Construction & Facilities Management

Honolulu's Kuakini Medical Center was anticipating an enormous capital investment to upgrade its energy systems, when a golden opportunity came along.

Back in the early 2000s, Mid-State Health Center was in dire need. The new CEO knew something had to be done immediately, but the facility didn't have access to appropriate funding. So, the CEO got creative.

Ten years ago, executives at MaineGeneral Health, a rural healthcare system consisting of several acute care hospitals, physician practices, outpatient facilities and homecare services in central Maine, knew they had a decision to make regarding two of their facilities: they could upgrade their buildings or start from scratch.

Cost overruns on healthcare construction projects can mean big bucks to hospital executives overseeing capital spending. Staying on budget takes a watchful eye and guiding hand at the C-suite level and a deep enough understanding of the design and construction processes to create the proper budget from the start, say industry experts.

A strategic and centralized approach to healthcare real estate results in significantly better overall financial and operational performance, according to a new report from global real estate services firm Jones Lang LaSalle.