July 13, 2026 — Capital constraints, rising construction costs, labor shortages, and increased patient volumes are reshaping how health systems approach and prioritize facility investments. For Rahul Tikekar, principal and senior vice president of Loring Consulting Engineers, Inc., the International Federation of Healthcare Engineering (IFHE) World Congress presents a unique opportunity for health systems from around the world to share strategies on how to effectively stretch capital funds.Â
From October 17 to 20, 2026, the IFHE World Congress brings leaders in healthcare facility design, construction, engineering, operations, and real estate management from across the world together to New Orleans. The event is hosted by the Association of Medical Facility Professionals (AMFP), the U.S. representative to IFHE, in partnership with EmeraldX and co-located event alongside the Healthcare Design (HCD) Conference + Expo.Â
Tikekar, who works with several of largest health systems in the United States, will moderate a not-to-miss session, “Healthcare at the Crossroads: Capital Pressure and the Future of Facility Investment.” Â
Wars, pandemics, recessions … there’s always going to be something that impacts financial resources, according to Tikekar. Today’s multitude of capital pressures – from higher construction costs, higher interest rates and lower reimbursement rates on one side to growing demands on aging infrastructure on the other – are also making capital investment tougher than ever. As a result, Tikekar says, it’s more important than ever to have clarity on what infrastructure improvements need to be prioritized. He encourages every organization to begin projects with a feasibility study to prioritize funds.Â
Tikekar encourages project teams to follow three principles as they plan projects. First, standardize across the network and stop reinventing the wheel. Instead, build in flexibility where change is likely. Second, he suggests shifting the focus from construction costs to lifecycle cost. Consider what the facility will cost to operate for 30 years as part of budget exercises. Third, he encourages designing for adaptability and resilience from Day One to make space for the rapid changes shaping healthcare today. By aligning design, construction, and operations around these three principles, health systems can achieve better performance with less capital.
Despite the challenges, Tikekar notes that creative funding opportunities are available. “In this current market there is a lot of opportunity for public private partnership and to work with utility companies to identify incentives for your program,” he says. He recently helped a healthcare organization install a 3,200-ton chiller plant featuring low-maintenance magnetic bearing chillers.
“With those energy-efficient chillers, variable primary pumping, and the variable frequency drives, we were able to get nearly a half a million dollar in incentives from the utility company,” he shares. “Some of these incentives can pay for the entire first cost of your equipment.”
In this environment, capital discipline is no longer optional, Tikekar says. As he puts it, “The health systems that succeed will be the ones that align design, engineering, construction, and operations around measurable performance, not just project delivery. Facilities are no longer just buildings – they’re long-term financial and clinical assets.”
Registration for the IFHE World Congress is now open. To register, and to learn more about scheduled educational sessions, visit AMFP.
