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

Navigating the Healthcare Real Estate Landscape in 2025

Balancing cost-optimization with the need to expand facilities to meet patient care demands and location of facilities impacting employee sentiment are two key trends.


UI Health Care Acquires 20 Mission Cancer + Blood Clinics in Iowa

Mission’s assets were officially purchased on December 31, 2024.


Dignity Health Lassen Medical Clinics Struck by Data Breach

Some information in the Lassen Clinics' records may have been accessed or acquired by an unauthorized third party.


On-Demand Training to Meet Managers' Evolving Needs

Digital training options offer benefits that include increased flexibility and expanded access to critical information.


PIH Health Facing Lawsuit Over December 2024 Ransomware Attack

The lawsuit alleges negligence, invasion of privacy and other complaints stemming from the ransomware attack.


 
 


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.