Healthcare Design - April 2020 - 21

38 percent about the same, and 20 percent fewer.
In total, respondents reported healthcare
revenue in 2019 at $4.6 billion. Of that revenue
reported, 70 percent was tied to programming/planning/architecture, consulting services; 17 percent to construction; and 13 percent to engineering.
Looking ahead, firms reported there were
6,980 projects in progress at the close of 2019,
with 3,514 scheduled for completion this year. In
comparison, there were 5,113 projects reported
as in progress at the close of 2017, with 3,403 on
schedule for completion in 2018.

Total healthcare projects completed
Total healthcare projects completed

46%
46%

39%
39%

15%
15%

About the same
About the same

More
More

Fewer
Fewer

RFPs received
RFPs received

40%
40%

43%
43%

About the same
More
About the
same
Total
healthcare More
projects

17%
17%
Fewer

Fewer
completed
New contracts signed
New contracts
Average
projectsigned
value
Average project value

46%
41%
41%
42%
42%

39%
32%
32%
51%
51%

About the same
About the same
About
About the
the same
same
About the same

More
More
More
Higher
RFPs Higher
received

Average project size
Average project size

15%
27%
27%
7%
7%
Fewer
Fewer
Fewer
Lower
Lower

40%
44%
44%

43%
39%
39%

17%
17%
17%

About the same
About the same
About the same

More
Larger
Larger

Fewer
Smaller
Smaller

other size ranges growing considerably between
2017 and 2019, resulting in greater distribution
of projects across square footages (see chart on
page 24).
Meanwhile, project values saw a nice uptick
in 2019, firms reported, with 51 percent saying
2019 projects were valued higher year over year.
Forty-two percent saw values about the same as
the previous year while only 7 percent reported
a dip. Comparatively, in the 2018 survey, only
36 percent of firms reported higher project values year over year, 49 percent about the same,
and 15 percent lower. And when breaking down
projects across value ranges in 2019, the majority repeated what was seen in the 2018 survey,
SPLASH OF COLOR
with most projects coming in at $10 million or
Of projects completed in 2019, renovations
less; however, this time around, 66 percent of
representedNew
52 percent
and
new
construction
contracts signed
projects were valued at $10 million and under,
48 percent-aNew
subtle
shift signed
in favor of renovations
contracts
compared to 80 percent before, with growth becompared to the 2018 A/E/C Survey, when new
tween surveys noted in each value range above
construction came in at 51 percent and renova32% type saw27%
$10 million.
tions41%
at 49 percent. Project
some move41%
32%
27%
To better understand the drivers behind new
ment
in 2019, as well-hospital
work
was 53 perprojects today, respondents were also asked to
cent of projects completed last year, a jump from
the same
More
Fewer
identify the single greatest client need in 2019. At
42About
percent
in 2017, while
outpatient/ambulaAbout the same
More
Fewer
the top of the list were renovation/modernizatory work fell to 34 percent compared to 2017's
Average project size
tion of existing space (25 percent) and replace41 percent. Skilled
nursing/rehabilitation
projAverage project size
ment of outdated buildings (23 percent), with
ects also dipped in 2019 to 6 percent compared to
expansion of/addition to an existing facility comthe last survey's 13 percent, whereas infrastrucing in third (18 percent). Those three choices also
ture-only
projects
remained
in
the
single
digits.
44%
39%
17%
39%
17%
led results in the 2018 survey. Next, respondents
On44%
average, project
size was about
the same
were asked to choose all other high-ranking
in 2019 as it was in 2018, according to 44 perAbout
same
Larger while 39Smaller
client needs and rank them in order. Top votecent
oftheresponding
firms,
percent reAbout the same New contracts
Larger signed
Smaller
getters here also included repurposing space for
ported
they were larger
and 17 percent
smaller.
new use and renovation work with addition.
Comparing 2019 to 2017, however, highlights a
Respondents were asked to choose the single
noticeable jump. In 2017, 74 percent of projects
greatest goal that clients wished to achieve on
were41%
reported in the32%
5,000 to 19,999-square-foot
27%
new projects in 2019, as well. Here, firms serange, whereas this time around only 35 perlected improving patient experience/satisfaccent of projects fell into that bucket-although
tion (40 percent) and designing spaces for fuit'sAbout
stillthethe
leading size
range. In fact,
that drop
same
More
Fewer
ture flexibility/adaptability (35 percent)-also
resulted in the percentage of projects in all the
Average project size
the top two in 2018, although at 55 percent and
Projects
Projects
Projects
Projects
Projects
Projects
Projects
completed
completed
Projects
completed
Projects
completed
completed
completed
completed
completed
in
in
completed
in
2019
2019
in
2019
in2019
in
2019
by
in
by
2019
in
by
2019
value
in
by
value
2019
by
value
2019
value
by
value
by
range
range
value
by
range
value
by
range
value
range
value
range
range
range
range
23
percent,
respectively.
Among those at the
28%
28%
28%
28%
28%
28%
28%
28%
28%
top of the list for other primary goals were sup28%
porting population health/creating ambulatory
44%
39%
17%
networks, addressing aging building stock, and
improving staff satisfaction.
20%
20%
20%
20%
20%
20%
20%
20%
20%
About18%
the
same
Larger
Smaller
18%
18%
18%
18%
18%
18%
18%
18%
20%
18%

