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4 Min. Read

How Much Does It Cost to Build a Hospital: Construction Cost

In all communities, large or small, hospitals are an integral part of life. Hospitals serve their communities in many ways. They help to maintain the health of the people in the community, and they tend to their needs during emergencies. Hospitals are a required part of any village, town, or city.

You may be wondering how much a hospital costs to construct. Estimating hospital construction costs depends on the size of the hospital. Hospital design plays a key role in determining the cost of hospital construction. Keep reading to find out more!

Here’s What We’ll Cover:

Breaking Down Hospital Construction Costs

Estimating Construction Costs Based on Hospital Parts

Key Takeaways

Breaking Down Hospital Construction Costs

The average construction costs for a hospital have a large range. It’s reported that the average cost is typically between $60 million and $190 million for a hospital, depending on the area that it’s being built in. A smaller community hospital will likely cost less than a hospital built in a larger city. It is also dependent upon the medical equipment that the hospital is outfitted with.

Here are some of the average construction costs based on the hospital size alone:

  • Emergency Hospital - $200 to $500 per square foot: Emergency hospitals are makeshift hospitals. They aren’t meant to be permanent. These hospitals are built to serve communities in the event of emergencies, like a natural disaster or a pandemic.
  • Micro Hospital - $280 to $400 per square foot: These hospitals have a cost similar to that of emergency hospitals, but they’re permanent structures. Think of them like urgent care facilities, but with the medical supplies and equipment to handle more serious needs.
  • Modular Hospital - $500 to $600 per square foot: The modular hospital, also known as the smart hospital, is a full-service hospital. It’s called a modular hospital because it is built from prefabricated buildings that can be arranged to suit the needs of the patient. Because they are prefabricated, they can be built very quickly.

These figures give you an idea of how much a hospital can cost to construct. There are other factors that need to be taken into consideration when thinking about hospital constructions, too.

Estimating Construction Costs Based on Hospital Parts

There are quite a few ways to estimate the costs of hospital construction projects. Looking at hospitals from a size standpoint is one, but they can be looked at in other ways, too.

Number of Hospital Beds

An easy way to estimate the cost of a hospital is to think about how many beds will be in the facility. In nearly all cases, the costs of a 300-bed facility will be far higher than that of a 100-bed facility. It has 3 times the patient capacity, and as such will need 3 times the supplies and space.

For every 50 beds a hospital has, construction costs will range between $25 million and $75 million. This includes the cost of labor.

Hospital Departments and Parts

Hospitals are segmented into different units that serve different purposes. These units normally consist of the following:

  • Hospital Administration: Administration areas in the hospital are offices. They handle the administrative needs of the facility. In teaching hospitals, these areas are normally much larger. These areas cost between $450,000 and $600,000 to construct, on average.
  • Hospital Capacities: These are also called hospitality capacities. They include housekeeping, laundry, and food service areas. They normally cost between $450,000 and $1 million, depending on the hospital’s needs.
  • Hospital Safety Standards: The cost of hospital safety standards is based on the services offered. They include sanitation, oxygen and gas supplies, and radiology needs. Hospital safety standards can cost anywhere between $3.5 million and $6.4 million.
  • Medical Departments: The bulk of hospital construction costs comes from the medical departments. Emergency departments, surgical departments, and diagnostic departments all have unique costs. On average, the construction of medical departments for a hospital costs $45 million to $70 million.

Equipment and Supplies

Hospital equipment and supply costs are two different costs. Equipment should be considered semi-permanent fixtures, like x-ray viewers and instrument tables. Supplies are disposable, and are consumed while caring for patients. Equipment can cost anywhere from $300 to $400,000 per piece. Supplies are dependent upon the volume of patients seen. The largest hospitals will need much more equipment and supplies.

Key Takeaways

Estimating the cost of hospital construction can be done in a number of ways. The size of the hospital, the number of beds, and the different departments needed are good ways of estimating. The larger the hospital, the higher the costs.


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