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

The OR HVAC Puzzle: Why Individual Systems Are on the Rise

Extra penetrations, tight clearances and strict humidity needs—design experts explain what it really takes to plan dedicated units for each operating room.


Sutter Health Announces Plans for New Santa Clara Medical Center

Sutter projects the medical center will open in late 2031.


Sanford Health Receives $300M Gift for Black Hills Medical Center Campus

Construction is scheduled to begin in 2027 with completion expected by 2030.


Wanted: Scientific Standard for Hospital Cleaning

No accepted criteria exist for defining a surface as clean using microbiologic methods.


NLCS Strengthens Safety and Compliance with Comprehensive Electrical Program

Case study: A renewed partnership with Siemens helps the senior living provider meet NFPA 70B standards, reduce risk, and enhance reliability across its communities.


 
 


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.