Risk management in healthcare

The first question as a training health practitioner is what is risk management? What kind of risk and what could be the possible causes of the said risks? Well, each institution is always faced with risks from all quarters and if not well managed or with no contingency plans, the system could be infiltrated and massive damage could be done.  Risk management in healthcare:

Risk management in health refers to the set of systems i.e. the clinical reports, the administrative data, and doctors’ reports that need to be protected at all costs. Particular systems are put in place to be able to sense, detect and prevent any invasion that would lead to the leakage of the institution’s details to unauthorized hands. Let’s discuss further risk management in health care.

Risk Classification

Risk classifications are based on the size of the healthcare management facility and the services offered. However, below is the general risk classification in healthcare:

1. Very low-risk areas
2. Medium-low risk areas
3. Low-risk areas
4. High-risk areas
5. Critical risk areas

In the above categories are further divided into divisions or departments in the healthcare system. Each department faces a specific risk that might cripple its operation.

Steps and processes of risk management in healthcare

Another vital question is the processes of risk management. Well as challenging as it may sound, this is the steps of risk identification, evaluation and finally coming up with a workable plan. Below is a systematic step and process of risk management:

1. A plan

A risk management plan must be in place to counterattack any eventuality. Even though these plans could be altered to suit a particular situation some are constant and rigid.

2. Risk identification

This is done by the creation of a dummy situation. A conceptualized framework is created and possible scenarios that could happen. This is not a perfect cover for the future risk but this helps the system to have a fallback plan and they are not caught by a surprise.

3. Risk Evaluation

Every plan is foolproof after a thorough evaluation. This is done through quantitative which tentatively is about the numerical data and the qualitative aspect which entails the delivery.

4. Planning stage

Upon identification of a potential risk, a plan has to be in place for quick intervention. For effective execution, each team should be assigned to its relevant departments.

5. Risk management and execution

The risk plan should be amended as often as possible.

Strengths and limitations of risk management in healthcare

Nothing under the sun has advantages with no disadvantages. Risk management has its own limitations and advantages as well as health care. Let’s talk about the advantages of risk management:

1. Risk management helps ensure there is business continuity even after a tragedy.
2. With planning, there is more focus on the prevention
3. Planning allows healthcare systems to operate in more confident scopes
4. A healthcare system operates more comfortably knowing they are insured
5. There is improved customer service

Just like the advantages, there are limitations to the risk management of the system:

Limitations of risk management

Risk management I a necessity in every healthcare system. However, it can also come with some limitations in as much as it is very advantageous. Let us see what the limitations are:

1. Having a risk management plan can be so expensive and might not be afforded to be put in place by some institutions.
2. Putting up a risk system comes with a lot of training expenses. During the installation, there is training required for prompt execution by the employees.
3. There is possible infiltration of the health care data which is the backbone of a health care system. This poses a threat to the institution’s confidentiality.
4. The risk management plans might not be a one-stop shop for all institutions. The common plan might not work well with other institutions.

Pros and Cons of project risk management

Setting up a risk management system has its dos and don’ts. In as much as it is very expensive to put in place, below are some dos and don’ts that should be practiced by the teams:

In the chart below, we quickly summarize the pros and cons of adopting risk management practices for your teams:

What are the high-risk areas in healthcare risk management?

In every organization or institution just like health care, there must be particular frameworks or parameters put in place to curb any eventuality. This is done to ensure the continuity of the organization and more so to protect the organization from any infiltration with ulterior motives.

The following are the areas presumed to be at high risk of infiltration and that may cause great damage to the healthcare system, might lead to loss of lives, or might damage the health facilities’ reputation at large.

Ethical and legal parameters of risk parameters in healthcare

There are ethics that govern the healthcare institutions that are the bare minimum and cannot be violet due to the oath of practice. Such are: loyalty, non-maleficence, autonomy, beneficence, integrity, respect, justice, and compassion among others.

The institutions being guarded by ethics and codes of conduct, risk management system becomes a priority. The system owes the patients efficiency which states that there should be more health resources for the patients.

This principle of non-maleficence states that no harm is to be done to the patient under any circumstance. This risk management system will caution the health providers in case of any eventuality. Data will be protected and the patient’s physical health is also taken care of under this principle.

The following areas in the risk system must have a backup plan in case of any eventuality. They are then termed high-risk areas in healthcare risk management.

Importance of risk management in healthcare

The following are the importance of having risk management in health care:

1. Appropriate preparedness

There is enough preparedness by the institution in case of any infiltration. There is always a remedy in place to act as a back. This ensures a continuous flow of operations in such cases. Before situations arise, appropriate steps for troubleshooting will have already taken place and a possible solution arrived at.

2. Better communication is achieved

The risk management team has a better conversion process. The key stakeholders, the departmental heads, and the teams’ players have flawless communication as they make any adjustments as required.

3. Creates a conducive work environment

With such a team in place and every department’s involvement, cohesion is created and a good working environment is achieved. This assures the team of their importance thereby increasing productivity.

4. Early disaster detection

With risk management in health care, frequent troubleshooting helps in detecting any danger early enough before major damage is done.  This helps in saving repair costs and averts further damages by handling the situations on the upper hand.  It is very important to have a functioning committee.

5. A well-laid procedure

With a well-laid-down procedure of risk management, there are fewer errors incurred that might cause further damage. There is a controlled quality delivery.

6. Informed decision making

A risk management team with a well-established team and procedures offers the senior managing team an opportunity to make informed decisions on equipment upgrades to avert any risk or any other major decisions.

7. Less or unnecessary expenditure

A good risk team will have a well-appropriated budget set aside to be used in any emergency case.  This in turn helps the institution is curbing any expenditures that are not within the budget.

It is recommendable that all institutions and not just those limited to health care have a risk management team. The team comes in handy when unavoided eventualities crop up.

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