Introduction :-
Healthcare organizations are focusing more attention and effort on risk management, due to both external factors (such as public expectations for greater accountability and governance), and internal factors (such as better resource allocation).
Physician involvement in risk management activities will vary greatly from institution to institution and depend on the physician's role within the leadership structure.
At the very least, all physician leaders can expect to be involved in the patient safety aspect of risk management (as discussed in the previous section). With respect to other risks within the organization such as financial risks, human resource risks, privacy risks, and others, physician leaders may provide input into various aspects of risk management (identification, assessment, mitigation, etc.). Physician leaders are encouraged to consult with hospital administration to understand their hospital's model for risk management and their potential role in risk management activities.
The Johns Hopkins Health System ("JHHS") is the sole member of The Johns Hopkins Hospital ("JHH"). JHHS is a not-for-profit organization incorporated in the State of Maryland to formulate policy among and provide centralized management for JHHS and its Affiliates.
Possible Risks/Involved involved and solutions are as under :-
External Drivers 1. Public accountability and reputation: expectations for public accountability in healthcare are increasing, including better fiscal responsibility for public funds. This is also becoming a more important factor for recruitment of competent staff, board members, and donors.
2. Governance: a call for better corporate governance is influencing the health system, as organizations and their boards are moving towards ensuring processes are in place to identify and manage risk.
Internal Rik management committe should be gathered by management of JOhn Hopkins Hospital which will analyse the possiblity of of any issue and aware management to be ready to resolve such issues at the earliest.
Benefits for Gathering such committee is :-
1. To reduce the internal impact of surprises in the future.
2. To allocate valuable resources according to risk priorities.
3. To comply with relevant legal and regulatory threats and international norms.
4. To improve stakeholder confidence and trust.
Investment Risk :-
Investments include equity method investments in managed funds, which include hedge funds, private partnerships and other investments which do not have readily ascertainable fair values and may be subject to withdrawal restrictions. Investments in hedge funds, private partnerships, and other investments (collectively "alternative investments"), are accounted for under the equity method. The equity method income or loss from these alternative investments is included in the Statement of Operations and Changes in Net Assets as an unrealized gain or loss within excess of revenues over expenses.
Alternative investments are less liquid than other types of investments held by JHH. These instruments may contain elements of both credit and market risk. Such risks include, but are not limited to, limited liquidity, absence of oversight, dependence upon key individuals, emphasis on speculative investments, and nondisclosure of portfolio composition.
Steps to mitigate such risk :-
Revenue recognignition standard says that revenue should be recognised until the said revenue accrues and losses should be recognised when there is any possibility of such losses to occur.