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

Building Disaster Resilience Through Collaboration

The ability to respond quickly and recover effectively depends on the strength of an organization’s external bonds.


Amae Health Expands to New York City

This expansion brings its integrated care model to serve individuals with complex mental health conditions.


Hospital for Special Surgery Opens Two New Facilities in New Jersey

The two facilities are a full-service outpatient center and a surgery center.


Should We Be Testing Toilet Water in Patient Restrooms?

Research suggests transmission of Legionella pneumophila through toilet flushing should be considered when investigating a Legionnaires’ disease case.


Healthcare Union Petitions for Increased Staff Safety at HCA Florida Hospitals

The petition follows a recent nurse assault and 160 calls to law enforcement this year at one hospital alone.


 
 


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.