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Investment in Health Construction Projects to Rise as Facilities Shift from Volume-based to Value-based Care

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Published on : Aug 18, 2017

Albany, New York, August 18, 2017: Factors such as the rising demand for risk management, increasing incidence of chronic diseases, private-public alliances, and favorable regulations have boosted health construction projects worldwide. Healthcare construction has become a booming industry and is expected to showcase growth at an increased pace through the forthcoming years. The report gauges the growth trajectory of these projects and covers the various economic and social factors enabling growth in health construction projects. 

Considering the increased opportunities exhibited by the sector, investors are keen on finding what makes the health construction projects such lucrative. The report is intended to offer exhaustive information to enable investors have clarity with regards to the investment feasibility in health construction projects. Technological developments witnessed in the last few years have come to the benefit of companies providing health construction solutions. Medical breakthroughs and regulatory changes have had immense impact on a nation’s facilities. Against this backdrop, care providers are gradually transitioning from volume-based care to a more value-based care. 

Construction Intelligence Center (CIC) has recently has tracked the health construction projects worth US$406 bn undertaken around the world. As per CIC, the Americas exhibited health construction projects worth US$138.2 bn. Europe trails the Americas with projects valued at US$116.5 bn. In the coming years health construction projects are expected to pick pace in emerging nations across Asia Pacific and the Middle East and Africa as well. 

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The report provides an in-depth evaluation of CIC projects undertaken in the past couple of years. It highlights the overall project value, estimating the funding by the top ten nations. Besides this, segmentation is carried out based on various parameters to identify the most lucrative pockets with health construction projects. According to the report, the Americas currently account for the dominant 57% of the overall private funding, whereas the MEA holds the largest share of 67% in the overall public funding for health construction projects. 

It is important to note that shifting philosophy with regards to patient-care, especially in the private healthcare structure had a considerable influence on the health construction projects witnessed in the sector. An increasing number of healthcare facilities are no longer focusing on maximum occupancy. Rather nations are putting in efforts to strategically locate small and medium-sized clinics to support populations and ease a patient’s journey to a healthier lifestyle. Facilities are therefore keener on providing impactful care to keep patients out of hospitals and help them resume a healthier living as soon as possible. 

The report gauges similar factors influencing growth of the health construction projects undertaken worldwide. Currently the market players are looking to strengthen their foothold through innovation, collaboration, and value engineering.

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