Healthcare Construction Remains Resilient Amid Economic Uncertainty

While economic uncertainty has slowed momentum across many nonresidential construction sectors, healthcare projects continue to push forward.

According to Robins & Morton, a construction firm based in Birmingham, Alabama, developers in the healthcare space have yet to show signs of pulling back.

This insight comes from the company’s 2025 State of Healthcare Construction report, which features perspectives from healthcare executives, architects, and contractors. The report examines key topics such as sustainability, design innovation, and cybersecurity—each considered through the lens of how construction partners contribute to project success.

Despite broader industry challenges, the pace of healthcare construction has remained relatively steady. One reason is the ongoing need for facility modernization to stay competitive, said Derek Gregg, vice president of operations at Robins & Morton. As of February 2025, spending on healthcare construction reached $69.78 billion, marking a 2.1% increase over the previous year.

Additionally, developers are increasingly engaging contractors earlier in the project lifecycle to manage escalating costs, reduce risk, and ensure projects stay on schedule.

In an interview with Construction Dive, Gregg discusses shifting design priorities, evolving spending habits, and what lies ahead for contractors navigating the healthcare construction landscape in 2025.

CONSTRUCTION DIVE: Many construction firms are reporting slower decision-making in the current environment. What did your team observe specifically regarding healthcare construction activity?

DEREK GREGG: Healthcare construction is somewhat unique in that it is more insulated from economic uncertainty than other sectors for a couple of reasons. 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. 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.

CONSTRUCTION DIVE: The report notes growing interest in sustainability and resiliency. What are healthcare clients prioritizing in their project specs?

DEREK GREGG: It’s difficult to generalize, as every healthcare system has different priorities, ranging from corporate sustainability commitments to the geographic location of their real estate. 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. We’re also seeing clients opt for more energy-efficient equipment, which often comes with higher upfront costs. By using tools such as life cycle assessments, they can more accurately predict long-term cost savings and get ahead of potential regulatory changes. Along with the desire to build healthier spaces, our clients are using more comprehensive data to make informed decisions regarding sustainability.

CONSTRUCTION DIVE: What design shifts do you see influencing the healthcare construction space?

DEREK GREGG: A significant influential factor in current and future healthcare design is competition. We’re seeing a trend in Certificate of Need reform. Certificate of Need laws regulate healthcare construction and in states where the laws are active, healthcare systems or practices must apply for authorization to build new healthcare facilities. When approved, there’s an increase in competition among health systems for patients and talent. Health systems want to be able to promote their facilities’ amenities, technology and convenience to attract and retain staff, as well as patients. Additionally, we’ll see a continued emphasis on futureproofing with flexible space and high-capacity tech infrastructure.

CONSTRUCTION DIVE: What are some other crucial trends you think are important to mention around healthcare construction?

Overall, today’s healthcare facilities are more complex than ever and require more interdisciplinary collaboration. 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.

Source: ConstructionDIVE