Average project value

13%
13%
13%
13%
13%
13%
13%
13%
13%
13%

42%

51%

8%
8%
8%
8%
8%8%
8%
8%
8%
6%
6%
6%
6%6%
6%
6%
6%
8% 6%

7%

$ $ $ $ $ $ $ $ $
6%

About the same

Higher

Lower

3%
3%
3%
3%
3%3%
3%
3%
3%
3%
3%
3%
3%
3%3%
3%
3%
11%
%
1%
1%
1%
1%1%
1%
1%
1%
33%
%
3%

Less
Less
Less
than
than
Less
Less
than
than
Less
than
Less
than
$500,000
Less
$500,000
than
$500,000
Less
than
$500,000
$500,000
than
-$500,000
- $500,000
- $500,000
- -$500,000
$1M
$1M
-$1M
--$1M
--$1M
- - $1M
- -$1M
$1M
-$10M
$10M
-$1M
$10M
- $10M
--$10M
- - $10M
-$10M
- $10M
$20M
-$20M
$10M
-$20M
-$20M
-$20M
--- $20M
-$20M
- $20M
$50M
-$50M
$20M
-$50M
-$50M
-$50M
-- - $50M
-$50M
- $50M
$100M
-$100M
$50M
$100M
- $100M
- $100M
--- -$100M
$100M
- -$100M
$500M
$500M
$100M
- $500M
- $500M
-$500M
- - -$500M
$500M
- -$500M
More
More
$500M
-More
-than
More
than
-More
than
-More
than
than
More
More
than
More
than
than
than
Less
than
$500,000$1M$10M$20M$50M$100M$500MMore
than$1B
$500,000
$500,000
$500,000
$500,000
$500,000
$500,000
$500,000
$500,000
$999,999
$999,999
$500,000
$999,999
$999,999
$999,999
$999,999
$999,999
$999,999
$9.9M
$999,999
$9.9M
$9.9M
$9.9M
$9.9M
$9.9M
$9.9M
$9.9M
$19.9M
$19.9M
$9.9M
$19.9M
$19.9M
$19.9M
$19.9M
$19.9M
$19.9M
$49.9M
$49.9M
$19.9M
$49.9M
$49.9M
$49.9M
$49.9M
$49.9M
$49.9M
$99.9M
$99.9M
$49.9M
$99.9M
$99.9M
$99.9M
$99.9M
$99.9M
$99.9M
$499.9M
$499.9M
$99.9M
$499.9M
$499.9M
$499.9M
$499.9M
$499.9M
$499.9M
$499.9M
$1B
$1B
$1B$1B
$1B$1B
$1B
$1B
$1B
$1B
$1B
$1B
$1B$1B
$1B
$1B
$1B

$500,000

Year-over-year stats

$999,999

$9.9M

$19.9M

$49.9M

$99.9M

$499.9M

$1B

$1B

Projects completed in 2019 by value range

APRIL 2020

21
Healthcare Design - April 2020

Table of Contents for the Digital Edition of Healthcare Design - April 2020
