Skanska Tapped for $146M Children’s Hospital in Memphis

Le Bonheur Children’s Medical Center in Memphis has awarded construction management responsibilities for a new children’s hospital to Skanska USA. The construction tab comes to $146 million, while Le Bonheur’s total cost will add up to approximately $327 million. The project (pictured) has broken ground and is scheduled for completion in 2010. Skanska has been busy with hospitals lately. Last week, the company announced the start of work on a $76.6 million cardiac hospital in Dayton, Ohio, for Miami Valley Hospital. “Hospital construction is going strong,” Steve Gressel, a senior vice president with Skanska USA told CPN today. “Over the past two years, we’ve seen double digit growth in the market. It’s expected to slow this year and next, but only into the single digits.”All told, the company is currently working on hospital projects with a total contract value of more than $5 billion. In this quarter alone, new hospital contracts have also been received in Virginia, California and Ohio. Despite the slow economy and credit shortage, a number of forces are driving hospital construction, Gressel said. These include aging facilities that do not fit the needs of tomorrow’s projected patients, an aging population that needs more and new forms of health care, a shift to more outpatient care and competition among hospitals and other kinds of facilities.Skanska USA Building provides construction, general contracting, design and design-build services. The company’s clients range across the pharmaceutical, healthcare, education, electronics, infrastructure, sports and entertainment industries. Skanska USA’s is a division of Stockholm-headquartered Skanska, one of the world¹s largest building groups, involved in construction, development of commercial and residential projects and public-private partnerships.