Hospital Finance and costing

Design fee up to reduce Total Costs of Ownership (TCO)

The pie chart above shows the approximate proportions of the Hard Costs (the construction contract price) and Soft Costs (design fees, supervision costs, fees and charges, and other project costs). Obviously, the actual percentages will vary project to project, but the chart above is given as a guide.

Architects focus and budget restrictions may drive up TCO

Hospitals have a lot of fixed costs they have to pay for regardless of how many patients they admit. Everyone wants the emergency room, surgery suite and burn unit to be equipped, staffed and ready to go even if there are no patients who need them on any given day. But hospitals don't get paid for services that aren't used. The emergency room runs a deficit if there aren't enough true emergencies, so is it any wonder that hospitals advertise how quickly you can be seen in their emergency rooms even for minor problems?

The more fixed costs a hospital has, the more lucrative every additional admission is and the more problematic it is to have fewer admissions.

Construction Budget limitations focus limits future savings in operations

Hospital management and Architects of hospital are focussing primarily on functionality within the construction budget. Rather then on aiming for long term savings on maintenance and operations.Constructors are driven by the same objective.As result..penny wise but pound foolish!

Therefor architects should focus on a design that structural lowers the break event point for hospital operations.

Do the Risk and Maintenance Scan

Is there a better way? Fortunately, yes.

The result of the scan will give you guidance to improve your operational performance , reduce your risks in technology based business process. And last but not least will reduce your Total cost of ownership.