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Construction activity in U.S. hospitals.

Gloria J Bazzoli1, Anneliese Gerland, Jessica May

  • 1Department of Health Administration, Virginia Commonwealth University, Richmond, USA. gbazzoli@vcu.edu

Health Affairs (Project Hope)
|May 11, 2006
PubMed
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Hospital construction is rising, with activities including new general and specialty services, facility replacements, and capacity expansions. Some efforts respond to community needs, while others suggest a competitive "medical arms race," potentially leading to costly excess capacity.

Area of Science:

  • Health Services Research
  • Hospital Administration
  • Healthcare Policy

Background:

  • Increasing hospital construction activity necessitates understanding its drivers and impacts.
  • Limited data exists on the specific types of hospital capacity being affected by construction.
  • Motivations behind hospital construction range from community needs to competitive market responses.

Purpose of the Study:

  • To identify and categorize types of hospital construction and expansion activities.
  • To investigate the motivations driving these hospital development efforts.
  • To assess the potential consequences of current hospital construction trends on healthcare access and costs.

Main Methods:

  • Analysis of data from the Round Five Community Tracking Study.

Related Experiment Videos

  • Categorization of hospital construction activities into four main types.
  • Examination of factors influencing hospital capacity changes.

    • Main Results:

    • Identified four primary types of hospital construction: general capacity expansion, specialty service growth, facility replacement, and addressing capacity constraints.
    • Observed that motivations vary, including responses to community needs and competitive "medical arms race" dynamics.
    • Projected that current construction may improve access for some but risks creating costly excess capacity.

    Conclusions:

    • Hospital construction is multifaceted, driven by diverse needs and competitive pressures.
    • The trend towards increased hospital capacity may lead to improved consumer access but carries a significant risk of financial inefficiency due to potential overcapacity.