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

Making Multi-Site Lighting Upgrades Work

Success requires a program structure that connects audits, financial analysis, rebate administration, procurement, scheduling and closeout documentation.


Designing a Positive Care Destination for Children

The new Mary Bridge Children’s Hospital reimagines the healthcare experience to create an environment that feels welcoming from arrival to discharge.


Blackbird Health Opens 10th Clinic in Pennsylvania

The Bala Cynwyd clinic represents Blackbird Health's 13th location overall.


Healthcare Construction Infection Control: Essential CDC Guidelines for Active Facilities

Construction and renovations happen, but that doesn’t mean infection prevention can take a backseat. The CDC has some recommendations for maintaining best practices during construction.


Protecting the Most Vulnerable: Inside the NICU

SSM Health St. Mary’s Hospital leaders share how maintaining power, air quality and essential systems helps protect patients during their most vulnerable moments.


 
 


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.