Lee County, Florida, August 22, 2025
News Summary
Skanska has been awarded a roughly $435 million public-private partnership to deliver a 560,000-square-foot hospital and medical office complex in Florida. The project includes a five-story hospital and an adjacent medical office building, central energy plant, ambulatory surgery center and expanded emergency capacity. Skanska plans to use Integrated Project Delivery, design-assist, prefabrication and BIM to reduce cost and schedule, citing typical savings of 10–15%. The firm emphasizes local hiring and supplier development, with a majority of subcontracting expected to be local and a significant share awarded to minority firms. Utility work is already underway.
Skanska’s Big Healthcare Move: $435M Florida PPP, IPD Savings, and a $442B Global Opportunity
Top line
A major global builder has secured a $435 million public-private partnership to deliver a large hospital and medical office campus in southwest Florida, marking a high-profile entry into an expanding U.S. healthcare construction market. The project and the firm’s project delivery methods are being cited as examples of how integrated planning and local partnerships can cut costs and speed schedules while positioning contractors to pursue a global healthcare construction opportunity forecast to reach $442.0 billion by 2034.
Key project and timeline
The Florida contract covers a roughly 560,000-square-foot complex, including a five-story hospital (about 416,000 square feet) and a 125,000-square-foot medical office building with an ambulatory surgery center. Project scope also includes a central energy plant, rehabilitation spaces, specialty clinics, up to 168 patient rooms, 44 emergency department beds, and multiple operating rooms. Utility work has already begun and the campus is scheduled for completion in the fourth quarter of 2027.
How the builder aims to cut cost and time
The firm is using Integrated Project Delivery (IPD), design-assist, and a co-located design-and-construction “Big Room” setup. Project materials indicate this approach produced about a 10% cost reduction and a 15% faster timeline on the Florida pediatric hospital example. Other projects in the firm’s recent portfolio showed similar benefits: a heart and vascular hospital finished three months early with savings redeployed to additional fit-out, and another expansion used prefabrication and Building Information Modeling to save $3.5 million and 10 weeks.
Market context and drivers
Demand for healthcare construction is being driven by an aging population, growth in outpatient and ambulatory care, and post-pandemic infrastructure modernization. The U.S. population aged 65 and over is projected to grow significantly by 2030, and ambulatory surgical centers are expanding at a rapid rate. Healthcare construction spending in the U.S. reached roughly $69.78 billion by 2025, reflecting year-over-year growth, and some forecasts put the global sector on a path from about $284.6 billion in 2024 to $442.0 billion by 2034.
Growth rates and spending models
Projections cited for the sector include a compound annual growth rate of about 5.3% from 2023 to 2030 and a specific growth trajectory for design-build work that may reach $119 billion with a CAGR near 4.6% from 2024–2028. These figures reflect long-term demand for new hospitals, expansions, micro-hospitals, specialty centers, and sustainability-focused projects.
Pipeline examples and sustainability
The developer’s pipeline reportedly includes micro-hospitals, specialized care centers, and hospital expansions designed with sustainability in mind. Examples noted in project materials include a 20,000-square-foot micro-hospital, a cardiovascular and neuroscience expansion, and a university hospital expansion aiming for green building certification.
Local partnerships and workforce development
The Florida PPP shows an emphasis on local hiring: about 55% local and 22% minority subcontractor participation are part of the reported plan. The builder also runs a long-standing program designed to help small and diverse firms learn contracting, bonding, safety, and sustainability practices. That program has worked with hundreds of companies and helped steer significant contract dollars to participating firms.
Risks and sector challenges
The sector faces headwinds including rising material prices—steel and rebar costs have increased notably since 2019—and regulatory hurdles that can delay projects. Supply chain risks remain a concern, but the contractor cites strategic partnerships, local subcontractor engagement, and operational efficiencies as tools to mitigate those pressures.
Why this matters
Large PPPs and a focus on integrated delivery models illustrate how construction firms are adapting to a healthcare market that needs seismic-resilient designs, energy-efficient systems, modular methods, and faster delivery. These trends are reshaping how health systems plan new facilities and how builders compete for long-term hospital and campus work.
FAQ
What is the scope of the Florida healthcare project?
The project includes a five-story hospital of roughly 416,000 square feet, a 125,000-square-foot medical office building with an ambulatory surgery center, a central energy plant, rehab spaces, specialty clinics, and associated site work totaling about 560,000 square feet. Completion is scheduled for late 2027.
What is Integrated Project Delivery and why is it used?
Integrated Project Delivery is a collaborative approach that brings owner, designer, and contractor together early and often. It aims to reduce waste, cut costs, shorten schedules, and align incentives—project examples show single-digit percentage cost savings and measurable time reductions.
How big is the global healthcare construction market?
Forecasts indicate the global healthcare construction market could grow from about $284.6 billion in 2024 to roughly $442.0 billion by 2034, reflecting demand from aging populations and expanded outpatient services.
What risks do builders face in healthcare construction?
Key risks include higher material prices, labor shortages, regulatory delays, and supply chain disruptions. Firms are responding with local partnerships, prefabrication, cross-training, and targeted outreach to subcontractors.
How do local hiring and supplier programs factor in?
Local hiring targets and supplier development programs aim to boost contractor resilience, improve community benefits, and expand the pool of qualified specialty subcontractors. Reported participation rates and long-term program outcomes show these efforts can channel substantial work to local and diverse firms.
Key features at a glance
| Feature | Details |
|---|---|
| Project value | $435 million (approximate PPP contract) |
| Size | About 560,000 sq ft total (hospital + medical office building) |
| Delivery methods | Integrated Project Delivery (IPD), design-assist, prefabrication, BIM |
| Reported savings | 10–15% potential cost/time gains on select projects |
| Completion target | Fourth quarter, 2027 |
| Local subcontractor goals | Reported 55% local and 22% minority participation on the PPP project |
| Market outlook | Global healthcare construction is forecast to reach $442.0 billion by 2034 with multi-year growth driven by aging demographics and outpatient care expansion |
Deeper Dive: News & Info About This Topic
Additional Resources
- Construction Dive: Skanska Florida hospital (Lee Health PPP)
- Wikipedia: Skanska
- CoStar: Skanska’s new South Florida vice president to spearhead growth
- Google Search: Skanska South Florida vice president
- Global Construction Review: Skanska completes $38M Florida high school expansion
- Google Scholar: Skanska Florida high school expansion
- Construction Dive: Skanska mentor small-business program
- Encyclopedia Britannica: Skanska small business program
- WEAR-TV: Court sides with Skanska, dismisses claims over Hurricane Sally damages
- Google News: Skanska Hurricane Sally court
Author: Construction TX News
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