Tracking a Dozen Hospital Developments Bigger Than $300M

Healthcare-related development is booming. According to Dodge Research & Analytics, construction on healthcare facilities climbed 29% in December 2017 over the previous year, driven by some very large projects including a $300-million addition to a medical center in Fort Myers, FL, a $150-million new hospital tower in Leesburg, VA, and a $109-million addition to a hospital in Cherry Hill, NJ.

“We are seeing healthcare systems and providers embark on large expansion or new development projects due to a strong economy, a still-relatively-low cost of capital, aging Baby Boomers, and the growth of the insured population due to the ACA,” said Steve Higgs, senior managing director, healthcare, for CBRE. “Furthermore, the consumerization of healthcare has led to development in locations that are more convenient for patients and to specialty projects for niche medical areas such as heart care.”

Here are 12 hospital projects/developments with a price tag over $300 million:

1. A $500-million expansion project is underway at Poughkeepsie, NY-based Vassar Brothers Medical Center (pictured above).

2. As part of a planned $1 billion transformation project, St. Louis-based BJC Healthcare unveiled its 12-story inpatient tower at St. Louis-based Barnes-Jewish Hospital, and an expansion of St. Louis Children’s Hospital.

3. Provo-based Utah Valley Hospital completed construction on a nine-story tower, which is part of the hospital’s $430 million renovation project.

4. Cleveland-based MetroHealth released details of its $945.7 million transformation plan for its main campus.

5. Asheville, NC-based Mission Hospital is making progress on a $400 million, 12-story surgery tower that will house more than 400 beds, 220 of which are single rooms.

6. Children’s Hospital of New Orleans will construct a 50-bed Child and Adolescent Behavioral Health Center. as part of its $300 million systemwide expansion and renovation project.

7. El Camino Hospital in Mountain View, CA is investing $398 million in a multipart construction project to upgrade its campus.

8. Charleston-based Medical University of South Carolina is filing a certificate-of-need application with the South Carolina Department of Health and Environmental Control for the development of a new $325 million hospital

9. Clearwater, FL-based BayCare Health System will invest $308 million to expand three of its existing hospitals.

10. Philadelphia-based University of Pennsylvania Health System released updates on a $1.5-billon patient tower project

11. Palo Alto, CA-based Lucile Packard Children’s Hospital Stanford opened its new $1.2 billion hospital, which will now serve as its flagship facility.

12. McLaren Greater Lansing (MI) is planning to construct a $450 million replacement hospital adjacent to East Lansing-based Michigan State University.

For questions, comments or concerns, please contact Jennifer Duell Popovec