Economic uncertainty has slowed construction momentum across many nonresidential sectors. But for healthcare projects, developers have not shown signs of a pullback, according to Robins & Morton, a Birmingham, Alabama-based construction firm.

That’s one of the takeaways from the firm’s 2025 State of Healthcare Construction report, which draws highlights from healthcare executives, architects and contractors in the healthcare construction space. This year’s report explores topics such as sustainability, design and cybersecurity, all through the lens of a construction partner’s role on these projects.

The report noted the pace of healthcare construction has largely held steady, in part because facilities still need to modernize in order to compete, said Derek Gregg, vice president of operations at Robins & Morton. Spending on healthcare construction hit $69.78 billion in February 2025 and remains up 2.1% compared to year-ago levels.

At the same time, healthcare developers are relying more heavily on their contractors early in the process to manage rising costs, mitigate risk and keep projects on track.

CONSTRUCTION DIVE: Many construction firms are reporting slower decision-making in the current environment. What did your team observe specifically regarding healthcare construction activity?

DEREK GREGG: Healthcare construction is somewhat unique in that it is more insulated from economic uncertainty than other sectors for a couple of reasons.

First, demand for healthcare services remains the same regardless of economic activity. Second, the process of planning healthcare projects, raising or allocating appropriate funding and beginning construction activities often takes place on a longer timeline than other commercial ventures.

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One thing I will pushback on when it comes to this article is the cost of construction. Yes we know the need of healthcare is not directly dependent on economic conditions but the ability to get a reasonable bid on such project can be a toss up. We recently struggled with a bid offering that only got one proposal and it was over bid by 50% of the expected estimated amount! Plus healthcare is heavily subsidized by the government so medical groups both private and public can rely on the government as a payer if last resort thus paying back these capital loans they get to build such facilities.