Project Insight: Healthcare Construction Projects, The Americas
Summary
The Americas is a varied region encompassing the affluent developed countries in North America and the developing countries in Central and South America. In North America, and in particular the US, expenditure on healthcare is relatively high when compared to the size of the economy. According to the World Bank, the US spent 16.8% of GDP on healthcare in 2015 compared to 10.4% in Canada, 8.9% in Brazil and 8.1% in Chile. Peru, by contrast, has one of the lowest healthcare expenditures in the Americas, with 5.3% of GDP.
The overall projects pipeline is dominated by projects in the execution stage, with a total value of US$89.3 billion, followed by projects in planning with US$44.7 billion. Projects in the pre-execution stage amount to US$28.2 billion, while those at the pre-planning stage total US$548 million. The US and Canada have the highest value of projects in the execution stage, with US$68.2 billion and US$11.1 billion respectively. Assuming all projects proceed as planned; spending will reach US$32.6 billion in 2019, up from US$27.6 billion in 2018.
The majority of healthcare projects in North America are funded by the private sector, representing 67% of the total for the region, with public funding accounting for 24% and public/private financing at 9%. This reflects the prevalence of private funding in the North American healthcare system, which is more dependent on private insurance schemes than other countries in the world. In Latin America, by contrast, public funding makes up for 62% of the project pipeline value; private funding accounts for 21% while public-private funding accounts for the remaining 17%.
GlobalData’s Construction Intelligence Center is currently tracking healthcare construction projects in the Americas at all stages of development from announcement to execution, with a total value of US$162.7 billion. The US accounts for the highest value projects pipeline, with US$120.3 billion or 74% of the regional total; followed by Canada with US$22.8 billion. Chile and Mexico follow with projects valuing US$3.8 billion and US$2.3 billion respectively
Key Highlights
– Based on the data available on the capacity of new projects in terms of beds (this data is provided for 58% of projects), the project pipeline in the Americas will provide a total of 87,363 beds, with the US having the highest number in the region, with 43,719.
– Some of the largest healthcare construction projects include the US$ 2.1 billion California Pacific Medical Center in the US, the US$2 billion Windsor Mega Hospital in Canada and US$2 billion Medical Tourism Hospital in the Cayman Islands. The California Pacific Medical Center, which is currently under construction, involves the construction of 274-bed facility, 12-story hospital on 8ha of land in California. The project is being developed by Sutter Health in association with architects SmithGroupJJR and Boulder Associates Architects and is expected to be complete by early 2019.
– The Cayman Medical Tourism Hospital known as “Health City Cayman Island” is also underway and involves the construction of a 2,000-bed hospital, a medical university and assisted-living facilities aimed at patients and insurance provides seeking lower-cost healthcare in the Caribbean. The project is implemented in phases and slated to end by 2032.
Scope
– The report provides detailed projects analysis, information and insights based on all major healthcare buildings projects in the Americas.
– The report provides detailed metrics on health construction projects (as tracked by GlobalData) split by country, type and value. Detailed metrics are also provided for the top 10 countries.
Reasons to buy
– Gain insight into the development of the healthcare buildings construction sector in the Americas.
– Assess all major projects by value, start date, scope and stage of development in North America and Latin America regions and top 10 countries to support business development activities.
– Plan campaigns by country based on specific project opportunities and align resources to the most attractive markets.
