Risk_Management_in_Health_Care

There are five steps in the risk management process: risk identification, risk analysis, risk control/treatment, implementation, and monitoring the results. The process helps identify potential risks for accidental loss, examine and implement the best risk management techniques, and monitor those techniques for effectiveness. Risk management helps maintain the reputation and objectives of the organization as well as reduce financial loss. Quality management in risk management helps protect the patient, staff, and hospital. Quality risk management helps the facility identify red flags in patient care that need to be improved on. Quality management in risk management provides the patient with a sense of comfort knowing quality patient care is a priority for the organization; therefore, giving the facility a competitive edge over other facilities. JCAHO was formed by many healthcare organizations to ensure hospitals followed the standards of practices and quality care. The accreditation standards went into effect January 1, 1989. Some standards an applicable institution must show compliance with several standards to attain accreditation. According to the text, one standard is a hospital’s governing body must provide resources and support for the quality assurance and risk management functions related to patient care and safety. (p. 13) I think workplace safety is one that I come across often at work. We are told from the beginning to be mindful of any potential hazards that may result in an accident such as exposed wires and electrical cords not properly tucked away. The liability for transfer of contaminated property has been a recent change in our practices. The Medical Waste Tracking Act was passed in 1988 and we recently implemented new practices for discarding medications 20 years after the fact. We now have colored bins and each drug has a specification on what color bin to throw it in. According to the the text, the risk management committee’s responsibility are to ensure information is flowing though departments and services in a timely manner and to provide a directive for loss control and risk reduction actions. (p. 17) A diverse group of personnel who make up the committee ensures the multifaceted approach to any situation that may arise. Federal examples of legislative control are the Occupational Safety and Health Act of 1970 (OSHA) and the Health Insurance Portability and Accountability Act of 1996 (HIPAA). State examples are a smoke-free workplace and licensure and registration of professional institutions. A city might have regulations on reporting communicable diseases and a county may have certain fire safety regulations. I believe practice guidelines are in place to protect the patient as well as the health care professional. It helps ensure the health care professional is aware of the potential loss by not following the guidelines that are in place. For example, not disposing of a needle properly may impose harm on another health care professional. It also makes the health care professional aware of the consequences of an action or inaction. It may be more time consuming for some tasks but the guidelines are in place for a reason. The effects September 11 had on the insurance companies was one of creating a new and very real risk, terrorism. Insurance costs soared because coverage is based on the fact insurance companies have to identify risks and the potential cost and then pass on the cost to consumers. Terrorism adds another element to the coverage and costs. September 11 affected the health care industry in many ways. Some hospitals may not be able to afford terrorism insurance and may lose out on capital without the coverage. Because of the financial losses and increased insurance cost, many hospitals are decentralizing and outsourcing professional, administrative, and other services. The text defines enterprise risk management as “an approach to assessing and addressing risks from all sources” that impedes the organizations objective. ERM expands the process to include not just risks associated with accidental losses, but also financial, strategic, operational, and other risks.