Revista Names Top Health Care Projects of 2015
ANNAPOLIS, Md. — Revista, a medical real estate firm headquartered in Annapolis, recently released its list of the top health care projects in 2015. According to Revista, 1,340 projects were started in the past year or are currently in the planning stages. The leading states for health care real estate are California — with $11.8 billion in projects underway — and Texas — with $7.7 billion in projects underway. A nationwide total of $97 billion in projects ranging from new hospitals, expansions and off-campus clinics are currently underway, according to Revista.
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.