Risk Management in the Health Sector

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

All organizations aim at making profits in the long run. In this regard, efforts are always directed towards the activities that can not only increase income to the organization, but also activities that reduce expenses. However, in doing this the organization comes across various risks that might be detrimental if they are not properly addressed. It is important to note that health organizations are not special as far as risks are concerned.

They are faced with a variety of risks that can negatively impact the organization or its clients. Therefore, health organizations have to choose the risks that they have to take in their endeavors to earn income. More importantly, the organizations need to implement mechanisms that will help in risk avoidance or control. As a result, risk management is an integral part in health care organizations throughout the process of health delivery.

Arguably, the change in technology that has led to changes in the way health services are offered has greatly influenced the risks that health organizations face. It is becoming increasingly difficult to predict the costs that organizations will have to incur whenever they are offering health services because of the increasing number of services that are offered as well as the number of people covered.

On the same note, there has been increase in health care service providers in recent times. This increase in competition within the health care sector has also increased the effects of risks while reducing income margins (Dyro, 2004). Health organizations have to make the decision of either avoiding risks which means reducing their profit margins or taking some risks and increase their chances of making high profits.

The emergence of electronic medical and health records also poses a new challenge to health organizations. Health organizations have to find a way of securing confidentiality of their patient’s health information while at the same time making it available to other authorized parties. It is important to note that electronic health records are susceptible to cyber criminals.

Furthermore, it is important to ensure that patients and employees are safe throughout that process of health services delivery. Unfortunately, health mistakes occur more so due to the improved technology that is currently used in health delivery. Challenges are being witnessed in the efforts of health organization to reduce medical mistakes.

Notably, the health sector is becoming even more fragmented as time goes by. This is in itself a problem because getting other services or information from other professionals is a challenge. Nonetheless, sharing of information is vital in enhancing health care quality. On the same note, policies have been implemented which define certain offences of health care organizations and define the civil and criminal penalties of each activity (Kavaler, 2012).

However, not all organizational employees know which activities can be classified as civil or criminal offences. Similarly, health professionals are very scarce and shortage of staff is the order of the day for health organizations yet they are expected to provide services according to the health reforms.

Moreover, operational efficiency has to be ensured yet the organizations are increasing in size. The increasing threats of terrorism as well as the probability of medical malpractice have to be taken into consideration. In a nut shell, the high rate risk dynamism is a risk in itself.

Some people will ask why risk management is such an important issue in health organizations. To begin with, technology has advanced and many people are becoming technologically advanced (Youngberg, 2010). As a result, patient information especially the ones stored electronically can easily find their way to unauthorized hands if care is not taken. Cyber criminals are increasing their activities of hacking into various organizational systems and disrupting important functioning of these organizations.

It is therefore crucial to have information systems security upgraded to avert any such attempt. On the same note, financial crisis has hit various health organizations in recent times. While the health care industry was assumed to be shielded from financial crises by the nature of its formation, increase in the health care cover has opened it to any kind of economic downturns. As a result, it has become important to have financial risks also included in the risk management process (Kavaler & Spiegel, 2003).

Moreover, increase in legal regulations in the health care sector is an issue of concern. Higher cooperate and ethical standards are the basis of evaluation not only for the government but also for the public. This restricts the operations of the health organizations and demands increased dexterity in operations.

Similarly, people are becoming aware of the charges of each service and will like to receive services worthy their money. On the other hand, with the increase in number of health care organizations, people have expanded choices. This means that no organization can afford the laxity of billing without necessarily delivering equivalent services. Additionally, any mistake made can lead to legal actions or loss of clients.

More importantly, the aim of risk management in health care organizations is to avoid loss of patients while receiving treatment (Hancock, 2008). Besides the legal actions that may result from this eventuality, loss of patients may lead to negative publicity. It should be noted that negative publicity can lead to high rate of patient exit thus financially crippling the organization. Safety of patients should be the main aim of any health organization.

In management of risks, various health organizations utilize different approaches. Nevertheless, all this approaches are designed to cover the whole process of health care delivery. To begin with, adherence to the professional principles and code of ethics is crucial in any business enterprise.

However, the same does not come easy. Consequently, policies should be implemented to regulate and define what is expected of everybody at any given point in time (Kavaler, 2012). Instituting a culture of good conduct within the framework f organization culture will highly improve the services offered as well as the care accorded to each activity. This will in the end reduce various risks that would have occurred.

On the same note, easy of communication within an organization is vital in ensuring easy flow of information and rapid actions. In this regard, instead of having all the risk management duties handled by only the risk management department, it would be beneficial to have various departments handle certain risks management procedures. This will ensure involvement of the whole organization in risk management procedures increase reporting of any complicated case for timely action.

Financial risks are likely to heavily harm any organization if not adequately addressed. It is important to note that even the management of risks itself can amount to a financial risk if not properly planned and budgeted for (Hancock, 2008). Having several risk management strategies within an organization is very important in ensuring that risks are as minimal as possible.

However, with many strategies the chances of duplicating roles is very high thus bringing about unnecessary expenses. Therefore, it is advisable that to use only those strategies that do not have overlapping objectives in order to reduce spending.

On the same note, it is important to note that there are no risks within a health organization that are only important to a specific unit. Each and every risk has the ability of causing harm to the whole organization. Consequently, the whole organization should be involved in the process of risk management. In this regard, a centralized department of risk management is crucial in ensuring that cooperation in risk management policies.

