Prefabrication Offers Healthcare Facilities Financial and Clinical Upsides

REDWOOD CITY, Calif., Nov. 19, 2024 – Prefabrication and modular strategies can be a keyway for healthcare systems to reduce the financial and schedule impacts of capital-build projects, according to the latest Healthcare Insights published by DPR Construction. In fact, the report notes that implementing prefabrication can positively affect cash flow through speed-to-market, potentially unlocking earlier revenue recognition and tax advantages via asset depreciation.

“The productization of the built environment and the shift from field construction to field assembly provides more certainty for scope, cost, quality, and schedule to all stakeholders,” said Robert Meyer, a DPR healthcare strategist. “Prefabrication also allows for parallel workstreams, with the production of prefabricated items can accelerate project completion because it can happen simultaneously with other on-site work, such as building structure.”

Moreover, many healthcare building typologies are ideal for prefabrication and modular solutions due to the facilities’ complex systems and often repetitive elements such as inpatient or exam rooms. Large scale, repeatable installations can also significantly reduce exposure to supply chain risks.

The benefits increase by implementing prefabrication across multiple projects, scaling cost reduction and revenue recognition benefits while also supporting the mission to care for a significant number of patients sooner. Repetition also benefits owners and patients as it strengthens health systems’ priorities of implementing best clinical practices, including focusing on staff efficiency and patient safety.  

“The value of prefabrication is not limited to the large and repeatable aspects of building programs,” Meyer said. “From a schedule perspective, even a single solution like a prefabricated modular electrical or technology room can positively influence the critical path.” 

DPR’s Healthcare Insights series examines the critical issues facing healthcare providers at the intersection of care and construction. Additionally, DPR’s Constructing With Care podcast takes a deeper dive into these topics along with views from other industry leaders.

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