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

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Escalating costs of construction intensify <strong>the</strong> debate around private rooms<br />

Medicare Payment Adv<strong>is</strong>ory Comm<strong>is</strong>sion (2007) Healthcare<br />

Spending and <strong>the</strong> Medicare Program, June 2007<br />

It has been estimated that <strong>the</strong> cost has r<strong>is</strong>en<br />

to $325 to $350 per square foot for <strong>the</strong><br />

standard community hospital and double that<br />

estimate in California due to earthquake laws.<br />

Five years ago, <strong>the</strong> average cost was only<br />

$180 per square foot. With <strong>the</strong>se r<strong>is</strong>ing<br />

numbers, hospitals costs may double during<br />

<strong>the</strong> 4-5 year span between <strong>the</strong> proposal and<br />

construction completion. (Hoppszallern,<br />

2007).<br />

Every year, <strong>the</strong> cost of construction and building materials<br />

continues to r<strong>is</strong>e with increasing momentum. With a push for<br />

private rooms, nearing 200 square feet per room, hospitals<br />

are forced to spend exponentially more in building/expanding<br />

<strong>the</strong> project to incorporate more private rooms. According to<br />

Turner Construction’s Levine, a building project that<br />

incorporates 100% single rooms ra<strong>the</strong>r than one that<br />

incorporates only 75% single rooms, <strong>is</strong> estimated to cost<br />

7% percent more (Hoppszallern, 2007).<br />

“According to an analys<strong>is</strong> by RSMeans, costs per square<br />

foot are expected to go up about 16 percent nationally<br />

for a two- to three-story hospital and 14 percent for a fourto<br />

eight-story hospital, largely reflecting fluctuations in<br />

building materials commodity prices.” (Carpenter, 2009)<br />

Private rooms require more<br />

square footage: 200 square<br />

foot rooms at $350 per square<br />

foot in 2007 are only<br />

predicted to r<strong>is</strong>e 14-16% each<br />

year!<br />

27

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