Fueled by rising healthcare expenditures and changing population dynamic, the outpatient sector is experiencing strong momentum in mergers and acquisitions. Outpatient facilities are seen as key to expanding services and reaching new patient populations.
In a recent interview with Florida Trend, Mark Faulkner, president and CEO of Baptist Health Care, talked about BHC’s $650-million hospital and 57-acre campus in Pensacola set to open in September.
CHALLENGES: “We broke ground on this project a few weeks after Hurricane Sally hit Pensacola hard in 2020 and also while in the midst of a pandemic. And yet we have remained on our original construction schedule for an opening on Sept. 23, 2023.
It’s been my experience in this project and others we’ve undertaken that challenges such as these bring out the best in people, especially high performers. And I think the challenges we’ve faced during the past two years have made us a better organization and, in a way, helped to re-create ourselves to better serve a rapidly evolving community.”
CHANGES: “Our original plan was to leave the top floor unfinished until our patient growth reached a point where we would need those additional beds. At the time we were projecting a modest annual patient growth of 2.5%. But what we have experienced since then is patient growth far exceeding those projections. We realized we faced the risk of moving into a new hospital facility that would be already very full. Fortunately, we were not too far into the project to make the call to move forward with finishing the construction of the 10th floor that will give us additional general medical surgical beds.”
FUTURE: “We’re working with Pensacola-based Catalyst Healthcare Real Estate to develop a medical office building on our new campus. It would be essentially a master lease where we own the property and Catalyst would construct the building. Catalyst CEO Chad Henderson is surveying the market to see what the future demand is for new office medical space in Pensacola. We don’t know how it’s going to end up looking, whether it’s going to be a larger or smaller project, but we should know pretty soon what his analysis is.”
Source: Florida Trend
As people flock to South Florida, demand is rising for new construction in housing, transportation and healthcare.
But in the face of supply chain challenges, escalating prices and a tight labor market, experts in the field believe the success of new projects hinges more than ever on timely decisions and collaboration.
“There’s been a 180-degree shift over the past few years,” says Operations Manager Johnathan Peavy at Robins & Morton’s Miami office. “In the early days of the pandemic, supplies, material and even labor were readily available. We anticipated some supply chain issues due to the pandemic, but no one anticipated the ‘Texas Freeze,‘ which compounded the supply chain woes. Along with secondary shutdowns to heavy manufacturing markets, these have created a title wave of supply chain issues.”
Staggered factory shutdowns have left lingering backlogs of construction supplies, from electrical components to building materials. The problems are compounded by the ongoing supply chain issues and a very tight construction labor market, with cost escalations increasing budget volatility.
At Robins & Morton, supporting clients in a changing market is a top priority – and that process starts on day one with a commitment to transparency and collaboration.
“We want to be available to help every step of the way; not only in building, but in budgeting, scheduling, procurement and approval,” says Peavy. “Making smart choices about which materials to use and when to order them. Or helping the client plan for volatility in the market – for example, carrying over a percentage of the budget each month to be ready for inflation or price hikes.”
The firm’s collaborative approach serves as an essential strategy when the company faces uniquely challenging projects – such as rebuilding Baptist Health Fishermen’s Community Hospital in Marathon. That same strong communication is key to overcoming market challenges at Robins & Morton’s projects across South Florida, including Jupiter Medical Center’s Surgical Institute Expansion, BHSF Boca Raton Regional Hospital and University of Miami Health System.
“There’s no one-size-fits-all solution,” adds Senior Project Manager Edwige Clark. “It’s about looking at the data you have and trying to spot risks and potential pitfalls before they happen – but the more you can communicate, the more effective all parties can be. We’re navigating this together.”
Those close partnerships help futureproof healthcare facilities. Often, that starts with designs that can significantly reduce the environmental footprint and utility costs. For tropical and coastal environments like South Florida, structures need to withstand humid environments, heavy winds, and potential flooding, and hospitals must remain operational to serve patients during hurricanes or other natural disasters.
“At the end of the day, we’re doing more than meeting parameters. We’re building for people: for healthcare workers, for expecting parents, for folks recovering from illness or injury,” says Clark. “When the construction is finished; it’s in the choices we made that will impact those people for a long time.”
As flexibility in work and transportation allows people to move “where they want to live” and not only “where they need to live,” South Florida is a key destination. An influx of new residents will fuel growth and new developments, which will include healthcare facilities to serve the growing population.
“If so, South Florida will be ready,” says Peavy. “Over the next three to five years, it’s likely the region will continue to grow – and with it, the cycle of new construction. But we’re rising to meet that demand with strong partnerships, new talent and strategies that will help our clients adapt in the years ahead.”
Source: South Florida Hospital News
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