First few Article Sentences
Since 2007, California hospital construction expenditure has increased from $2 billion to $9 billion annually (California Healthcare Foundation). This surge in costs is expected to continue for the next 15 years, as hospitals strive to comply with seismic regulations and modernize physical infrastructure. The challenging economic environment and uncertain financial impact of health reform will compel hospital leadership to aggressively identify mechanisms to minimize construction costs during the next two decades. One valuable cost control mechanism is the Owner Controlled Insurance Program.