Healthcare Insights
Healthcare facility construction activity by state
Hospital and healthcare construction projects expand and improve facilities to better serve patients and the healthcare providers who work there. And new healthcare facilities help increase services and capabilities in the local communities.
How is healthcare construction activity tracked?
In the Definitive Healthcare HospitalView product, we collect certificates of need (CONs) and requests for proposals (RFPs) from federal, state, local, and healthcare system websites. The “new hospitals/units/services” and “hospital/facility relocation/renovation” CON categories and “construction - new building/relocation/design” RFP category track new hospital buildings, hospital construction projects and healthcare facility renovations to inform the market on planned projects.
What is a healthcare certificate of need?
Certificates of need (CONs) are legal documents required by the District of Columbia and many states for the approval of capital expenditures and projects. The goal of CON programs is to help reduce healthcare spending by ensuring new expenses fit the community and the healthcare system’s needs.
Definitive Healthcare collects CONs by monitoring the websites of the 36 states/federal jurisdictions with participating programs and makes the information available in our HospitalView product.
What is a healthcare request for proposal?
Requests for proposals (RFPs) are documents that announce and outline the specifics of a project that a hospital or healthcare system plans to undertake. These formal requests solicit bids from suppliers and contractors to complete the proposed project.
The Definitive Healthcare HospitalView product tracks federal healthcare RFPs from the System for Award Management website and collects non-federal RFPs by monitoring state, local, and healthcare entity websites for RFPs and purchasing requests.
The “new hospitals/units/services” and “hospital/facility relocation/renovation” CON categories and “construction - new building/relocation/design” RFP category track new hospital buildings, hospital construction projects, and healthcare facility renovations to inform the market on planned projects.
How many healthcare construction CONs and RFPs are there each year?
Between 2019 and September 2023, we collected more than 12,900 healthcare construction CONs and RFPs. For the last four calendar years, on average we tracked about 2,670 CONs and RFPs each year.
This list below ranks states by their total number of construction-related CONs and RFPs over the last few years.
Rank | State | Number of CONs and RFPs 2019-2023 | State requires CON | Explore dataset |
---|---|---|---|---|
1 | New York | 2,757 | Yes | Explore |
2 | Texas | 774 | No | Explore |
3 | California | 680 | No | Explore |
4 | Virginia | 642 | Yes | Explore |
5 | Georgia | 542 | Yes | Explore |
6 | North Carolina | 470 | Yes | Explore |
7 | Florida | 425 | Yes | Explore |
8 | Illinois | 411 | Yes | Explore |
9 | Michigan | 386 | Yes | Explore |
10 | Massachusetts | 329 | Yes | Explore |
11 | Ohio | 329 | Yes | Explore |
12 | Pennsylvania | 309 | No | Explore |
13 | Maryland | 304 | Yes | Explore |
14 | South Carolina | 293 | Yes | Explore |
15 | District of Columbia | 281 | Yes | Explore |
16 | Washington | 272 | Yes | Explore |
17 | Missouri | 252 | Yes | Explore |
18 | Kentucky | 223 | Yes | Explore |
19 | Tennessee | 215 | Yes | Explore |
20 | Alabama | 184 | Yes | Explore |
21 | Oklahoma | 154 | Yes | Explore |
22 | Mississippi | 151 | Yes | Explore |
23 | Arkansas | 149 | Yes | Explore |
24 | New Jersey | 147 | Yes | Explore |
25 | Louisiana | 145 | Yes | Explore |
26 | Connecticut | 138 | Yes | Explore |
27 | Colorado | 137 | No | Explore |
28 | Wisconsin* | 131 | No | Explore |
29 | Iowa | 130 | Yes | Explore |
30 | Indiana | 129 | Yes | Explore |
31 | Kansas | 105 | No | Explore |
32 | West Virginia | 99 | Yes | Explore |
33 | Arizona* | 93 | No | Explore |
34 | Hawaii | 91 | Yes | Explore |
35 | Oregon | 91 | Yes | Explore |
36 | Minnesota* | 89 | No | Explore |
37 | Nevada | 86 | Yes | Explore |
38 | Utah | 83 | No | Explore |
39 | Maine | 80 | Yes | Explore |
40 | Wyoming | 65 | No | Explore |
41 | South Dakota | 60 | No | Explore |
42 | New Mexico | 59 | No | Explore |
43 | Montana | 57 | Yes | Explore |
44 | Delaware | 55 | Yes | Explore |
45 | Rhode Island | 49 | Yes | Explore |
46 | Alaska | 48 | Yes | Explore |
47 | Idaho | 41 | No | Explore |
48 | Nebraska | 40 | Yes | Explore |
49 | Vermont | 37 | Yes | Explore |
50 | North Dakota | 29 | No | Explore |
51 | New Hampshire | 25 | No | Explore |
Which states have the most healthcare construction activity?
New York had the most construction CONs and RFPs from January 2019 through September 2023 with more than 2,700. The state’s CON requirements, large population, and number of healthcare facilities likely contribute to this number. Texas had nearly 800 CONs and RFPs while Georgia had more than 500.
What are the trends for healthcare construction?
When looking at the annual number of healthcare construction CONs and RFPs for the top five states, some trends emerge. From 2019 to 2020, most of the states saw decreases in healthcare construction activity, likely related to the COVID-19 pandemic.
Between 2021 and 2022, Virginia had an increase of more than 160 healthcare construction CONs and RFPs. The states of New York and Georgia also had increases of 85 and 75 healthcare construction CONs and RFPs, respectively.
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