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Healthy Practices: Interior Design Healthcare Giants 1-40

Laura Girmscheid, Wing Leung, and Sheila Kim-Jamet -- Interior Design, 11/1/2008

Healthcare Design GiantsWe're noticing a trend: Of the 40 firms that compose our list of Interior Design Giants that find benefit in the health-care industry, 16 have been designing wellness facilities for 50 years or more. Furthermore, the average number of years all these firms have been honing skills in health-care design is 47. Clearly, expertise in this specialized field pays. (For ideas on how Giants are diversifying their business into a variety of areas, see page 125.) Fees from health-care projects accounted for 46 percent of each health-care Giant's total fees. Health-care design fees rose 20 percent since last year, and fees are expected to rise 6 percent in the coming year. The firms combined to work on a total of more than 105 million square feet of health-care space in the last year. Hospitals are the biggest revenue generator, contributing an average of 64 percent of a firm's total design fee income. Outpatient facilities, at a far distant second, typically contribute 12 percent of a firm's revenue. Understandably, bigger, better, brighter, and newer is the name of the health-care game: The majority (62 percent) of these projects are new construction whereas 38 percent are renovations. In an industry where success can literally be a matter of life or death, new technologies—and the space to accommodate them—are often crucial to currency. In these cases, sustainability needs to be built-in from the ground up.

See the 2007 Healthcare Giants.
See the full Interior Design Giants rankings.

Rank 2008 Firm (Location | Website) Health-Care Design Fees (millions) Health-Care Work Installed
Value (millions) Sq. Ft. (millions) Rank 2007
01 HDR (omaha | hdrinc.com) $50.982 $4,646.67 5.87 1
02 Perkins + Will (chicago | perkinswill.com) $32.354 $961.43 7.11 2
03 Perkins Eastman (new york | perkinseastman.com) $27.405 $456.75 2.13 4
04 Anshen + Allen (san francisco | anshen.com) $25.492 $614.69 1.87 3
05 Cannon Design (new york | cannondesign.com) $19.378 NR 2.57 5
06 NBBJ (seattle | nbbj.com) $17.840 NR NR 6
07 PageSoutherlandPage (houston | pspaec.com) $17.750 NR NR 7
08 HKS (dallas | hksinc.com) $14.580 $128.50 5.80 9
09 HOK (st. louis | hok.com) $13.960 $55.00 22.00 15
10 Shepley Bulfinch Richardson & Abbott (boston | sbra.com) $13.943 $13.80 3.90 8
11 Zimmer Gunsul Frasca Architects (portland, or | zgf.com) $11.368 $600.00 1.75 11
12 Leo A Daly (omaha | leodaly.com) $11.000 $144.32 1.50 25
13 Hammel, Green and Abrahamson (minneapolis | hga.com) $10.500 NR NR 12
14 Karlsberger (columbus, oh | karlsberger.com) $10.400 $1,054.00 3.45 13
15 SmithGroup (detroit | smithgroup.com) $9.541 NR 2.66 10
16 WHR Architects (houston | whrarchitects.com) $9.323 $21.35 3.32 16
17 Anderson Mikos Architects (oakbrook terrace, il | andersonmikos.com) $8.860 $69.13 4.00 19
18 Granary Associates (philadelphia | granaryassoc.com) $8.583 NR NR 14
19 RTKL (baltimore | rtkl.com) $8.215 $75.24 1.85 -
20 Flad Architects (madison, wi | flad.com) $8.213 $436.50 2.30 20
21 Ballinger (philadelphia | ballinger-ae.com) $8.200 $54.10 0.17 26
22 TRO Jung/Brannen (boston | trojungbrannen.com) $8.170 $585.00 2.30 21
23 Francis Cauffman (philadelphia | franciscauffman.com) $7.735 $700.00 3.00 18
24 DesignGroup (columbus, oh | dgcolumbus.com) $7.580 $188.17 1.46 -
25 Tsoi/Kobus & Associates (cambridge, ma | tka-architects.com) $7.390 $55.95 0.31 30
26 Array Healthcare Facilities Solutions (king of prussia, pa | arrayhfs.com) $6.827 $264.00 1.75 28
27 Loebl Schlossman & Hackl (chicago | lshdesign.com) $6.631 $110.52 0.42 22
28 EwingCole (philadelphia | ewingcole.com) $5.880 $270.00 1.50 27
29 Lawrence Group (st. louis | thelawrencegroup.com) $5.434 $89.66 1.40 29
30 Gresham, Smith and Partners (nashville | gspnet.com) $5.281 $100.73 4.72 17
31 Harley Ellis Devereaux (southfield, mi | harleyellisdevereaux.com) $5.008 $270.00 1.67 24
32 Ratcliff (emeryville, ca | ratcliffarch.com) $4.891 NR 0.78 31
33 RMJM Hillier (new york | rmjmhillier.com) $3.777 $17.00 0.64 39
34 JRS Architect (mineola, ny | jrsarchitect.com) $3.524 $23.00 0.16 33
35 OWP/P (chicago | owpp.com) $3.056 NR 1.66 23
36 Maregatti Interiors (indianapolis | maregattiinteriors.com) $2.880 $110.00 6.75 32
37 VOA Associates (chicago | voa.com) $2.660 $127.00 1.26 -
38 Ronald Schmidt & Associates (englewood, nj | rsaaia.com) $1.873 $120.00 0.32 37
39 Gallun Snow Associates (denver | gallunsnow.com) $1.633 $250.50 1.40 40
40 Plunkett Raysich Architects (milwaukee | prarch.com) $1.496 $57.00 1.82 -

