Michigan Nursing Home Administrator (NHA) Practice Exam

When initiating a construction project for a health facility, what is the minimum capital expenditure that necessitates a construction permit?

1. $500,000

2. $750,000

3. $1,000,000

4. $1,500,000

The correct answer is: $1,000,000

The correct answer is based on regulatory standards that define financial thresholds for construction projects within health facilities. In many jurisdictions, including those pertinent to nursing homes and health facilities, a capital expenditure of $1,000,000 is commonly established as the minimum amount that necessitates obtaining a construction permit. This regulation is intended to ensure that significant investments in facility improvements meet safety, zoning, and building codes, thereby facilitating oversight and compliance with health regulations. Understanding these thresholds is crucial for nursing home administrators, as failing to secure the necessary permits for projects above this financial threshold can lead to legal complications, financial penalties, and delays in project completion. Moreover, adhering to these regulations reflects a commitment to maintaining the quality and safety standards required within health facilities. The other figures listed do not align with this established regulatory limit, making them inappropriate for this context. Thus, it is important for nursing home administrators to be aware of such thresholds and ensure compliance with local laws when planning construction initiatives.