The Patient Room: what is the ideal solution? - Cornell University

Failing economy puts restriction on construction
With the US economy struggling throughout the past five years, the unbridled building boom in healthcare is experiencing
constraint, making decisions in regards to resource allocation extremely critical. In addition, the costs of healthcare
expansion are simultaneously rising, exacerbating the restriction on spending.
“The cost of building a standard community
hospital, he notes, has climbed to $325 to $350
per square foot--and twice that in California
because of earthquake laws--from $250 to $300 two
years ago and just $180 per square foot five years
ago when the current boom was beginning. That
means hospitals could see their costs almost double
in the four or five years it takes to get a project from
the drawing board to completion” (Hoppszallern,
2007).
“Interest rates are rising from historic lows,
and reimbursement rates for patient care are
in question, especially given the Bush
administration's proposed cuts to
Medicare and Medicaid.
Commodity prices have soared,
labor costs are increasing, and contractors
are so busy in some parts of the country that
they've upped their charges in order to take
on new projects” (Hoppszallern, 2007).
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