Hospitals may be confronted with increased construction costs due to the increased price of materials, a new study by the New York-based Moody’s Analytics says.
The analysis additionally says that ongoing public spending constraints are making it more difficult for hospitals to secure all the revenue they need for new construction.
In fact, continues the analysis, a combination of an increase in both essential medical supplies as well as building materials are expected to “impact not-for-profit hospitals and healthcare providers, as well as public finance sectors, with significant expenditure programs.”
The analysis notes that the challenge of importing building materials has only been made more formidable due to the pandemic economy.
“Beyond major producing regions in the global construction supply chain such as Chinese copper and steel, Canadian lumber, Italian marble, and ceramic from Brazil, Spain, and Turkey, a range of other materials and equipment are sourced globally,” notes the analysis.
In that same category can be found pacing stones, lighting, electrical equipment, and even elevators.
A pandemic-induced fragmented supply chain also means that hospitals are having a more difficult time securing reliable personal protective equipment.
Because much of that equipment has come from China, there has been a call among members of Congress to have more personal protective equipment plants established in the U.S.
While such a move may or may not reduce costs for American hospitals, it will almost certainly be good news for the country’s construction industry, tasked with building new PPE facilities in the U.S.
Moody’s Analytics is a subsidiary of Moody’s Corporation focusing on economic research and consulting.
By Garry Boulard
