Case Study
Evaluating Building Designs for Future Changes – University Hospital Zurich New PET Centre
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Key Idea Description
Production Optimization in hospital infrastructure through strategic design flexibility, exemplified by the new PET Centre at the University Hospital of Zurich. This study leverages real options analysis to explore the economic and strategic benefits of incorporating adaptable designs that can respond to unpredictable future demands in medical treatments. By embedding flexibility in the initial design, the study aims to maximize the clinic’s operational efficacy and financial performance over its lifecycle, accommodating changes in technology and patient needs without extensive redesigns.
- Broad Area: Infrastructure, Real Estate, Hospitals, Nuclear Medicine
- Main issues of case: Selection of initial design, Flexibility limitations
- Main analytic topics: Analysis process, Binomial lattice, Economic Values, Managerial Flexibility, Implementation
Insights
- Flexibility in the design of hospital clinics, evaluated through the real options process, proves instrumental in minimizing service risks and maximizing net benefits, particularly crucial in uncertain healthcare landscapes such as those seen during the COVID-19 pandemic.
- Incorporating flexibility into initial clinic designs significantly enhances their estimated net benefits over the clinic’s lifetime, highlighting the strategic advantage of adapting to dynamic treatment demands and optimizing resource allocation in healthcare infrastructure planning.
Training
Relevant lectures:
- Paradigm change in engineering systems and planning
- How to optimise design and decision-making under uncertainty
- How to manage the design process
Gallery
Abstract
Summary
Introduction to Flexibility in Hospital Design for Uncertain Future Needs
This technical study by Esders, Martani, and Adey discusses the design of the new PET Centre at the University Hospital of Zurich, highlighting how flexibility in the initial design can accommodate unpredictable future changes in treatment demand, as emphasized by the COVID-19 pandemic. The study uses the real options methodology to rigorously identify the best building design considering potential future adaptations.
Understanding the Project’s Scope
The project focuses on the design of a PET centre, aiming to optimize its layout for future flexibility due to uncertain demands in nuclear medicine. This approach recognizes the volatile nature of medical advancements and demographic changes which can significantly alter service requirements.
Financial and Technical Analysis (Net Present Value)
- Flexibility in Design: The study compares three designs—basic, robust, and flexible—with the flexible design estimated to yield a net benefit of 167.18 million CHF over the clinic’s lifetime, which is notably higher by 20% and 2.2% compared to basic and robust designs, respectively.
Flexibility in Hospital Design
The paper evaluates different building designs, emphasizing that including flexibility in the initial design phase can greatly enhance the hospital’s ability to adapt to future changes without significant costs or disruptions:
- Basic Design: Minimal adaptability, cheapest upfront cost, but costly to modify later.
- Robust Design: Accommodates maximum expected needs initially, expensive and less adaptable.
- Flexible Design: Optimally balances initial costs with adaptability, offering the best return on investment by allowing easy modifications as future needs evolve.
The flexible design’s higher initial investment is justified by significantly higher expected net benefits compared to the more rigid designs, especially when factoring in the potential for future adaptations which are highly likely given the sector’s rapid technological advancements.
Implications for Hospital Infrastructure Development
This case study underscores the importance of strategic planning in hospital design, advocating for a proactive approach in accommodating future technological and operational shifts. By integrating real options analysis into the design process, healthcare facilities can better manage risks associated with future uncertainties, thereby enhancing their long-term service delivery and financial stability.
Conclusion
The study concludes that adopting a flexible design for hospital infrastructure, especially in departments like nuclear medicine, provides significant economic and operational benefits. It allows the facility to adapt more readily to future changes in treatment technology and patient demographics, ensuring sustained service efficiency and effectiveness.