PLANNING

Hospital Planning: The What, Where, When, and Why?

Emily R. Mowry, BE,Programmer, Biomedical Specialist
HFR Healthcare Division, Brentwood, TN

James G. Easter, Jr., MA, FAAMA
Diplomate in Healthcare Administration, Principal & Director of Planning
HFR Healthcare Division,Hospital Planning

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The economics of healthcare planning can either make or break a hospital. In addition to codes and regulations, hospital administrators have to consider the Return on Investment (ROI) for upgrading their facilities. The question we have to ask is what is the most cost efficient method of expansion: adding or renovating facilities?

The hospital administrator realizes that the hospital is part of the community, and the input from physicians, staff, and community leadership is vital to survival. If leadership chooses to build a new hospital based solely on financial feasibility numbers, there is no guarantee that the new hospital will bring in the same amount of business as the old one.

​On the other hand, many small hospitals cannot function properly simply due to the age and obsolete condition of the current building. Building a new hospital may be the more expensive route, but it may dramatically improve the efficiency and quality of health care over time.

​In this study, we take a look at one example of the hospital planning process in which we answer these important questions: Should we stay and expand, or should we relocate?   

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