The recent, rapid proliferation of uncertainty in our healthcare industry has set the stage for transformation from a traditional silo risk management program to a new and advanced integrated enterprise risk management (ERM) model. Internal and external forces such as hurricanes, workplace violence, political and civil unrest combined with “acquisition-mania,” heightened transparency, competition, and value-based performance present the timely opportunity to rethink how we identify and prioritize risks and the tactics that mitigate those risks in the healthcare industry. Because an ERM aligns with the organization’s strategic plan, this approach brings value to the organization by providing holistic protection from vast and evolving exposures as opposed to a traditional and limited risk avoidance and insurance solutions
It’s no wonder that the concept of ERM is gaining the attention of risk managers, hospital boards and the healthcare executives. Recently, RCM&D conducted an ERM benchmark study of hospitals and health systems throughout the mid-Atlantic region and Florida. The study affirmed that traditional risk management is no longer adequate to manage risk and uncertainty. Transforming from a traditional risk management program to an ERM model needs to be deliberate, purposeful and well-planned.
The RCM&D study identifies the top 15 enterprise risk concerns for hospitals and health systems ranked by likelihood and impact by peer organizations. The top risks identified were:
Top 15 Risk Concerns for Hospitals and Health Systems
1. Changing Nature of Healthcare
2. Cyber Liability
3. Recruitment, Retention and Succession Planning
4. Network Integrity, Capacity & Backup Procedures
5. Payer Mix/Reimbursement
6. Cost Management
7. Communication Systems
8. Meeting Financial Goals
10. Business Model & Services Portfolio
11. Clinical Errors
Clinical Patient Safety
12. HIPAA Privacy & Security
13. Serious Safety Events
Clinical Patient Safety
15. Electronic Health Records
The study provides in-depth analysis of each of these risks as well as risk heat maps and stratification of survey results based on key demographic features. These results can be used by your organization as a benchmark for your own ERM program whether you are in the infant stages of development or already have a mature ERM program.
To request a full copy of the report please go to rcmd.com/HealthcareERM2017.
Developing an ERM program is not just a new project or initiative but rather the transformation of decision-making that is only sustainable when leadership, culture, strategy and infrastructure align. Partnering with RCM&D can help your organization to identify and develop a plan to successfully design and implement an ERM program. If you have any questions or would like to talk about an ERM strategy for your organization, contact me at email@example.com or at 443.421.5053.