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

What Lies Ahead for Healthcare Facilities Managers

Staffing shortages, rising regulatory scrutiny and accelerating adoption of AI are converging to reshape the way healthcare facilities are managed.


What's in the Future for Healthcare Restrooms?

Workforce shortages, rising hygiene expectations and connected technologies are pushing healthcare restrooms beyond basic utility.


Hammes Completes the Moffit Speros Outpatient Center

The new outpatient center will provide infusion services, clinical space, radiology and radiation oncology.


The Top Three Pathogens to Worry About in 2026

Key viruses to watch out for and how to prevent them.


Blackbird Health Opens New Pediatric Mental Health Clinic in Virginia

It offers comprehensive evaluations, therapy and medication management under one roof.


 
 


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.