NCPA - National Center for Policy Analysis

Health Construction Shrinks Twice As Fast As Other Construction in June

August 3, 2016

Senior Fellow John R. Graham writes in NCPA's Health blog:

The see-saw in health facilities construction continues. Health construction starts dropped 1.4 percent in June, versus a drop of 0.6 percent for other construction.  However, there was a significant difference between the private and public segments.

Construction of private health facilities dropped 2.0 percent, versus a decline of 0.6 percent for other private construction. Construction of public health facilities increased 1.0 percent, versus a drop of 0.7 percent for other public construction. For the twelve months from June 2015, there is a significant difference in trend between private and public construction. Private construction increased 2.5 percent, but private health facilities construction dropped 5.9 percent. Public construction dropped 6 percent, but public health facilities construction dropped only 0.7 percent. Overall, health construction dropped 4.8 percent, versus a slight increase of 0.5 percent for non-health construction. The remarkable volatility in health construction starts from month to month suggest more uncertainty in the health facilities market than previously data had indicated.


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