As hospitals and health systems emerge from the pandemic-era pause on capital projects, leaders now face a difficult duality: how to fund growth while maintaining and modernizing aging infrastructure.
From deferred facility upgrades to urgent service line expansions, the list of capital needs is long—and financial flexibility is limited. Rising construction costs, tightening margins, and increasing complexity in the capital markets have forced many systems to rethink their approach.
To navigate this challenging environment, Realty Trust Group (RTG) has released a new white paper: Building a Stronger Tomorrow: Strategic Capital Planning for Health Systems.
Moving From Crisis Response to Strategic Planning
COVID-19 placed health systems into reactive, short-term decision-making cycles. Now, many are seeking to shift to long-term, system-wide strategic capital planning.
RTG’s white paper outlines a disciplined, repeatable process to help organizations:
- Prioritize both routine and strategic capital needs
- Align capital planning with mission and growth objectives
- Increase transparency and buy-in across leadership teams
- Identify funding solutions that balance risk, speed, and sustainability
Inside the Strategic Capital Planning Process
The white paper introduces a dual-focused approach that balances immediate operational needs with long-term investments. It includes best practices for:
- Strategic Alignment – Tying capital allocation to mission, vision, and market strategy
- Needs Assessment – Evaluating infrastructure, clinical, and growth needs
- Stakeholder Engagement – Ensuring visibility and accountability across service lines
- Financial Forecasting – Identifying debt capacity, ROI potential, and funding gaps
- Prioritization Framework – Disciplined approach with weighted criteria to evaluate projects
- Execution Plans – Building governance, accountability, and success metrics
It also highlights the most common capital planning pitfalls—from weak governance to misaligned priorities—and how to avoid them.
Exploring Capital Solutions Beyond Traditional Debt
In today’s environment, the ability to execute growth initiatives often depends on the flexibility and creativity of your capital strategy.
The white paper explores real estate-based solutions that go beyond traditional bond financing, including:
- Sale-leaseback transactions
- Credit tenant leases and charitable foundation models
- Physician syndication models
- Joint venture opportunities
- Portfolio recapitalization strategies
A Roadmap for Sustainable Growth
Health system capital planning is no longer just about spreadsheets—it’s about aligning investment decisions with strategic intent.
Health systems that adopt a multi-year, data-driven, and mission-aligned capital strategy will be best positioned to:
- Drive physician alignment
- Improve operational efficiency
- Expand access to care
- Preserve debt capacity
- Meet rising patient demand
- Deliver long-term community impact
Download the Full White Paper
Access the full white paper to discover:
- A step-by-step strategic capital planning framework
- Innovative funding models tailored for healthcare growth
- Tips for avoiding common planning failures
- How to balance financial discipline with market agility
Download Building a Stronger Tomorrow: Strategic Capital Planning for Health Systems
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