The five largest hospital projects underway in 2015 are:

1. Tisch Hospital expansion in New York; $2 billion
2. New hospital tower at the Hospital of the University of Pennsylvania in Philadelphia; $1.5 billion
3. Loma Linda University Medical Center replacement in Loma Linda, Calif.; $1.2 billion
4. Veterans’ Affairs Fitzsimons campus replacement in Aurora, Colo.; $1.1 billion (despite reports the actual cost is closer to $1.7 billion)
5. Lucile Packard Children’s Hospital at Stanford expansion in Palo Alto, Calif.; $1.1 billion

Health Care History & Outlook

In addition to naming the top projects in 2015, Revista also calculated the additional number of people — 15.3 million — who now have health insurance since the implementation of the Affordable Care Act and translated that number into square feet of medical space.

The firm found that in 2013, there was 4.8 square feet of medical office space for every insured person. Today, that number has dwindled to 4.58 square feet for every insured person.

Revista’s findings come after Dodge Data & Analytics’ recent 2016 Construction Outlook report, which found health care construction remained flat this year and predicted a slight 1 percent rise in 2016. Dodge said the industry has been hesitant to make significant capital investments into major construction projects due partly to the "uncertainty that continues to plague the health care market" after the passage of the Affordable Care Act.

However, Dodge — similar to Revista — predicted the industry will soon move past that environment of uncertainty and face the need to serve an expanding elderly population and replace older facilities. Once the industry reaches that point, "health care construction is likely to see stronger increases given the speed with which changes are happening in both the population and the health care industry itself," according to the Dodge report. In addition to the top five projects listed here, Healthcare Finance News listed the top 50 projects from Revista’s data, to see the full list click here.
 

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According to an inaugural report from healthcare real estate data service Revista that was released May 20 during a launch event in Boston, there are 66 health care construction projects in the Northeast alone, and Revista is planning on releasing more market data in the coming months.

“The level of healthcare real estate construction activity seen in the Northeast bodes well for the rest of the country,” Mike Hargrave, one of Revista’s founding principals, said at the Boston event. “Although we don’t have national data yet, we would not be surprised to see similar levels of activity in other parts of the nation.”

Highlights of the report include the following:
• There are a large number of medical facilities in the Northeast, including 473 general acute care hospitals, 4,491 medical office buildings (MOBs) and 2,105 other health care buildings.
• Most medical facilities in the region are affiliated with a health system. Forty-four percent of MOBs are affiliated with a hospital, 36 percent of MOBs are affiliated with a health system and 68 percent of hospitals are affiliated with a health system.
• Construction of health care facilities in the Northeast is going strong. This includes 43 MOB/outpatient facility projects totaling more than 4.35 million square feet with a total value of almost $2.9 billion, and 23 hospital/inpatient projects totaling more than 4.5 million square feet with a total value of more than $5 billion.

By the Numbers: Hospitals Being Built or in Late Planning Stages
• Connecticut – four projects, 1.34 million total square feet, $1.081 billion approximate value

• Massachusetts – seven projects, 641,543 square feet, $555 million

• Maine – two projects, 401,000 total square feet, $287 million

• New York – 10 projects, 2.17 million total square feet, $3.09 billion


By the Numbers: Medical Office Buildings Under Construction or in Late Planning Stages
• Connecticut – nine projects, 708,139 total square feet, $464 million approximate value
 • Massachusetts – 11 projects, 756,263 total square feet, $595 million

• Maine – five projects, 398,700 total square feet, $50 million

• New Hampshire – two projects, 190,974 total square feet, $124 million

• New York – 16 projects, 2.3 million square feet, $1.65 billion


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