Risk Management Programs in Healthcare Organizations - Essay Example

Risk Management Program in Healthcare Organization Introduction The idea of risk management previously has been applied in banks and insurance companies. However, the activities that relate management of risk has always but had no specific term. Risk management practices were introduced into the healthcare sector in order to respond to rising national malpractice insurance costs. However, risk management can be defined as the process of systematic identification, evaluation, and addressing potential and actual risk that has occurred (Bunting & Benton, 2006). Therefore, the paper attempts to discuss the risk management program in healthcare organization. Step necessary for Presentation of a Risk Management Program to New Employees a) Identify situations in the healthcare organization that might result in an incident that would lead to losses of finance. (b)Evaluating of reports of the incident for at least six months and compare the information that is available on incidents in other healthcare. This is for the employees to be in a position of identifying situations in the hospital that are most likely result to an incident. (c)They should be showed on how to eliminate needlessly dangerous procedures that are performed on the premises, sale of equipment that can lead to product liability suits. (d)Reducing risks so that the organization can feel comfortable in instituting an insurance mechanism that is funded internally and operated. (e)Insurance cover through the better option among the captive, commercial, and self-insurance by itself or in a combination in order to meet the requirements of the hospital in the most reliable and cost-effective manner Presentation for the Compliance with the American Society Health Care Risk Management (ASHRM) The American Society for Healthcare Risk Management (ASHRM) was previously known as American Society for Hospital Risk Management. It was formed in the year 1980s in order to respond risk management interest that had begun to develop amongst healthcare organizations. Since its induction, healthcare risk management developed from a discipline that was mainly focusing on medics’ profession liability issues. It transformed to a professional that was concerned with all kind of the potential risks that associates with losses that face a health care organization(Grayson, 2007). Therefore, healthcare organization is required to manage care organizations, ambulatory care as well as long - term care. In addition, providers of health care are supposed to understand and realize the value of effective risk management and required to develop programs for risk management that are formal. However, management of risk is moving towards the concept of enterprise risk management and it considers the myriad complexity of legal, politics, business, regulatory, and finance risks that face healthcare organizations. As risk management is moving towards strategically orientated and risk management professions are supposed to prepare themselves for new roles, for instance, chief risk officers. Such factors as diversity in working experience, finance, broad-based business, and technical skills are valued in healthcare management risk professions than before. In addition, another development needed in risk management is the return focus on safety of the patient (Grayson, 2007). Proposed Recommendation for Inclusion in the Program or Change to Improve the Program It is recommended that the key to a successful risk management program is the loss control program. All the required steps are supposed to be undertaken to have an effective loss control program through institutional documentation, education, and commitment. This would develop a functional organizational model, improve communications, and continued evaluation. Also, incident reporting should be an integral sector of risk management. The reporting of incidents to a member of staff who is senior is more likely, irrespective patient of outcome, especially when the incident is involving the violation of a protocol(Lawton & Parker, 2002). It appeared that, although the reports of an incident on an employee who is a senior member are unlikely, especially among doctors, it is most likely when the incident represents the violation of a protocol with bad results. The medicine culture that is emphasizing on professional autonomy and self-regulation cannot foster the reporting of mistakes. Management of risk is a systematic process of controlling incidents, which are not consistent with the normal practices and activities of the healthcare. Therefore, reporting of an incident should be the foundation stone of a sound system of risks management. In viewing the rapid changes in all facets of the healthcare sector, there is a necessity to continue strengthening both monitoring and evaluation of the risk management program. Some of the required areas for strengthening include communication with peers at local, regional, state, and national organizations to ensure that there is improvement in the program at the hospital/ health care facility(Lawton & Parker, 2002). Administrative Process of Risk Management Programme If an organization has begun to organize its risk management program or is seeking to expand an existing program, the administrative needs to follow a process in risk management program. The administrative in healthcare organization should ensure that there is maintenance of respect and sufficient authority. This is for the enactment of the changes in policies, procedures, clinical practice, and workers in order to fulfill the purpose and necessity of the risk management program. In addition, it the risk manager needs deal every day with highly confidential and sensitive data that is affecting directly the organization’s finance status and public image. The risk management professions are mandated to coordinate the risk management activities with the medical staff members, as well as parties from out and all workers at all levels of the organization( Bunting, & Benton, 2006). The administration should also ensure that the risk management professionals are highly visible in the healthcare organization. In the first place, no person can perform each duty of a comprehensive risk management program single-handedly, even in the smallest healthcare facilities. Therefore, it is essential for the organization’s risk management team to foster an awareness of risk management, activities, practices and techniques of senior management and the body that governs members of the medical staff, and employees at all level of an organization. Conclusion Risk management has become an integral part of hospital administration in most of the developed countries in general and the USA, in particular. It is recommended for the healthcare organizations to give serious consideration to implementing or strengthening the management of risk programs to protect their assets and minimize financial losses. References Bunting,, R. F., & Benton, J. H. (2006). Managing Primary Care Risk in the Ambulatory Environment. Risk Management Handbook for Health, 201-241. Grayson, M. A. (2007). Risk Management: New Focus for Traditional Functions. The Hospital Medical Staf, 7(5), 12-17. Lawton , R., & Parker, D. (2002). Barriers to Incident Reporting in a Healthcare. Qual Saf Health Care, 11(1), 15-18. Read More