How New Jersey is leading the way in healthcare construction

Written by Maximilian Blum, Project Director & James Burk, Senior Project Manager

With the recent news of an $80.5 Million grant to strengthen Health workforces, build foundational capabilities and modernize data infrastructure, the healthcare market in New Jersey is about to see substantial growth.4

“This is the beginning of a very exciting new chapter for the New Jersey Department of Health and public health in the Garden State,” said Health Commissioner Judith M. Persichilli. She continues, “We have a great opportunity to build a more resilient health department with a robust, well-trained workforce, a modernized infrastructure, and a stronger system for a healthier New Jersey. Everyone stands to benefit.”4 With Holt’s own healthcare projects, we have seen a substantial growth in behavioral health related programs. Clean energy and parking are also extremely important as cogen, solar, parking garages and emergency departments have been a focus of many hospital programs.

In a 2021-2022 report by NJ.GOV, the health care cluster contributed over $44 billion to the Gross Domestic Product which was roughly 8.2% of all output. The State of New Jersey Department of Labor and Workforce Development predicts that from 2018 through 2028, 64,860 jobs will be added with an annual increase of 1.2%.1 With this predicted growth, will come a need for expansion, renovations, and new technology to be installed into existing facilities. There is a substantial need for contractors, architects, engineers, and the vast workforce of various trades to facilitate these new numbers. As we can see from the chart, Ambulatory Health Care Services surpassed Hospitals as the top employer in the Health Care sector, which may translate into the construction of more Ambulatory Health Care facilities.

At Holt, we have seen these data points as well, In the past year we have seen a large increase in the number of alteration type projects. This may be due to the shift in the industry to support behavioral health as well as addressing any gaps made evident by the recent pandemic. We have seen substantial growth in Northwestern New Jersey and at a recent healthcare conference, it was brought to light that all of New Jersey is currently undergoing a large amount of healthcare construction.

“In 2019, we saw significant transactions continue to shape New Jersey’s healthcare marketplace such as Summit Medical Group’s merger with New York City-based urgent care system CityMD, as well as continued hospital consolidations,” said Brach Eichler, Managing Member and Healthcare Law Practice Chair, John D. Fanburg. He continues, “While many physician practice groups already completed mergers and acquisitions in recent years, we still are likely to see the ripple effects of this year’s mega deals on the physician community for some time to come.”3 With this expected merging, a need for facility renovations, demolition, and upgrades, may be on the rise.

As a construction management / general contracting firm, Holt has built health science facilities for over eight decades and has contributed to New Jersey’s health care infrastructure with clients including Atlantic Health System. As you can see from our past portfolio of projects, we have evolved with the industry and the strict requirements needed to build within these facilities. From emergency departments and medical office buildings to infrastructure including energy efficient programs, Holt has a vast knowledge and experience when it comes to these facilities and the requirements to build in New Jersey.

Collaborative Partnerships

Linear Accelerator

Out Patient Behavioral Health Fit-Out

ICU, Newton Medical Center

Parking Garage

IR Main Level

Emergency Department Swing Space Renovation

Ten Bed Pediatric Nursing Center

Radiology Renovation

Cultivation Facility

Chronic Care Center

Medical Office Building

Analytical Laboratory Renovation

Neurology ICU

Cardiac Rehab & PT/OT Suite

Pet Hospital

Assisted Living Center

1https://www.nj.gov/labor/labormarketinformation/assets/PDFs/pub/empecon/healthcare.pdf 2https://www.choosenj.com/key-industries/healthcare/ 3https://www.bracheichler.com/insights/2020-outlook-for-new-jerseys-healthcare-sector-continued-hospital-consolidation-pressure-on-physicians/ 4https://www.nj.gov/health/news/2023/approved/20230126a.shtml

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