2025 Top Hospital Construction Trends
Hospital design and construction continue to evolve to address emerging challenges and leverage new opportunities. Below are the top trends that our Turner healthcare experts observe shaping the future of healthcare facilities.
1. HOSPITAL CONSOLIDATION AND EXPANSION
The trend of hospital mergers is expected to continue at an elevated rate, as providers look to consolidation in order to leverage economies of scale and establish local market dominance. This allows for better leverage when negotiating with insurance companies and suppliers, along with a more efficient delivery of care. This consolidation has resulted in numerous mega construction projects in the U.S., with over two dozen active projects exceeding $1 billion.
2. CONTINUED ADAPTIVE REUSE OF RETAIL SPACES
Along with the decline of traditional retail, hospitals continue to repurpose vacant malls and big-box stores into medical facilities. This strategy leverages existing infrastructure, such as core and shell building, parking, and utilities, reducing construction costs by up to 35% and accelerating project completion.
3. PRIVATE EQUITY INVESTMENT
Private equity investment is projected to slightly decrease as hospital profits continue to face headwinds. However, expect to see continued significant investment in free-standing EDs and Behavioral Health Facilities.
4. RESILIENT INFRASTRUCTURE
In response to increasing extreme weather events, hospitals are enhancing their resilient features. This includes designing facilities to withstand wind loads exceeding 150 mph and planning for 1,000-year flood elevations, even in non-coastal areas. In fire-prone regions, establishing 100-yard non-vegetation zones around hospitals has become standard practice.
5. SUSTAINABILITY INITIATIVES
Hospitals are committing to significant carbon footprint reductions. As of November 2024, 960 hospitals have signed the Health Sector Climate Pledge, aiming to cut emissions by 50% by 2030 and achieve net-zero by 2050. Implementing this plan results in introducing construction elements such as 100% electric building, geothermal systems, photovoltaic panels, high-efficiency HVAC systems, and high-efficiency exterior skin.
6. ALTERNATIVE ENERGY FINANCING
To reduce capital expenditures, hospitals are partnering with third parties to develop Central Energy Plants. These partners build and operate the plants, supplying utilities like chilled water and emergency power at pre-negotiated rates, reducing capital expenditures. For example, a major medical university sold its energy infrastructure to a third party for more than $1 billion, freeing up capital for other investments.
7. ARTIFICIAL INTELLIGENCE (AI) INTEGRATION
AI is being integrated into various aspects of healthcare, from patient monitoring systems to diagnostic equipment. For instance, AI algorithms enable 1-Tesla MRI machines to produce images with accuracy comparable to 3-Tesla machines, enhancing diagnostic capabilities.
8. AUTOMATION AND ROBOTICS
Facing labor shortages and rising costs, healthcare facilities are adopting automation to increase efficiency. The goal is to reduce FTEs per staffed bed and utilize automated guided vehicles and robotic systems for tasks including logistics, pharmacy, and patient monitoring, to name a few.
9. PREFABRICATION AND MODULAR CONSTRUCTION
While prefabrication and modular construction are not new processes in hospital construction, it has been gaining more traction recently due to the increasing labor shortage. A prefabrication approach accelerates project timelines, reduces labor costs, and addresses workforce shortages, enabling faster and safer builds of healthcare construction projects.
10. ADVANCED CONSTRUCTION TECHNOLOGIES
Construction firms are adopting advanced technologies like 3D and 4D modeling, drones for exterior inspections, robots, and automated systems to enhance project quality and efficiency. These innovations streamline processes, reduce costs, and improve overall construction outcomes.