Medical construction boom in Utah

Utah's construction boom isn't confined to new houses or office buildings.

As a growing population increases the demand for health care, more hospitals, surgical centers and technical complexes mean more revenues for local builders.

"We won't see a decrease in health care construction until 2015," said Mike McDonough, construction manager for Sandy-based Layton Construction Co. "Facilities are at capacity, people are (living) longer, inpatient beds are being created, outpatient services are being expanded. Nationally, the aging population has put a pretty big hit on health-care construction." For some companies, the surge in new medical facilities has been monumental. For example, Salt Lake-based Okland Construction Co. in 1999 took in just $7 million in health-care-related projects. In 2002, revenues more than doubled to $18.5 million. By 2004, they had jumped to $97 million.

But by the end of 2006, Okland anticipates its revenues from health-care projects will reach $313 million, much of that coming from its building of the massive Intermountain Medical Center in Murray. About 35 percent to 40 percent of Okland's current work is health-care related, compared to about 5 percent a decade ago.

"We've done a lot of health care, but this is the largest health-care project we've done," said Randy Okland, president and chief executive of Okland Construction. "It's also the largest single building contract that we've had."

The $387 million Intermountain Medical Center, which spans five specialty hospitals and spreads across roughly 100 acres, represents the climax of Utah's health-care construction boom.

"It's the largest construction project currently under way in the state of Utah," said Jess Gomez, a spokesman for Intermountain Health Care. "This is the footprint for the next 100 years."

Fred Strasser, project director for Okland Construction, is overseeing the work at Intermountain Medical Center. He said vacant floors were planned in each of the five main buildings to handle future expansion.

"We're already starting to see some of those floors now being designed by the owner," Strasser said. "They are starting to look at some of the empty spaces to build out."

Gomez attributes the rise in Utah's health-care building to three factors: overall population growth of the state, relocation of health-care facilities and older buildings needing replacement.