REDWOOD CITY, Calif., Nov. 19, 2024 – According to the latest Healthcare Insights report from DPR Construction, prefabrication and modular construction strategies can significantly reduce the financial and scheduling challenges of capital-build projects for healthcare systems. The report highlights how prefabrication can improve cash flow by speeding up the time to market, which can lead to earlier revenue recognition and potential tax benefits through asset depreciation.

“The productization of the built environment and the shift from field construction to field assembly offers greater certainty regarding scope, cost, quality, and schedule for all involved parties,” said Robert Meyer, a DPR healthcare strategist. “Prefabrication allows for parallel workstreams, enabling prefabricated items to be produced simultaneously with other on-site activities, like building structure, which accelerates project completion.”

Healthcare facilities are particularly suited for prefabrication and modular solutions due to their complex systems and repetitive elements such as inpatient rooms or exam areas. This approach can reduce exposure to supply chain disruptions, particularly when large-scale, repeatable installations are involved.

Implementing prefabrication across multiple projects offers additional benefits, including cost reductions and enhanced revenue recognition, while also helping healthcare providers care for more patients sooner. Repetitive designs not only streamline construction but also align with healthcare systems’ goals of improving staff efficiency and patient safety.

“The value of prefabrication extends beyond large-scale, repeatable building components,” Meyer added. “Even a single prefabricated element, like a modular electrical or technology room, can positively impact the project’s critical path.”

DPR’s Healthcare Insights series addresses key issues facing healthcare providers in the intersection of care and construction. For deeper insights, DPR’s Constructing With Care podcast explores these topics further, featuring perspectives from other industry leaders.