Healthcare Construction Update

One of the reasons the Pittsburgh construction market looks weaker for the next 12-18 months is the uncertainty in the healthcare market. Just two years ago, the major programs at UPMC and AHN were going to bring billions of dollars in construction projects to the region from 2019-2022. Some of those projects were being pushed back already (UPMC Heart & Transplant, UPMC Shadyside/Hillman were probably 2021-2022 starts at best), but the financial stress caused by the COVID-19 pandemic. If you want an in-depth look at what’s going on in the healthcare market in Pittsburgh (and beyond), the July/August BreakingGround dropped this week. Check out the feature.Earlier this week, AHN presented the updated institutional master plan for West Penn Hospital to Pittsburgh Planning Commission. Among the major highlights of the ten-year plan were a $100 million outpatient/medical office, a replacement for the Mellon Pavilion, and a 450,000 square foot inpatient tower. Along with the inpatient tower, a 100,000 square foot inpatient infill project will be built, an investment of $300-400 million for new or expanded inpatient facilities. AHN’s other major project on the boards is the $300 million cardiovascular tower planned as a vertical addition above the new cancer center (see cover above) at Allegheny General Hospital. No schedule has been set for construction but CM proposals are expected to be sought this summer.

Following up two projects that had been bid earlier in the spring, PJ Dick is doing preconstruction services for The Watson Institute’s $9 million expansion in Sewickley and Evans General Contracting is building the 250,000 square foot global distribution center for Komatsu. That’s being developed by SunCap Property Group at the Alta Vista Business Park in Fallowfield Township, Washington County. That’s a big win for Mon Valley Alliance and Washington County.

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