Healthcare Design - April 2018 - 34

experience and future flexibility-defined client goals

Percentage
Percentage
Percentage of firms that identified the
for projects in the past four years, with all other opof firms that
firms that
Most common client
needs
following as the most common client of
need
tions
(supporting population health, addressing agidentifi
ed
the
identifi
ed
the
reported in 2017 vs. 2015
that drove projects in 2017
ing building stock, rebranding) generally falling to the
following
following as
as the most
other highsingle digits.
Consolidation
Consolidation
common
client
ranking client
of existing
of existing
buildings/services
need that
needs that
buildings/services
Percentage of firms that identified the F R O M T H E S O U R C E S
drove projects
drove projects
Other high-ranking
needs
following as the other high-ranking
2015 2017
Although
operating client
in a still-uncertain
financial cliin 2017
in 2017
client needs that drove projects1%
in 20170% reported in 2017 vs. 2015

0%

Renovation/
modernization
of existing space

26%
Expansion of
existing facility

22%
Replacement
of outdated
buildings

18%
Repurposing
existing space
for new use

16%
Addition of new
outpatient
facilities

14%
Upgrading IT/
infrastructure

3%
Changes to
facility/exterior/
grounds

1%

mate, providers aren't holding back from pursuing necbuilding
projects that answer the needs and goals
Changes essary
to
Changes to
Renovation/
outlined above.
Yet despite the positive trend of demand
facility/exterior/
modernization facility/exterior/
groundsfor design andgrounds
of existing space
construction services, market conditions
2015 2017
are dicey, fueled
escalating construction costs due to
2015 by2017
0%
1%
15% and9%
labor shortages
rising materials prices. The result,
respondents shared, is that clients frequently end up
Upgrading IT/
Expansion of
Upgrading
IT/match a project's price tag.
with budgets
that don't
infrastructure
existing facility
infrastructure
This reality is escalating client requests for lower
2015 2017
2015 many
2017are struggling with in an environfees-something
0%
3%
21%
27% alone is pushing the issue even
ment where
competition
anticipated that as larger national arAddition of more.
new "It is widely
Repurposing
Consolidation
outpatient
chitectural firms
acquire smaller local firms to establish
existing space
of existing
facilities
for new use
a footholdbuildings/services
in markets, a drive toward more competition
2015 2017
for design 2015
services2017
may continue increasing pressure
22% 14%
43% says
34%Jennifer Burkholder, healthcare
on fee structures,"
market sector
manager at Page (Dallas). In fact, pressure
Repurposing
Replacement
Addition of new
existing space
to lower feesofwas
cited as the top challenge firms faced
outdated
outpatient
for new use
buildings jumping from 21 percent in 2015,
facilities
in 2017 at 32 percent,
2015 2017
when it was2015
also the2017
top-reported challenge.
19% 16%
34%
38% to manage expectations for
Firms are
also struggling
shorter schedules
providers respond to their own
Replacement
Addition ofas
new
Replacement
of outdated
outpatient with 27 percent reporting it as
competitive landscape,
of outdated
buildings
facilities
buildings
another high-ranking
issue last year. "Continued con2015 2017
2015
2017 systems across regions and
solidation of healthcare
12% 18%
40% has46%
into rural areas
the effect of increasing capabilities
but it tightens the speed to market deRepurposing
Expansionof
of providers,
Consolidation
existing
space Burkholder says.
existing facility
of existing
mands for new
projects,"
for new use
buildings/services
Talent acquisition
was another challenge firms con2015 2017
2015 2017
tinued to grapple
with in 2017, cited by 23 percent of
9% 22%
54%
49%
respondents
as their
top challenge and by 40 percent
Renovation/
as another high-ranking challenge. In addition to the
Expansion of
Upgrading IT/
modernization
ongoing skilled
trades
labor shortage plaguing the conexisting
facility
infrastructure
of existing space
struction field, architecture/engineering firms also re2015 2017
2015
2017to maintain appropriate staffing
port they're
struggling
37% 26%
58%
60%
to keep up with client demand and attract new design
talent in thisRenovation/
competitive environment.
Changes to
modernization
facility/exterior/
Having the
appropriate talent on staff is just one of
of existing space
grounds
the differentiating factors firms reported will be necessary to have2015
in this 2017
business climate, as companies work
54%
62%to deliver more value to clients
to position themselves
by advising them on healthcare trends and the models of care delivery that support them. "Trends driving
change in care delivery include a large array of strategic
and planning initiatives aimed at two main objectives:
lower cost and better outcomes. Successful strategic
and facility solutions will target achieving both," says
Anthony Roesch, vice president, director, healthcare

62%

60%

49%

46%

38%

34%

27%
9%

34

APRIL 2018

HCDMAGAZINE.COM

Percentage
Percentage
of firms that
of firms that
identified the
identified the
following as the
following
single
greatest
Percentage
of firms
that identified the as otherSingle greatest
challenge
they greatest high-ranking
following
as the single
challenges firms reported
of firms that
identified
the
facedthey
in 2017
challenge
faced Percentage
in 2017 challenges
in
2015
vs. 2017
they
following
as other
high-ranking
faced
in 2017
Pressure to
lower fees

32%
Talent
acquisition

23%
More
competition

10%
Shorter
construction
schedules

8%
Diversifying across
healthcare
building types

7%
Increase in
projects

7%
Achieving client
buy-in; managing
end user input

3%
Decrease in
projects

3%
Marketing/
branding

3%
Understanding
healthcare reform
challenges

3%
Entering the senior
living/long-term
care market

1%

challenges they faced
in 2017
Entering
the senior
living/long-term
care market
Pressure to
lower fees 2015 2017

0%

1%

44%ongoing
Understanding
challenges

tied to healthcare
Talent
acquisition 2015 2017

40%

5%

3%

Marketing/
branding
Shorter
construction2015 2017
schedules

35%

0%

3%

Decrease in
projects

More
competition 2015

9%

2017

3%

owner/
27%Achieving
client buy-in and

managing...
Achieving client
buy-in; managing
2015 2017
end user input

27%

0%

3%

Increase in
projects
Understanding
healthcare reform
2015 2017
challenges

9%

7%

across
22%Diversifying
healthcare

building types
Diversifying across
healthcare 2015 2017
building types

20%

1%

Shorter
construction
schedules

Utilizing nontraditional project
2015
delivery methods

17%

15%

2017

23% 23%
Pressure to
lower fees

2017

21% 32%

Increase in
projects

13%
Entering the senior
living/long-term
care market

10%

2017

Talent
acquisition

Decrease in
projects 2015

14%

8%

17% 10%

Sourcing
right materials2015
at
right price

15%

2017

More
competition

Marketing/
branding 2015

17%

7%
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Healthcare Design - April 2018

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