Press Releases

Healthcare Hits the Reset Button

Philadelphia, PA., March 9, 2023 - Healthcare providers recognize an essential shift in facility design and construction from “cost per square foot” to “value per square foot”: for patients, the healthcare workforce, and communities, according to Deb Sheehan, DPR Construction’s healthcare market strategy leader, who shared an economic outlook for the industry during the March 1 SquareFootage Summit in Philadelphia.

She explored how healthcare providers are confronting today’s financial challenges by looking at key factors affecting market dynamics. Sheehan was joined by Natalie Hagerty, Senior Director of Facilities Planning + Design for the Children’s Hospital of Philadelphia.

Healthcare systems are being challenged by a weakening of physician loyalty, particularly with consumers under age 50, who are wooed by new market entrants. The rise of high deductible health plans is leading to price sensitivity, and consumers are researching to make informed decisions about health providers and care options.

As health organizations assess growth strategies, they must consider payer reimbursement policies and consumer preferences. Additionally, home-based care models, telehealth, and patient engagement tools are becoming more prevalent to meet the demand for access outside the traditional facilities.

“As new market entrants apply retail strategies in outpatient care, hospitals are challenged to reimagine how to deliver care in non-hospital settings as part of their long-term planning,” noted Sheehan. “Integrated solutions that improve convenient access, user experience, and care delivery efficiency are vital to aid health organizations in restoring financial health and viability.”

When considering what this means for healthcare capital projects, flexibility, speed-to-market, and efficiency are the new currency of building design and construction. Organizations are shifting focus to the total cost of ownership, reconciling the larger operational expenses of labor, supplies, and energy costs impacting their budgets.

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