Uncertainty is probably the best way to describe the atmosphere in Florida’s Healthcare Industry from the perspective of both contractors and owners. With the instability existing in the overall economy, and the deep unknown of the impact of healthcare reform, a significant amount of capital improvements have either been placed on hold, or cancelled altogether. Whether the result of institutions wanting to maintain precious cash reserves, redirected spending towards strategic initiatives, or a result of the overall finance market, the availability of funding for bricks and mortar has diminished. Coupled with reduced philanthropic gifts resulting from the economic malaise, it is somewhat of the perfect storm.As a contractor, the largest hurdle we face when opportunities present themselves is the ability to provide necessary “value” to the client because of the hyper competitive environment we face, and the acceptance of the lowest bid and or lowest fee. This obviously can be construed as a complaint, or perhaps biased from our end. Yet as I listened to a seasoned professional in the healthcare industry speak recently from both an owner’s and financial market perspective, the contractor’s fee (along with the respective design team) is such a nominal percentage of the overall capital program, that “value” is lost in the process. Efficiency and “function over form” must serve as the basis of healthcare design and construction moving forward.
Innovation and consolidation are probably the means to the successful end we are all looking for. But innovation does not necessarily mean “technologically advanced”, but a new way of collaborating and thinking to get the most “bang for the buck” in healthcare facilities and continue to provide, as a team, quality healthcare necessary for our patients.
