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Define Risk Management in Health Care

Risk management is an asset to any industry because of the adverse affects that disasters can have on an organization. By managing risk through preventative strategies, mitigation techniques and having a contingency plan in place, health care companies can minimize their risk exposure and keep patients safe.

  1. Definition

    • Risk management is the preventative process for managing risks. Risk management involves identifying risks, strategizing ways to avoid or mitigate those risks and developing a contingency plan in case risks cannot be prevented or avoided. According to The Medical and Public Health Law Site, health care risk management goes beyond the protection of a business's operations and finances; it involves understanding how risks can impact patients.

    Significance

    • One of the most important features of health care risk management is ensuring the continuity of patient care. This means that hospitals and doctors' offices have to consider how risks can be managed in a way that does not disrupt a patient's treatment. According to an August 2007 article in "Healthcare Finance News," patients are negatively affected every year from risks that have impacted their treatment. As such, risk management is an essential part of the health care industry.

    Considerations

    • According to a 2007 update by the University of Florida, risk management in health care is different than in other industries, because there are so many specifications that need to be considered. For instance, pediatric risk management is different than geriatric risk management. Also, the health care industry differs from other industries in that there are risk management laws that hospitals and doctors' offices are bound to.

    Managing Business Risks

    • As with any type of industry, health care administrators are concerned about the potential for operational and financial risks. If risks, threats or disasters impact a health care organization's business functions, it can have a snowball affect that trickles down to the patients. As such, according to the October 1997 issue of "Nursing Homes," through performing risk analyses and ensuring best practices, health care administrators can do their share to protect patients, and their companies, from potential harm.

    Managing Patient Risks

    • Unfortunately, patients are a vulnerable population when it comes to health care risks. According to an update by the ECRI Institute, there are many steps that health care companies can take to protect their patients from risk. Such steps include environmental safety, medication and pharmacy safety, fire safety and infection control.

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