How Much Does It Cost to Build a Hospital? Understanding the Cost Breakdown from Construction Expenses to Square Footage.

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Building a hospital is no small feat, especially when considering the financial implications. Did you know, for instance, that constructing a new 300,000 sq.ft. hospital can cost up to $112,500,000? As overwhelming as these numbers may seem at first glance, understanding the different elements that make up these costs can help make this process more manageable.

This blog post will provide an in-depth look into the cost breakdown involved in creating a healthcare facility — from construction expenses to square footage considerations. Ready to delve deeper? Let’s get started!

Key Takeaways

  • Constructing a hospital can cost between $60 million to $190 million, depending on factors like size, type, and location.
  • The average cost per square foot for building a hospital ranges from $200 to $700, with larger hospitals costing more.
  • The number of beds needed can impact the overall construction cost, ranging from $200,000 to $520,000 per bed.
  • Factors affecting the cost include location (higher in expensive cities), resiliency requirements (to withstand unforeseen events), incorporation of future technologies (increasing equipment costs), and different areas within the hospital having varying construction needs.

Average Cost of Hospital Construction

The average cost of hospital construction can vary depending on factors such as location, size, and type of hospital.

Cost per square foot

Building a hospital costs a lot. The price can change for each square foot of the building. On average, it costs around $400 to $700 per square foot. Yet, prices also go from low like $200 to high like $625 per square foot.

These rates create the full cost of the hospital build. For example, creating a small 20,000 square foot hospital may need between $2.2 million and $4.4 million. In contrast, building a big 300,000 sq.ft., fully-equipped hospital could demand up to about $112,500,000! It gets pricey but health centers are important and worth every cent spent on them.

Cost per bed

The cost per bed is an important factor to consider when building a hospital. The overall cost of construction will depend on the number of beds needed for the hospital. On average, the cost can range between $200,000 and $520,000 per bed.

For example, a 300-bed hospital could have a total construction cost ranging from $60 million to $156 million. It’s essential to determine the specific needs of your hospital and plan accordingly to estimate the accurate cost per bed.

By considering this factor, you can make informed decisions about budgeting and ensure that you’re getting the best value for your investment in hospital construction.

Costs by type of hospital (emergency, micro, smart, small)

It is important to note that the cost of building a hospital can vary significantly based on its type. Emergency hospitals, micro hospitals, smart hospitals, and small hospitals each have different construction requirements and associated costs.

Type of Hospital Average Cost per Square Foot Total Potential Cost
Emergency $400 – $700 $60 million – $190 million
Micro $200 – $625 $2.2 million – $4.4 million for a 20,000 sq ft. hospital
Smart $362.69 (increased by 15% up to $419.18 in 2023) $112,500,000 for a 300,000 sq.ft. hospital, including administrative areas, emergency and operating rooms, and sufficient space
Small $200 – $625 $60 million – $187.5 million for a 120-bed hospital

These figures give you a basic understanding of how hospital type can impact the overall construction cost. But remember, these are just averages. Real-world figures can vary based on a variety of variables, such as location, type, size, and complexity of the project. A hospital construction cost calculator can help estimate the costs more accurately.

Factors Affecting the Cost of Building a Hospital

Several factors can significantly impact the cost of building a hospital, including its location, resiliency requirements, the incorporation of future technologies, and different areas within the hospital that may have varying construction needs.


The location of a hospital is one of the key factors that can affect its construction cost. In more expensive cities or areas with higher labor costs, building a hospital can be more costly.

For example, in New York City, the average cost per square foot to build a hospital is $650, while in smaller cities it could be as low as $400 per square foot. It’s important for cost-conscious buyers to consider the location when estimating their budget for a new hospital project.

Resiliency requirements

Resiliency requirements are important factors that can affect the cost of building a hospital. Resiliency refers to a hospital’s ability to withstand and recover from unforeseen events, such as natural disasters or power outages.

Building hospitals with resilient features, like reinforced structures, backup power systems, and emergency response plans, can increase construction costs. These additional measures ensure that the hospital can continue providing necessary healthcare services during challenging situations.