It should be noted that inclusion of the employees whenever decision regarding risk management are made will highly encourage them to reduce or prevent any risk to the organization (Kavaler & Spiegel, 2003). Automated reporting system is also instituted in some organizations to ensure that reporting of incidents as well as notification sending is done on time.

As a result, problem solving is enhanced while at the same time transparency and responsibility are upheld. It is important to note that imposing risk management procedures on staff will elicit objection and thus lead to ineffectiveness of the policies.

It is worth noting that the traditional way of risk management where organizations aimed at addressing issues whey they occurred instead of endeavoring to control them is retrogressive. It is needless to take actions when the harm has already been done. Therefore, the method of categorizing risks of different departments differently is outdated. Consequently, health organizations need to look at the risks from an enterprise point of view.

Enterprise risk management approaches all risk from a single point of views and comes up with strategies to approach them. To improve inclusivity in the process of risk management, staff should be well informed on the risks that face the organization as a whole both internal and external and their duty in managing them.

On the same note, members of staff should be educated to understand the environment in which the organization operates so that they can be aware of the severity of the risks involved. This will ensure that implementation of risk management policies is easier because every employee will be willing to adhere to the regulations (Hancock, 2008).

The interrelationship between risks and organizations objectives should be made as clear as possible. Similarly, highly risk events should be highlighted and every employee made aware of them. This will increase awareness among members of staff on how the risks can prevent the organization from achieving it vision.

All these should be included in the training that employees get when they join the organization. Moreover, periodical training should be conducted to educate members of staff on the possible risks and any role that they should carry out. This will highly prepare them to deal with any risk in their line of duty as well as enhance their cooperation with administration in risk management.

It is important to note that risk management begins from the point of recruitment. While there is scarcity of health staff, not everybody should be recruited into the organization. Management should ensure that employee recruited to fill various vacancies are highly qualified and registered with relevant bodies where necessary. This will ensure that professional mistakes that can easily lead to negative impacts to the organization are minimized (Youngberg, 2010).

Making each department part and parcel of the risk management program ensures that risks are identified and communicated in a timely manner. However, it is the responsibility of the management and risk management team to react to the risks. Evaluation of the risks is necessary to ensure that not only the effects but also the magnitude of their impact is established.

This enables the management in prioritizing the risks and knowing which strategies to put in place. Continuous assessment of risks is essential to know which risks the organization is facing at each particular time. On the same note, it is important to note that an organization cannot operate without taking some risks. Consequently, risk assessment enables the organization to know the risks that are worthy taking at any stage of operation (Dyro, 2004).

In their strategies of addressing the various risks facing the organization, management has four options to choose from. Firstly, the management may choose to avoid the risk. This involves strategies that are meant to ensure the risk does not occur and affect the organization.

This is the main option that any organization explores whenever any risk is addressed. Secondly, the organization may choose to take the risk as it is. This option allows the risk to occur and organizations take no steps against the risks. Mostly the option is used when the organization has no way of avoiding the risks in question.

However, an organization may also choose to take the option when effects of the risks are much lower compared to the benefits involved. Thirdly, an organization may decide to put the risk under control. This involves trying to mitigate the effects that the risks may have to the organization or regulating the probability of the risks occurring (Youngberg, 2010).

Lastly, the strategies implemented by an organization may be aimed at transferring the risk to another party. It should be noted that there are other firms which are well prepared to tackle various risks. As a result when it is impossible to avoid a given risk, an organization will transfer the risk to these firms.

For example, a health organization can insure some of its activities so that in case of any eventuality the insurance firm can reimburse the money lost. Information technology is very important in risk management because many operations use information systems. Moreover, incorporation of information systems in risk makes work easier because the information systems have decision support applications (Kavaler & Spiegel, 2003).

Risk management is an integral part of any organization operations because risks are present in any economic aspect. In this regard, health organizations cannot avoid risks in their operations. Various activities that health organizations are involved in expose them to various risks.

Moreover, the dynamics in the activities that various health institutions have embraced nowadays have brought into the question some new risks that require new strategies. In this regard, health institutions must incorporate the risks management in every department and this will ensure effectiveness in risk management.

However, it should be noted that risk management requires some money and this should be included in the budget. Nevertheless, care should be taken to ensure that the costs of risk management do not exceed the benefits of avoiding the risks.

References

Dyro, J. F. (2004). The Clinical Engineering Handbook. Waltham: Academic Press.

Hancock, C. (2008). Issues in Healthcare Risk Management. Raleigh: Lulu Press.

Kavaler, F. (2012). Risk Management in Healthcare Institutions: Limiting Liability and Enhancing care. Burlington: Jones & Bartlett.

Kavaler, F. & Spiegel, A. D. (2003). Risk Management in Health Care Institutions: A Strategic Approach. Burlington: Jones & Bartlett.

Youngberg, B. (2010). Principles of Risk Management and Patient safety. Burlington: Jones & Bartlett.

Click Here To Order Now!

Risk Management in the Health Sector

Do you need this or any other assignment done for you from scratch?

We have qualified writers to help you.

We assure you a quality paper that is 100% free from plagiarism and AI.

You can choose either format of your choice ( Apa, Mla, Havard, Chicago, or any other)