Cost to build hospital
The cost of building a hospital is staggering, but what is even more worrisome is the fact that it seems to be climbing higher and higher. If you have to pay, who has the right to ask for what? With all the crazy numbers being thrown around about construction…
Cost to build hospital
A report from the National Association of Home Builders (NAHB) shows that the cost to build a hospital is rising.
The average cost of constructing a hospital has increased by more than $30 million since 2011, according to the NAHB. That’s a 45 percent increase over six years.
The average price per square foot for new hospital construction has risen from $209 in 2011 to $234 in 2016, an increase of $25 per square foot over six years.
While these increases are significant, they’re not as high as what some other industries have seen in recent years. For example, the cost per square foot for new single-family home construction increased from $91 in 2011 to $153 in 2016 — an increase of nearly 90 percent over six years. The average price per square foot for office buildings rose from $139 in 2011 to $178 today — an increase of 42 percent over six years.
How Much Does it Cost to Build a Hospital?
The cost to build a hospital depends on many factors, including the size of the hospital, location and architectural style. Smaller hospitals can be built for less than $100 million, while larger facilities can cost more than $1 billion. The average cost per square foot of construction for a new hospital is about $110,000.
Some of the factors that affect the final cost include:
Size – The size of the building has a big impact on construction costs. Smaller hospitals are generally less expensive to build than larger ones. A community hospital might cost between $50 million and $200 million while regional and tertiary care hospitals may cost between $100 million and $1 billion.
Location – If a hospital is located in an urban area like Chicago or New York City, its construction costs are likely to be higher than if it were built in rural Montana or North Dakota. The same goes for other factors like local labor costs and materials prices (e.g., concrete).
Architectural Style – Hospitals can be designed with different architectural styles ranging from modernist designs like Apple’s new campus in Cupertino (pictured) to more traditional styles.