Industry Relations
The healthcare industry is currently experiencing a boom in this country. With an ever-growing aging population, the need for healthcare facilities is continuing to climb. California is an excellent example of this trend.
Healthcare Construction 2009
Despite difficult times in the overall economy, healthcare projects continue to spur the state’s construction industry. That is the silver lining to the economic woes. As the state continues to struggle with budget issues, the California Hospital Association commended Gov. Schwarzenegger’s plan to stimulate construction jobs by simplifying permitting and plan review processes to accelerate hospital construction projects under $2 million. The governor rightly claims this would inject approximately $160 million into the economy.
Under this plan, hospitals can undertake lower cost construction projects—such as the installation and anchoring of new equipment or moving non-weight-bearing walls—without having to get prior approval from OSHPD. Hospitals will still have to comply with all applicable building codes and standards, and OSHPD inspectors will be required to certify a hospital’s compliance with these standards at the completion of the project.
But these small projects can't compare in size to the majority of healthcare projects under way.
Healthcare construction in California has more than doubled to $21.4 billion in the past 6 years, and 2009 will surely continue the trend. Why is this happening: compliance with Senate Bill 1953, the amendment to the 1973 Hospital Facilities Seismic Safety Act that was passed following the 1972 Sylmar earthquake. SB 1953 was created as a result of the 1994 Northridge earthquake. The bill requires that all 450 acute care hospitals in California evaluate and report on both the structural and nonstructural safety of each of its hospital buildings. Either repairs or rebuilds will be made or the facilities must be shut down. Those buildings that OSHPD deems high-risk now must meet compliance by Jan. 1, 2013.
Useful Resources and Links
American Subcontractors Association, Bay Area Chapter http://www.asabayarea.org/
California Dept. of Industrial Relations http://www.dir.ca.gov/
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