assessment, program and cost validation, and informing capital investments in real estate and technology—enabling strategic decisions much earlier in the delivery cycle.

Looking for more market insights? Take a look at our full market conditions report of Q4 2025. Or take the full report with you by downloading the PDF.

Photo: Kyle Jeffers