Increased costs are driven by higher demand for complex healthcare infrastructure and rising input costs, leading to a sustained shift in baseline prices. As healthcare costs continue to change, leveraging data to set accurate budgets and make informed decisions through the design and construction process is paramount to delivering projects on time and on budget.

The chart below shows the Producer Price Index (PPI) for new healthcare building construction, indexed to June 2012 (June 2012 = 100) tracking monthly, unadjusted costs over recent years. The index shows a clear rise in construction costs, accelerating recently due to inflation and material shortages. This upward trend highlights increasing expenses driven by rising demand for complex healthcare infrastructure and higher input costs, marking a sustained shift in baseline prices for the industry.

From 2014 onward, the PPI steadily increased, with moderate growth through 2018, driven by higher demand and material costs. Growth sped up from 2018 through early 2022, fueled by economic disruptions, inflation, and supply chain issues, pushing the PPI above 140. Prices then stabilized around 157-159 in 2023, suggesting a high but steady baseline. While costs remain significantly higher than pre-2018 levels, the recent stabilization signals a potential easing of market pressures.