Construction progress on a new hospital and medical office complex delivered under a public-private partnership.
Lee County, Florida, August 22, 2025
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.
The largest, most immediate development: a $435 million public-private partnership to build a new hospital campus in Southwest Florida has put large-scale healthcare work squarely in focus. The project is part of a broader strategy that pairs public-private partnerships and construction innovation to capture expanding demand in U.S. healthcare construction and position for a projected $442.0 billion global market by 2034.
The Florida campus is planned as a multi-building center totaling roughly 560,000 square feet. It includes a five-story, ~416,000-square-foot hospital and a ~125,000-square-foot medical office building with an ambulatory surgery center. The scope covers a central energy plant, rehabilitation gym, specialty clinics, up to 168 patient rooms, 44 emergency department beds and multiple operating rooms. Utility work has started and the complex is scheduled for completion in late 2027, with the contract slated to be recorded in the company’s Q4 order bookings.
Demand fundamentals are strong. U.S. healthcare construction is expanding because of an aging population, a shift toward outpatient care, and post-pandemic infrastructure modernization. U.S. healthcare construction spending reached $69.78 billion by 2025, a figure that reflected a 2.1% year-over-year increase. The sector is projected to grow at a 5.3% CAGR from 2023 to 2030. Globally, the market is expected to rise from $284.6 billion in 2024 to $442.0 billion by 2034, representing a multi-year growth runway.
The firm emphasizes collaborative delivery models and sustainability to reduce risk and cut costs. Integrated Project Delivery (IPD) and design-assist practices are highlighted as methods that can deliver 10–15% in cost and time savings. Those gains are cited as being demonstrated on the Florida pediatric campus where co-located design and construction teams worked in a shared environment to trim costs by about 10% and accelerate schedule by roughly 15%.
Recent projects point to transferable techniques. A heart and vascular hospital in North Carolina finished three months early, with savings used to outfit an extra floor. A major university medical tower expansion used prefabrication and digital modeling to save $3.5 million and shorten construction by 10 weeks. The pipeline includes micro-hospitals, specialized care centers, and sustainability-focused hospital expansions and aims to apply IPD and prefabrication broadly.
The Florida campus reports robust local engagement with about 55% local and 22% minority subcontractor participation on the job. The company’s small-firm development program has trained hundreds of contractors since 2007 and claims to have helped participating firms win significant work, including partnerships on school and civic projects. These programs focus on contracting methods, bonds, safety, sustainability and site logistics to widen the pool of capable local suppliers.
Challenges include rising material prices and regulatory complexity. Steel and rebar are cited as having increased roughly 15% since 2019. Tariffs, interest rates and permitting delays are also factors that have delayed or canceled projects across the industry. The firm counters with strategic partnerships, local supplier engagement, cross-training labor and operational efficiencies to manage supply-chain and labor risks.
The combination of long-term contracts with health systems, adoption of IPD, and a large PPP contract pipeline is framed as supporting steady revenue visibility. Market watchers will be monitoring the Florida campus schedule and cost trajectory, the company’s ability to win additional PPPs in the coming year, and how cost pressures on materials affect margins across projects.
The Florida hospital campus serves as a practical example of how collaborative delivery, sustainability measures and public-private financing can be combined to address rising demand in healthcare construction. Continued demographic shifts — including a projected 20% growth in the population aged 65+ by 2030 — and rapid expansion of outpatient facilities (ambulatory surgical centers growing at an estimated 12.3% CAGR) underpin long-term demand. At the same time, material inflation and regulatory hurdles remain immediate operational challenges.
The project is a multi-building hospital campus valued at about $435 million. It totals roughly 560,000 square feet, including a five-story hospital and a medical office building with an ambulatory surgery center. It is scheduled to open in late 2027.
Collaborative delivery models such as Integrated Project Delivery and co-located teams are reported to yield about 10–15% savings in cost and schedule for some projects, achieved through earlier trade involvement, improved coordination and use of prefabrication.
U.S. healthcare construction spending reached approximately $69.78 billion by 2025. The global market is projected to grow from about $284.6 billion in 2024 to $442.0 billion by 2034.
Key risks include rising material costs (steel and rebar up roughly 15% since 2019), permit and regulatory hurdles, labor constraints and broader macroeconomic influences such as tariffs and interest rates.
The campus reportedly includes strong local subcontractor participation and programs aimed at growing small and diverse firms. The approach aims to keep jobs in the region and broaden the supplier base.
| Feature | Detail |
|---|---|
| Project value | $435 million public-private hospital campus |
| Project size | About 560,000 sq ft across hospital and medical office building |
| Schedule | Utility work begun; completion targeted for late 2027 |
| Delivery methods | Integrated Project Delivery (IPD), design-assist, prefabrication |
| Claimed savings | 10–15% in combined cost and time reductions on select projects |
| Local engagement | Approximately 55% local and 22% minority subcontractor participation reported |
| U.S. market spending (2025) | $69.78 billion in healthcare construction spending |
| Global market outlook | Projected to reach $442.0 billion by 2034 |
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