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[Monday, 15 September, 2025]

[05:29:01 PM]

Home / Hub / De Risking Hospital Upgrades From Feasibility To Del... /

[Monday, 15 September, 2025]

[05:29:01 PM]

The Hub

De-risking Hospital Upgrades: From Feasibility to Delivery

In today’s healthcare landscape, capital works are being assessed against tighter margins, higher borrowing costs, and continued pressure on construction programs.


Hospitals know they need to expand, reconfigure, or upgrade to meet demand, yet every project carries risk: financial, operational, and clinical.
 
At Studio STH, we’ve seen that the key to success is de-risking hospital upgrades from the earliest stage of feasibility through to final delivery.
 
Why “de-risking” matters
  • Financial certainty: Rising costs and fluctuating markets make lenders and boards demand robust feasibility cases and accurate whole-of-life cost planning.
  • Operational continuity: Most projects occur in live hospitals. Patient care cannot pause, so phasing, decanting, and logistics must be carefully planned.
  • Program resilience: Supply chain volatility and labour shortages require designs that allow staged procurement, prefabrication, and flexibility in sequencing.
  • Futureproofing: Facilities must adapt to new models of care, digital systems, and sustainability targets without expensive retrofits.
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Our approach — lessons learnt
Over decades of working with leading health providers, several principles consistently reduce risk:
  1. Evidence-based feasibility — Early design studies that test floorplates, clinical adjacencies, and staging scenarios help build confidence for boards and funders.
  2. Operationally efficient design — Compact layouts that shorten staff travel and simplify logistics deliver immediate and long-term savings.
  3. Staged masterplanning — Designing upgrades that can be delivered in sequenced packages avoids disruption while aligning with capital release schedules.
  4. ESD and electrification strategy — Embedding sustainability and net-zero pathways from day one reduces whole-of-life costs and regulatory risk.
  5. Prefabrication and modularity — Off-site solutions shorten programs, mitigate labour shortages, and improve cost certainty.
  6. Digital-first readiness — Spaces designed for telehealth, monitoring, and smart systems ensure flexibility as models of care evolve.
  7. Future focus — Designing for flexibility and component standardisation supports adaptable clinical models and reduces long-term replacement costs.
 
Looking ahead
With demand rising, workforce pressures growing, and sustainability in focus, the challenge is how hospital upgrades can expand capacity and improve efficiency without increasing capital risk.