7 Take Aways from Recent Healthcare Design & Construction Surveys

As you may know by now, I love data. That’s why every year, I look forward to the healthcare design and construction survey results from Modern Healthcare and Healthcare Design magazines that are released in the spring.

And even though the results might not be earthshattering, they do provide interesting insights into what’s happening out there.

I was somewhat surprised to learn that despite rising costs and shrinking margins, 62% of firms surveyed by Modern Healthcare report growth, as health systems shift away from billion-dollar hospital expansions and toward targeted projects that improve access, flexibility, and return on investment.

While Healthcare Design’s survey does not specifically track construction growth, 39% of firms completed more projects in 2025 than in the prior year, while 46% reported about the same number of projects. This suggests a generally healthy project pipeline rather than a booming market.

Here are 7 key themes across both surveys:

1. Capital is tighter and decisions are taking longer

Health systems continue to face reimbursement pressure, labor costs, and operating margin challenges. Because of this, many organizations are delaying projects, reducing scope, phasing construction, or scrutinizing investments more carefully before committing capital. Rising construction costs, tariffs, and material price volatility are also adding to the pressure.

2. Renovation is winning over new construction

Rather than building large new hospitals, health systems are increasingly investing in:

• Renovations and modernization
• Infrastructure upgrades
• Facility repositioning
• Adaptive reuse of existing assets

They want to maximize the value of existing facilities while preserving flexibility for future needs.

3. Outpatient care remains a major growth driver

Health systems continue shifting care away from inpatient settings and into:

• Ambulatory care centers
• Freestanding emergency departments
• Medical office buildings
• Outpatient specialty hubs

Projects that support revenue growth and market expansion are receiving priority over purely aesthetic or experiential upgrades.

4. Behavioral health is a bright spot

Behavioral health continues to attract investment as systems respond to growing demand and persistent access gaps. Many respondents to Healthcare Design’s suervey report increased activity in behavioral health and related community-based care environments.

5. Flexibility is becoming a design imperative

With uncertainty around reimbursement, demographics, technology, and care delivery models, health systems are asking architects and designers to create spaces that can adapt over time.

The emphasis is increasingly on:

• Flexible planning
• Modular approaches
• Future-proofing
• Operational efficiency

Health system leaders want buildings that can evolve without requiring major capital reinvestment.

6. Workforce challenges continue to shape projects

Labor shortages remain a significant issue—not only for healthcare providers but also for construction teams.

These shortages are affecting schedules, costs, project delivery, and operational planning. Staff recruitment and retention concerns are increasingly influencing design decisions.

7. Every project must demonstrate value

Perhaps the strongest theme across both surveys is the demand for clear return on investment.

Health systems are increasingly prioritizing projects that can:

• Increase revenue
• Improve operational performance
• Support workforce retention
• Enhance patient access
• Extend the life of existing assets

Design excellence remains important, but it is being evaluated through the lens of business performance and measurable outcomes.

Concluding Thoughts

Moving forward, the health systems that thrive will not necessarily be the ones building the most space. They may be the ones extracting the greatest value from the space they already have.

Likewise, the architects, designers, manufacturers, and consultants who succeed will be those who can clearly connect their solutions to organizational outcomes.

Because in today’s healthcare environment, every square foot, every capital dollar, and every design decision must contribute to a larger strategic objective.

The future belongs not to those who build the most, but to those who build—and renovate—the smartest.

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