When considering the cost breakdown of a hospital project, it is essential to account for resiliency requirements to ensure the long-term functionality and safety of the facility.

Future technologies

Future technologies play a significant role in the cost breakdown of building a hospital. As advancements continue to reshape the healthcare industry, incorporating these technologies can drive up construction expenses.

For instance, the installation costs of state-of-the-art medical equipment and smart systems, such as electronic health records and telemedicine capabilities, can significantly add to the overall budget.

Additionally, future-proofing a hospital’s infrastructure to accommodate emerging technologies involves carefully planning and allocating funds for robust IT systems and network connectivity upgrades.

Different hospital areas

Different areas in a hospital have different construction costs. For example, the emergency department and operating rooms require specialized equipment and design features, which can increase the overall cost of building these areas.

Administrative spaces like offices and conference rooms are typically less expensive to construct compared to medical units or patient rooms. The size and complexity of each area also play a role in determining the cost.

So, when budgeting for a hospital construction project, it’s important to consider the specific needs of each area and allocate funds accordingly.

Examples of Hospital Costs

Hospital costs can vary depending on the size and type of hospital. For a 120-bed hospital, the overall cost can range between $60 million to $187.5 million. The construction expenses for a 20,000 square foot hospital can be anywhere between $2.2 million to $4.4 million. These costs include administrative areas, emergency rooms, operating rooms, and other necessary spaces. Additional costs to consider when building a hospital include real estate brokers’ fees and attorneys’ fees.

Additional Costs to Consider

Additional costs to consider when building a hospital include equipment and supplies, labor costs, and soft costs such as permits and design fees.

Equipment and supplies

When budgeting for hospital construction, it’s important to consider the costs of equipment and supplies. These expenses can add up quickly and significantly impact the overall project cost.

On average, medical equipment can account for around 30% to 40% of a hospital’s total construction budget. This includes everything from patient beds and surgical instruments to imaging machines and laboratory equipment.

Additionally, supplies like PPE, medications, and everyday consumables also need to be factored in. Ensuring you have an accurate estimate of these costs is crucial for staying within your budget while building a hospital.

Labor costs

Labor costs are a significant component of building a hospital. These costs include wages for construction workers, architects, engineers, and other professionals involved in the project.

On average, labor expenses account for about 40% to 60% of the total construction budget. It’s important to keep in mind that labor costs can vary depending on the location and complexity of the project.

So when planning to build a hospital, it’s crucial to factor in these labor costs to ensure an accurate estimate of the overall expenses.

Soft costs (permits, design fees, etc.)

Soft costs, such as permits and design fees, are additional expenses that need to be considered when building a hospital. These costs can vary depending on the size and complexity of the project.

Permits are required by local authorities to ensure compliance with building codes and regulations. Design fees cover the cost of hiring architects and engineers who will create detailed plans for the hospital’s construction.

It is important for cost-conscious buyers to factor in these soft costs when budgeting for their hospital project, as they can significantly impact the overall construction expenses.


Building a hospital is a complex and costly endeavor. The average cost of constructing a hospital can range from $60 million to $190 million, depending on various factors such as square footage, type of hospital, and location.

Understanding the cost breakdown, including construction expenses and square footage cost, is crucial for budgeting and planning purposes. By considering these factors, potential buyers can make informed decisions when it comes to building a hospital that meets their needs while staying within their financial means.


1. What is the hospital construction cost per square foot?

The hospital construction cost per square foot varies based on many factors, but it gives an average idea of building a hospital expenses.

2. How do you estimate hospital construction expenses?

Estimating hospital construction expenses involves understanding costs such as labor, materials, and fees for permits and licenses, among other things.

3. Does the cost to build a different type of hospitals like tertiary or general vary?

Yes! The project cost for a general hospital can differ from that of tertiary hospitals because their size and needs are not the same.

4. Does location affect the average cost of building a hospital in the US?

Yes! Hospital construction costs in different cities can vary greatly due to differences in land prices, labor rates, and local regulations..

5. How does square footage play into understandinghospital construction costs?

The square footage impacts how much space is needed for things like beds and equipment which will add up to your total budget needed for a new-build.

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