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

How Retail Design Can Improve the Healthcare Patient Experience

Healthcare facilities can adapt retail design principles to improve patient comfort, streamline check-in and reuse existing spaces.


Jefferson Health Breaks Ground on Lehigh Valley Hospital—Coopersburg

It is expected to open in late 2027.


Encompass Health Plans Second Small-Format Rehabilitation Hospital

The hospital is expected to open in 2028.


Rethinking How Healthcare Facilities Fund Construction Projects

Rising costs and competing priorities are driving healthcare organizations to explore new financing arrangements and construction strategies.


Winners Named for the 15th Annual Healthcare Design Awards

All winners will be honored and the Best of Competition and Transformation and Innovation Award recipients will be announced during a celebration on November 12.


 
 


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.