Opportunity and Our Current Economic Crisis

Change gives way to opportunity, and our current economic crisis is no exception to that rule. As construction prices fall and rents decline, there might never be a better time for a physician’s practice to move into new modern offices, upgrade existing facilities, or renovate for that new/future piece of medical equipment you have had your eye on.

It is understood that physicians are feeling the stress of declining pay, less patients, and other economic related problems. One way a physician’s practice can cope with the decline is by setting itself apart from the competition with newer state-of-the-art facilities. Right now is the best time to invest in a practice and get the best bang-for-the-buck through recession construction pricing.

Recent experience has seen an approximately 20% – 25% savings on build-out costs as contractors and their subs are tightening their belts and seriously competing with each other for business. This represents an extraordinary construction savings opportunity. Even equipment, suppliers, mechanical, and electrical fixture companies are lowering prices to reduce inventory and stimulate business activity.

However, do not delve blindly into the construction industry by having a recently unemployed home remodeler attempt to construct your offices. In order to achieve the greatest success during your move/growth/construction process, consider the following recommendations:

1. Seek an architect with extensive medical experience who can maximize the efficiency of your offices in the smallest square footage and simultaneously provide a fresh new look.
2. Select a contractor with medical experience. Contractors who have been building residential projects for the past twenty years will not be the best selection to construct your X-Ray or MRI rooms. The cheapest bid might not have the best medical experience, so check bids in order to eliminate your anxiety and stress levels later.
3. Negotiate with your landlord for better rent rates, free month’s rents, or a healthier build-out allowance in order to maximize the available funds for your construction project.
4. Seek prudent financing opportunities without overextending yourself. A good investment will amortize and prove profitable after a few years time.
5. Review energy efficient and green architecture construction to save on energy costs and build a healthier environment for you and your patients.
6. Pay only for work which is already in place. Do not pay for materials stored off-site in case a supplier or sub goes out of business and you no longer have access to the products you have paid for.

The decision to design and construct an office is a big one that requires the support of the entire physician partnership and the guiding hand of a strong leader with vision and confidence for the future. Regardless of our economic times and the healthcare reform debate in Washington, there will always be patients that require treatment in clean, modern, state-of-the-art medical facilities. These facilities, for now and into the future, might as well be yours.