Capital Planning and the Role of Risk

Incorporating risk helps managers create a capital plan that allows for effective allocation of capital

By Dan Hounsell


In addition to providing a day-to-day plan that allocates the resources needed to operate and maintain buildings and systems, healthcare facilities managers also are responsible for developing a successful capital plan for facilities. 

A capital plan that does not account for risk essentially undermines an organization’s ability to factor all potential costs into the equation, according to Health Facilities Management. Capital planning efforts must align with the organization’s vision, mission and strategy. So incorporating a risk-based capital plan is paramount to success. 

Managers can evaluate risk by using NFPA 99, Health Care Facilities Code, which defines risk in four categories:

  • Category 1: Systems in which failure is likely to cause major injury or death of patients or staff.
  • Category 2: Systems in which failure is likely to cause minor injury to patients or staff.
  • Category 3: Systems in which failure is not likely to cause injury to patients or staff.
  • Category 4: Systems in which failure would have no impact on patient care or staff.

By using this methodology, managers can create a capital plan that allows for the most appropriate allocation of capital over the life of the building.



May 6, 2021


Topic Area: Construction


Recent Posts

On the Lookout: The Software Supply Chain as a Healthcare Cyberattack Vector

Staying watchful of third-party software vendors and their activities is critical for healthcare cybersecurity.


Hackensack Meridian Health & Wellness Center at Clifton Opens

The Clifton center expands health care access in Passaic County by reducing barriers such as travel and wait times.


Suffolk Breaks Ground on Expansion of White Plains Hospital

The 10-story, approximately 500,000-square-foot expansion is slated to open in 2028.


EVS Leadership Culture Critical in Preventing Hospital-Acquired Sepsis

Cleaning is an essential yet complex component for the prevention of HAI-induced sepsis.


Man Dies by Suicide in Emergency Department Waiting Room at Kansas Hospital

No staff or patients were harmed, and the man was alone in the waiting area when he shot himself.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

 
 
 
 

Healthcare Facilities Today membership includes free email newsletters from our facility-industry brands.

Facebook   Twitter   LinkedIn   Posts

Copyright © 2023 TradePress. All rights reserved.