The $320 million Dignity Health Hospital in Elk Grove is the leading institutional project for July listed by Dodge Data & Analytics in its monthly Dodge Momentum Index.
Dignity Health’s future, $320 million hospital in Elk Grove will eliminate the current use of their south Sacramento hospital, hospital president Phyllis Baltz said earlier.
“(The hospital) would be a replacement for Methodist (Hospital). It’s our mission to serve the community and be available to the residents of Elk Grove, so being able to replace our current hospital in (Sacramento) will honor that commitment and we’re very excited about that continued important role that we play in Elk Grove.”
The current Sacramento hospital opened in 1973. Plans are to open the hospital on a 28-acre medical campus within seven years.
Baltz mentioned that, with the transferring of south Sacramento services to Elk Grove, Dignity will continue to own that property and decide how it will be used.
The old hospital will “most likely” be used for some type of Dignity Health services, Baltz added.
Balts told the Elk Grove Citizen that Dignity plans to engage its staff, as well as the community, through future public forums about the design process.
“We will be doing this more, where we’re out in the community talking about our plans, sharing information and gaining input,” she said. “Our next step is selecting the design-build firm and then spending 2021 in developing the construction documents to submit to California’s Office of Statewide Health Planning and Development.
Nationally, the Dodge Momentum Index moved 3.4% higher in July to 124.7 (2000=1000) from the revised June reading of 120.5. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the first (or initial) report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. During the month, the commercial component increased 5.3% while the institutional component was unchanged.
This month’s increase in the Dodge Momentum Index was the first in all of 2020. Since December 2019, the Momentum Index has lost 18% with most of the decline coming in April when the COVID-19 pandemic led to numerous business shutdowns across the country. The pullback has largely come from institutional planning, rather than commercial plans. State and local government revenues have been squeezed as declines in economic activity have led to a drop in tax revenue just as costs related to the pandemic have skyrocketed. The institutional component is currently 28% below its December 2019 peak and 21% lower than its year ago level. Commercial planning is down 13% from its January 2020 peak, but is actually 1% higher than its year-ago level.
In July, 13 projects each with a value of $100 million or more entered planning. The leading commercial projects were the first two phases of the Centene Healthcare headquarters in Charlotte NC, with each phase valued at $500 million.