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

Life Sciences and Healthcare: Reshaping Institutional Design

Examining the way leaders address the increased pressures and prolonged project timelines can reveal best practices and delivery models.


Arnprior Regional Health Upgrades Building Controls to Improve IEQ

Case study: They wanted to improve the hospital facility’s IEQ to support patient care and reduce long-term operating costs.


Oregon Health & Science University Opens Vista Pavilion

Vista immediately adds 128 new inpatient beds; once it is fully built out, it will expand OHSU Hospital’s capacity by about one-third.


The Growing Crisis in Rural Healthcare Facilities

Outdated buildings, reactive planning and complex funding are forcing rural leaders to rethink their strategies.


A Cleaning Alternative: The Benefits of Steam Technology

Cleaning is essential in healthcare facilities, but traditional disinfectants have harmful chemicals. Researchers say that steam technology may be the solution.


 
 


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.