Where is Healthcare Construction happening?

Since 2016, projects for public hospitals and surgeries, health and medical centres constituted on average 80% of the contract awards in the healthcare sector by value. Medical and Healthcare planning applications reached £2.9B in 2021

Source: Snap Analysis 2021 Year Review.

Planning approved pipeline of healthcare construction on a regional basis:

• London 25%,
• East of England 23%
• South East 12%

These three regions lead the forward planning approved pipeline of healthcare work.

The healthcare sector construction output declined by 37% between 2016 and 2020. While the forecasts suggest market growth between 2021 and 2025, the growth rate is not enough to compensate for the decline in the past five years.

The NHS capital allocation out of the Department of Health and Social Care core capital budget of £8.5bn for 2021/2022 is £6.2bn. 

The long term plan builds on the policies laid out in the NHS Five Year Forward View and includes:

• Improving Clinical Services
• Primary and Community Services
• General Practices
• Digital Services
• Fully Integrated Community-based Healthcare
• Mental Health/Learning Disabilities
• Urgent and Emergency Care
• Integrated Care and Population Health

Ozge Celik Russell, Research Manager and editor of the Healthcare Construction Marker Report comments: “In the NHS, the shift of focus away from hospital-based provision towards a community-based model of care continues. This transforms primary care services in line with the NHS Five Year Forward View and the NHS Long Term Plan which creates opportunities for smaller value projects to provide extensions, reorganization and refurbishment of existing primary care facilities.”