Bed count

An artist's impression of the Cleveland Clinic hospital in Abu Dhabi, which is under development by Mubadala.

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As the demand for hospital beds increases across the GCC, the number of construction projects in this sector continues to rise. But for those looking to bid in this developing market, hospital building presents a number of challenges. CW investigates the issues and complexities involved in construction.

Financial crisis or not, hospital projects are one of the few types of development that are unlikely to slow down.

Leading the GCC with a US $10 billion hospital building initiative currently, Saudi Arabia is certainly preparing for a sharp rise in hospital demand, whilst according to healthcare engineering experts, Kuwait has set aside roughly KD37 billion (US $127 billion) to spend on hospital projects in the next four years with a view to replacing inadequate facilities built three decades ago.

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In the UAE, two of Abu Dhabi’s biggest projects include the complete refurbishment of both Al Ain and Al Mafraq hospitals, whilst in Dubai, a report by the Chamber of Commerce and Industry anticipates as many as 17 new hospitals providing 2,325 beds will be built in 2010 alone.

The increase in demand, expected to hit a massive 165,000 beds by 2025, pushing healthcare costs up five fold to US$60 billion according to a report by McKinsey, is partly due to a growing prevalence of Type 2 diabetes and obesity throughout the region, as well as increasing populations and a fresh influx of expatriates.

In some countries, there is an additional necessity to bring in more healthcare tourism.

But with a growing need for healthcare facilities, inevitably, there emerges a new demand for hospital building, and as with all developing markets, it is critical for contractors, architects and consultants to consider the pros and cons.

Speaking about the negatives, WSP Middle East’s technical director for healthcare Carl Platt says: “Healthcare facilities are far more complex in their design than other types of projects. The entire construction team is liable for ensuring quality standards are met, and there are far more opportunities to get it wrong if you don’t know what you’re doing.”

On the other hand, he adds, there are plenty of new business opportunities for contractors and consultants, with a guaranteed demand for additional projects irrespective of the world’s economic challenges.

According to a chief designer of hospital projects from an Abu Dhabi consultancy, there may also be less competition for hospital projects due to their complex nature, while profit margins tend to be slightly higher and a good reputation awaits the relevant contractors.

But before firms can even think about the general risks of hospital building, industry specialists urge them to consider the less obvious complexities that make hospital construction so unique.