Hospital Space Planning

Several factors in the current healthcare environment and the development of major hospital facilities increase the importance of space planning and expand the role of the manager in space planning. These factors include:

1. The large capital needs of the healthcare industry,
2. Increasing opportunities for capital expansion,
3. Inflation in construction costs,
4. Concerns regarding excess capacity,
5. Possible elimination of tax-exempt financing,
6. Increasing hospital technology,
7. Increased sophistication in space planning.

In the space planning process, the financial manager should assure that the department directors of the business office, admitting, the credit office, data processing, and other areas of the financial manager's responsibility are involved in the planning process. A broader role is to gauge the effect of a major facility program on the hospital's capital and operating costs and to monitor project cost.

Areas becoming more important in space planning include:
1. Integration of major capital projects,
2. Reorganization,
3. Debt capacity,
4. Use of private development funds,
5. Project phasing.

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