Design-Build: Desperate or Savvy?

Posted on December 9, 2011


If a person looks around at private businesses and their attitude toward the changing healthcare market, they will see companies doing some gutsy things.

For example:  on the provider side, you have Highmark, a health insurer, purchasing an entire hospital system in a metro region to secure a client base and go head-to-head with other ensurers and other healthcare providers in the war for a greater patient base. Or another example: on the employer side, you have Reliable Production Machining & Welding, an average industrial company struggling with healthcare premium costs for employees. They decided it was more cost effective to get into the healthcare business themself by building and running a clinic for their employees than to keep paying double-digit yearly premium increases.

Are these not desperate attempts to ensure survival? Actually, no. These are simply innovative attempts to manage risk and keep a business afloat.

At some point, hospitals will reach an extreme position as well.  They will find the need to get into their buildings months sooner than they have in the past.  This will allow them to see patients several months sooner and rack up millions in revenue. They will vow to stop paying for change orders on items their architect and contractor should have known and acted differently on. Hospitals will want to avoid prolonged exposure to materials and labor inflation, and they will want to work with one company who can delivery all of these benefits.  At this point, the fog will clear and design-build will appear.

Posted in: Design-Build