News
April 18, 2025

Healthcare Construction Remains Resilient Amid Sector-Wide Slowdown

Caroline Raffetto

While many nonresidential sectors are grappling with economic uncertainty and slower decision-making, healthcare construction appears to be weathering the storm. According to Birmingham, Alabama-based construction firm Robins & Morton, developers in the healthcare space continue to push forward — driven by long-term planning, design flexibility, and resiliency priorities.

That insight comes from Robins & Morton’s 2025 State of Healthcare Construction report, which compiles trends and insights from healthcare executives, architects, and contractors. The report touches on sustainability, evolving design needs, and the growing importance of cybersecurity — all through the lens of construction partnerships.

Derek Gregg, vice president of operations at Robins & Morton, said the momentum in healthcare construction is holding steady because medical facilities must keep up with modernization demands. “Healthcare construction is somewhat unique in that it is more insulated from economic uncertainty than other sectors for a couple of reasons,” Gregg said.

“First, demand for healthcare services remains the same regardless of economic activity. Second, the process of planning healthcare projects, raising or allocating appropriate funding and beginning construction activities often takes place on a longer timeline than other commercial ventures,” he continued. “This means that our clients expect market fluctuations throughout that timeline and make allowances so their projects can continue. Overall, we haven’t seen significant changes in the approach to new projects.”

In fact, the latest federal figures show healthcare construction spending reached $69.78 billion in February 2025 — up 2.1% year over year. Gregg says much of the current strength stems from project owners pulling contractors into planning earlier than ever to manage costs and avoid delays.

Sustainability and Resiliency Top Client Priorities

The report highlights a growing emphasis on sustainability and climate resilience. Gregg notes that client priorities vary, but many are driven by both environmental commitments and the realities of their region.

“For example, Robins & Morton does a significant amount of work in the Southeast and in Florida, hardening and resilience remain top-line issues for healthcare projects,” Gregg said. “We’re also seeing clients opt for more energy-efficient equipment, which often comes with higher upfront costs.”

He added that healthcare owners are becoming more strategic, using tools like life cycle assessments to forecast long-term cost savings and plan around potential policy shifts. “Along with the desire to build healthier spaces, our clients are using more comprehensive data to make informed decisions regarding sustainability.”

Competition Fuels New Design Trends

Design is also playing a central role in how health systems position themselves in the market. Gregg says reforms around Certificate of Need (CON) laws — which determine whether new healthcare facilities can be built — are intensifying competition in some states.

“A significant influential factor in current and future healthcare design is competition,” he said. “Health systems want to be able to promote their facilities’ amenities, technology and convenience to attract and retain staff, as well as patients.”

In response, many are embracing more flexible layouts and advanced tech infrastructure, as part of a broader move to “futureproof” their spaces.

Greater Complexity Demands Collaboration

Gregg emphasized that today’s healthcare projects are more complex than ever, calling for deep collaboration between owners, designers, and builders from the earliest stages.

“Overall, today’s healthcare facilities are more complex than ever and require more interdisciplinary collaboration,” he said. “We only expect this complexity to increase, and it’s not enough to simply build a designed building. By listening to the pulse of the healthcare industry and aligning that insight with macroeconomic knowledge, we can better understand how we can help alleviate operational challenges and pressures for our clients.”

Originally reported by Sebastian Obando in Construction Dive.

News
April 18, 2025

Healthcare Construction Remains Resilient Amid Sector-Wide Slowdown

Caroline Raffetto
Construction Industry
California

While many nonresidential sectors are grappling with economic uncertainty and slower decision-making, healthcare construction appears to be weathering the storm. According to Birmingham, Alabama-based construction firm Robins & Morton, developers in the healthcare space continue to push forward — driven by long-term planning, design flexibility, and resiliency priorities.

That insight comes from Robins & Morton’s 2025 State of Healthcare Construction report, which compiles trends and insights from healthcare executives, architects, and contractors. The report touches on sustainability, evolving design needs, and the growing importance of cybersecurity — all through the lens of construction partnerships.

Derek Gregg, vice president of operations at Robins & Morton, said the momentum in healthcare construction is holding steady because medical facilities must keep up with modernization demands. “Healthcare construction is somewhat unique in that it is more insulated from economic uncertainty than other sectors for a couple of reasons,” Gregg said.

“First, demand for healthcare services remains the same regardless of economic activity. Second, the process of planning healthcare projects, raising or allocating appropriate funding and beginning construction activities often takes place on a longer timeline than other commercial ventures,” he continued. “This means that our clients expect market fluctuations throughout that timeline and make allowances so their projects can continue. Overall, we haven’t seen significant changes in the approach to new projects.”

In fact, the latest federal figures show healthcare construction spending reached $69.78 billion in February 2025 — up 2.1% year over year. Gregg says much of the current strength stems from project owners pulling contractors into planning earlier than ever to manage costs and avoid delays.

Sustainability and Resiliency Top Client Priorities

The report highlights a growing emphasis on sustainability and climate resilience. Gregg notes that client priorities vary, but many are driven by both environmental commitments and the realities of their region.

“For example, Robins & Morton does a significant amount of work in the Southeast and in Florida, hardening and resilience remain top-line issues for healthcare projects,” Gregg said. “We’re also seeing clients opt for more energy-efficient equipment, which often comes with higher upfront costs.”

He added that healthcare owners are becoming more strategic, using tools like life cycle assessments to forecast long-term cost savings and plan around potential policy shifts. “Along with the desire to build healthier spaces, our clients are using more comprehensive data to make informed decisions regarding sustainability.”

Competition Fuels New Design Trends

Design is also playing a central role in how health systems position themselves in the market. Gregg says reforms around Certificate of Need (CON) laws — which determine whether new healthcare facilities can be built — are intensifying competition in some states.

“A significant influential factor in current and future healthcare design is competition,” he said. “Health systems want to be able to promote their facilities’ amenities, technology and convenience to attract and retain staff, as well as patients.”

In response, many are embracing more flexible layouts and advanced tech infrastructure, as part of a broader move to “futureproof” their spaces.

Greater Complexity Demands Collaboration

Gregg emphasized that today’s healthcare projects are more complex than ever, calling for deep collaboration between owners, designers, and builders from the earliest stages.

“Overall, today’s healthcare facilities are more complex than ever and require more interdisciplinary collaboration,” he said. “We only expect this complexity to increase, and it’s not enough to simply build a designed building. By listening to the pulse of the healthcare industry and aligning that insight with macroeconomic knowledge, we can better understand how we can help alleviate operational challenges and pressures for our clients.”

Originally reported by Sebastian Obando in Construction Dive.