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Strategic facility planning improves capital decision making.

J R Reeve1

  • 1Christner, Inc., St. Louis, Missouri, USA. john.reeve@christnerinc.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|March 22, 2001
PubMed
Summary
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A Midwestern integrated delivery system (IDS) optimized its facility portfolio through market analysis and facility assessments. The strategy involved reallocating space for ambulatory care and replacing underperforming facilities.

Area of Science:

  • Healthcare Administration
  • Strategic Facility Planning
  • Health Services Management

Background:

  • Healthcare organizations face increasing pressure to optimize facility utilization and investment.
  • Integrated delivery systems (IDS) require strategic planning to align facilities with evolving market demands and service needs.
  • Evaluating existing facility portfolios is crucial for efficient resource allocation and future development.

Purpose of the Study:

  • To conduct a strategic facility-planning process for a large, Midwestern integrated delivery system (IDS).
  • To evaluate the existing facility portfolio and determine optimal future investment allocation.
  • To align facility infrastructure with projected market demands and service line growth.

Main Methods:

  • Assembled a dedicated facility-planning team.

Related Experiment Videos

  • Performed comprehensive market analysis to forecast future service demands.
  • Assessed individual facilities based on capacity, utilization, condition, and growth potential.

    • Main Results:

    • Identified specific service areas requiring facility expansion based on market analysis.
    • Evaluated all facilities using criteria including capacity, highest and best use, condition, and development opportunities.
    • Developed a strategic plan that included shifting space from inpatient to ambulatory care services.
    • Demolished and replaced 11% of facilities identified as being in the worst condition.

    Conclusions:

    • Strategic facility planning is essential for healthcare systems to adapt to changing market dynamics.
    • Reallocating resources and replacing outdated infrastructure are key components of facility optimization.
    • A data-driven approach to facility assessment ensures alignment with organizational goals and patient care needs.