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

What 'Light' Daily Cleaning of Patient Rooms Misses

Most environmental services workers still clean as if they were wiping dust off a countertop, not disrupting a living, structured community.


Sprinkler Compliance: Navigating Code Mandates, Renovation Triggers and Patient Safety

As CMS deadlines approach and renovation projects accelerate, healthcare facility managers must understand how NFPA 101, state fire codes and sprinkler design strategies intersect.


MUSC Board of Trustees Approves $1.1B South Carolina Cancer Hospital

Research and education are intentionally embedded in the hospital’s design, with dedicated spaces for scientific collaboration, clinical investigation and training.


Study Outlines Hand Hygiene Guidelines for EVS Staff

Researchers find that current guidelines for hand hygiene don’t include EVS workers and suggest indicators to fill that gap.


McCarthy Completes $65M Sharp Rees-Stealy Kearny Mesa MOB Modernization

The completed tenant improvement includes approximately 100,000 square feet of improved space across two buildings and represents an investment of $65 million.


 
 


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.