Regardless of whether people believe their own community will be affected (but if the swamped call boards of the Center for Disease Control are any indication many are concerned), from a management consultant's point of view this potential health threat can be turned into an organizational exercise that is well worth a manager's time.
Even if the swine flu never hits your community, here are four areas (it seems to me!) where it is useful for every manager to have in place something in writing.

FIRST: Long and short-term individual work plans--Is every one of your staff able to put in writing what their personal long term (quarterly and yearly) and short term (monthly and weekly) goals and objectives are? If so, then it might be useful to go the next step and examine what they need to accomplish each. How much of their work plan is dependent on others or on having access to office resources and how much could be done from their home using just their own resources that they currently have? If they had to work from home, what additional resources would they need to be effective?

SECOND: Reporting procedures. This is not something you might normally need to worry about in a small office environment, but in larger organizations when people are not in close physical proximity or when employees are telecommuting, reporting expectations should be spelled out. To whom do they report (perhaps this is different depending on the project or goal involved), how (written may be preferred because there is less chance of misunderstanding), and when or how frequently. A huge amount of trouble can be avoided when such expectations are spelled out ahead of time.

THIRD: Policy on expense reimbursement. Do your current policies need to be re-thought? Which expenses are covered and which not when employees work away from the office? Are there limits over which special permission is needed, if so what are they and how does one obtain this permission? When can employees expect to be reimbursed--immediately, on pay-day, at the end of the month? Are cash advances permitted, if so how are these managed?

FOURTH: What are the "essential" positions that must be fulfilled at the office and how can these positions be filled if the normal people filling them should not be able to? Perhaps you can develop an alternates list--in which case every person on that list will need to be familiar with what is expected of them. These responsibilities need to be described and potential problems anticipated.

Jotting such things down should not be too much of a distraction for well-run organizations. Even if quarantines never impact our communities, aren't these useful things for all of us to think about?