According to recent reports, hospital construction continues to boom across the United States. Healthcare Finance News reports that there are around 1,340 hospital projects under construction or in the planning stage. Meanwhile, Revista, a health care real estate research firm based in Maryland, reports that current hospital construction projects underway are valued at $97 billion.
Experts say the aging baby boomer generation and an influx of cash from the Affordable Care Act are driving the upswing in construction, which has been steadily increasing for several years. New demand for luxury hospital amenities is also behind some of the projects, such as a new upscale facility for Johns Hopkins in Baltimore. Other high-value projects currently underway include the $2 billion expansion of Tisch Hospital in New York City and the $1.5 billion construction of the University of Pennsylvania Hospital.
On the West Coast, California is leading the way with $12 billion in construction projects, much of which is due to code upgrades to meet new earthquake protection regulations. According to experts, it is more cost-effective to rebuild than to retrofit buildings to bring them up to code. To that end, both Lucile Packard Children's Hospital in Palo Alto and Loma Linda University Medical Center are building new facilities valued at more than $1 billion each.
Maryland investors as well as developers that are interested in participating in the hospital construction boom or other real estate transactions may want to obtain the advice of an attorney. Legal counsel could provide assistance when dealing with permit issues, loan transaction documents, environmental regulations, purchase and property management agreements, commercial leases and other legal issues related to commercial real estate.