10th Aug

2014

Prefabrication Saved a Year Plus Millions off Hospital’s Construction Cost
Exempla/St. Joseph Denver Hospital

The Denver Exempla/St. Joseph hospital in Denver

Months and millions of dollars were saved due to a Denver hospital using prefabricated materials.

At Exepmpla/Saint Joseph hospital, 440 bathroom facilities, as well as electric conduit and plumbing were added using prefabricated units.  These units were put together to create working plumbing and electrical systems for the hospital’s use.

One year, and approximately $4.3 million in expenses reduced construction costs on the facility.  This provided the hospital with a 7% reduction overall, with a savings in 29,500 hours of labor.  These prefab units solved many logistical issues such as bathroom leaks, which are common in patient bathrooms.

Hospital construction is exploding right now, but costs for some of the expansion and construction projects worry healthcare finance executives. Replacement facilities for both Johns Hopkins and Long Island College Hospital cost at least $1 billion.  Denver is feeling the financial crunch as well, with a Veterans Affairs Hospital construct pushing $500 million over budget.

Hospital construction is slowly and effectively accepting the concept of prefabrication in these circumstances.  Miami Valley Hospital and Orthopedic Center deployed many prefabricated units during construction, which reduced build time by approximately two months and saved approximately $1.2 million.

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