Protecting Your Healthcare Projects Amid Tariff Uncertainty

Authors: Goran Musinovic, J.D., CHC and Emily Trosclair

As tariff proposals continue to fluctuate amid ongoing legal and trade disputes, experts predict significant cost pressures for healthcare development projects across the United States. For executives overseeing expansions, renovations, or FF&E procurement, the message is clear: uncertainty is the constant—and it’s already affecting pricing and timelines. That uncertainty, however, does not mean that healthcare providers should suspend projects altogether. After all, projects need to be constructed, and the tariffs will likely remain in some form for the foreseeable future. Instead, healthcare providers should adapt to the changing economic landscape and position their projects for success.

Shifting Headlines, Enduring Impacts

Partial Tariff Pause: In April 2025, the Trump administration announced a 90-day delay on proposed “reciprocal tariffs” for most nations. However, existing tariffs on steel, aluminum, and key imports remain in place.

Medical Equipment Costs: The pharmaceutical sector has seen some signs of relief, but medical device tariffs continue to drive FF&E prices up by 20–30%. Johnson & Johnson, for example, expects $400 million in tariff-related costs in 2025—primarily tied to medical technology imports from China.

Policy Signals Shift—Market Reactions Lag: While public messaging has softened, supplier pricing continues to reflect caution—embedding contingencies and lead-time buffers in response to ongoing volatility.

Why It Matters for Healthcare Providers

Effective capital project pipelines depend on predictable pricing, reliable vendors, and fast-moving approvals. Tariff volatility can erode all three.

These ripple effects particularly threaten:

• Outpatient facility rollouts, such as Ambulatory Surgery Centers (ASC) and Free-Standing Emergency Departments (FSED), with tight delivery schedules
  • Often utilize modular construction methods and imported components, making them particularly sensitive to pricing fluctuations and delivery disruptions.
• Inpatient renovations tied to compliance or equipment lifecycles
  • Revolve around the replacement of critical systems—like diagnostic suites and life safety infrastructure—that depend on tariff-sensitive, foreign-manufactured parts.
• Long-range capital forecasts with fixed funding thresholds
  • Multi-year plans are built on board-approved budget ceilings, leaving limited room to absorb unanticipated cost spikes from tariffs or supply chain disruptions.

What You Can Do Now

While no one can control the global trade climate, you can position your projects to absorb shocks and stay on track. Our healthcare clients are proactively:

• Locking material pricing early in high-risk scopes
• Building flexible bid packages with supplier alternates
• Strategically sequencing approvals and procurement
• Prioritizing scope areas that drive ROI while keeping long-term flexibility
• Evaluating contracts to identify anticipated future issues and negotiating terms that will address how those issues will be resolved

Our Role

At RTG, we focus on guiding healthcare providers through complex healthcare development project challenges. Our expertise helps healthcare providers keep projects on schedule and within budget, even amid fluctuating economic conditions.

Let’s talk about how to navigate this moment with foresight—not fear.

Ready to safeguard your healthcare projects from tariff uncertainty? Connect with RTG experts Dan Maxwell, Vice President of Development Services, or Lee Williams, Director of Capital Projects, today to discuss strategic solutions tailored to your needs.