P2S Thought Leadership Series
FEATURING Zoltan Mezei
Healthcare Market Leader
Healthcare systems across the country are rethinking how they modernize and expand their facilities. Rising patient demand, evolving treatment models, and increasingly complex medical equipment and technologies are driving the need for innovative, flexible and resilient MEP design in healthcare environments. And just like healthcare providers treating patients, challenges abound when designing building systems for healthcare facilities.
Healthcare Market Leader Zoltan Mezei has over 28 years of experience in the building engineering field. He’ s an experienced project manager for large-scale projects and has led MEP design for HCAi( the Department of Healthcare Access and Information) hospitals, outpatient clinics, and specialized care centers throughout the West Coast. We spoke to Zoltan to understand the current conditions facing healthcare clients and the key drivers in healthcare MEP design today.
Zoltan, we’ re excited to learn your thoughts on the current state and the near future of healthcare facilities. Can you give us a high-level overview of what you’ re seeing in your market?
The healthcare market is under serious pressure because the demand for care keeps climbing, driven by the aging population and chronic diseases. As hospitals race to keep up with rapid technological innovations and evolving HCAi regulations, they need to invest in infrastructure, digital systems and compliance with today’ s code.
But there’ s a catch. While the large systems can absorb these costs, smaller hospitals are struggling. Construction costs in California are among the highest in the nation, and reimbursement rates, especially for Medicaid, often don’ t cover the full cost of care. In fact, nearly one in five rural hospitals in the state are operating at a loss. But it’ s not just California; smaller hospitals throughout the country are also in a difficult financial situation. It’ s a tricky balancing act. Modernize or fall behind, but doing so without going under is the real challenge.
Which kinds of facilities are providers prioritizing investing in right now? We hear there’ s been a move towards more outpatient centers. Have you experienced this in your work?
Yes, healthcare providers are prioritizing investment in outpatient care, telehealth and digital infrastructure, behavioral health and facility modernization to meet rising demand. In California, there is also regulatory pressure from the 2030 seismic upgrades.
Outpatient revenue has increased 31 % over the three years, outpacing inpatient revenue growth of 13 % driven by ambulatory surgery centers, urgent care clinics and telehealth hubs. There is a shifting model of care, and providers want to move away from inpatient because there’ s more money to be made in the outpatient setting. Also, 85 % of providers report a positive return on investment from virtual care programs, AI-powered diagnostics, remote monitoring and hybrid care models. Many clients are having the telecom and data for their facilities designed with telehealth suites and smart tech integration.
California is in the middle of a once-in-a-generation transition of its behavioral health systems to better address skyrocketing mental health needs. In LA and bigger cities, there is a severe shortage of psychiatric beds, especially for youth and the unhoused population. The state is stepping up in a big way, thanks to Proposition 1, where voters approved a $ 6.4 billion mental health bond in 2024. $ 4.4 billion of those funds are being used for competitive grants through the Behavioral Health Continuum Infrastructure Program( BHCIP).
4 P2S MAGAZINE SUMMER 2025