A looming 2030 seismic deadline in California could make key equipment lead times and prices even more strained than they already are.
Under the state’s seismic requirements, general acute care hospital buildings must meet standards by Jan. 1, 2030, to ensure they remain functional after an earthquake. These improvements focus on structural and nonstructural performance.
The deadline is sparking demand for hospital upgrades and replacement projects, according to Suffolk Construction, a Boston-based contractor specializing in healthcare work. For construction teams, a push to upgrade healthcare builds could spell greater competition for equipment.
Here, Construction Dive spoke with Bobby Eagar, Suffolk’s senior vice president of Southern California healthcare and Orange County division manager, and Louis Martinelli, head of the contractor’s Freedom Source procurement team, about the deadline and challenges on healthcare builds in the region.
Editor’s note: This interview has been edited for brevity and clarity.
CONSTRUCTION DIVE: What is required to meet California’s seismic requirements? What happens if hospitals don’t meet them?
BOBBY EAGAR: Buildings providing acute care must meet California’s structural and nonstructural seismic standards. Hospitals with buildings that fall short must retrofit or replace them, or remove acute care services from those facilities.
Hospitals must also show progress toward compliance by submitting seismic compliance plans and obtaining building permits for work in the nonstructural performance category, or NPC. If a building does not meet the applicable requirements, the hospital may have to stop providing acute care services there.
Hospitals that fail to meet California’s seismic requirements may no longer provide acute care services in noncompliant buildings and risk losing their license. State law requires the suspension or non-renewal of a hospital’s license following a notice of violation for noncompliance.
How is the 2030 seismic deadline increasing demand for hospital construction? How is the industry handling it?
EAGAR: The 2030 deadline is definitely contributing to demand for hospital upgrades and replacement projects in California. Meeting the deadline will require early planning and close coordination with hospital teams, particularly when construction must happen while facilities remain open.
LOUIS MARTINELLI: From a market perspective, interest rates and financing conditions remain important factors in when major healthcare projects move from planning into active development. So, while the deadline is contributing to demand for upgrades and replacement projects, the timing of construction will depend in part on when those projects are funded and approved.
How are equipment lead items affecting project timelines?
MARTINELLI: They’re noticeably extending project schedules.
In California, projects also need to account for HCAI’s seismic compliance planning and review requirements, which can affect the overall schedule. Identifying equipment needs early and coordinating closely with suppliers gives teams more time to align procurement with those requirements and keep projects moving.
EAGAR: A related concern is the additional pressure seismic work could put on the supply chain.
As these projects move forward alongside new hospital construction and infrastructure work, they may compete for some of the same equipment, further affecting availability and lead times. Our project and supply chain teams work together early to understand availability and evaluate options before those constraints affect the schedule.
What are the biggest challenges on healthcare construction projects today?
EAGAR: One major challenge is coordinating structural design with mechanical, electrical and plumbing requirements early in the process. When MEP needs are addressed later, teams may have to revisit structural solutions, creating schedule pressure.
Long-lead equipment is another concern. On a case-by-case basis, we’re working with clients to consider releasing equipment during permitting when there is a low likelihood that the selection will change. That can allow procurement to begin earlier while managing the risk of ordering equipment before plans are sufficiently settled.
What other trends in healthcare construction should contractors pay attention to?
EAGAR: One trend to watch is how hospitals address buildings where a seismic upgrade may not be viable.
In those cases, a hospital may pursue a Removal of Acute Care Services project. That can still require work in the existing facility, such as addressing egress or separating mechanical, electrical and plumbing systems from the noncompliant building.
Whether a hospital pursues a seismic upgrade or a RACS pathway, the work can affect MEP systems, which may need to be rerouted or relocated, or supplemented with new equipment.