Fee Income % of Fees
Hospital $274,612,386 64%
Outpatient facility $52,231,751 12%
Medical office $41,661,039 10%
Clinic $19,445,587 4%
Senior Living facility $8,422,652 2%
Rehabilitation facility $8,479,180 2%
Mental health facility $7,913,902 2%
Assisted Living facility $3,109,033 1%
Skilled nursing facility $5,200,564 1%
Hospice $1,808,892 0.4%
Other $6,726,816 2%
TOTAL $429,611,802 100%

Agree Disagree
Operators of today's health-care facilities understand that design is a healing tool. 100% -
Sustainability is becoming an integral part of designing health-care facilities. 100% -
More health-care clients are interested in integrating "green" products into their health-care facilities. 98% 2%
Health-care operators are more willing to invest in design than previously. 95% 5%
There is now more crossover between hospitality and health care. This represents more opportunity for firms like ours. 93% 7%

Design Fees % of Fees
Health care $429,611,802 46%
Corporate Office $195,573,298 21%
Hospitality $67,974,262 7%
Retail $5,553,607 1%
Government $51,774,444 5%
Education $84,394,125 9%
Residential $13,731,303 1%
Transportation $5,307,072 1%
Cultural $7,980,434 1%
Technology $58,019,850 6%
Other $22,289,347 2%
TOTAL $942,209,543 100%

% of Firms
New Construction 62%
Renovation 38%
Domestic projects 96%
Overseas projects 4%

1. NBBJ
2. Perkins + Will
3. HOK

MidWest 49%
West 49%
South 46%
Northeast 39%
Asia 26%
Middle East 26%
Canada 21%
Europe 8%
Mexico 5%
Pacific Rim 5%
Caribbean 3%

 

Methodology

The annual business survey of the health-care Interior Design Giants ranks the largest design firms by health-care design fees for the 12-month period from July 2007 to June 2008. Health-care design fees include those attributed to:

  1. All health-care interiors work.
  2. All aspects of a firm's health-care design practice, from strategic planning/programming to design/project management.
  3. Fees paid to a firm for work performed by employees and independent contractors who are "full-time staff equivalent."

Health-care design fees do not include revenues paid to a firm and remitted to subcontractors that are not considered full-time staff equivalent. For example, certain firms attract work that is subcontracted to a local firm. The originating firm may collect all the fees and retain a management or generation fee, paying the remainder to the performing firm. The amounts paid to the latter are not included in fees of the collecting firm when determining its ranking. The data were compiled and analyzed by the Interior Design market research staff in New York: Laura Girmscheid, research manager, and Wing Leung, research director.


Photo by Anton Grassl.

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