1. CONTROL & RISK MANAGEMENT
STRATEGIC MANAGEMENT IN HEALTHCARE
MARCH 16, 2006

2. CQI AND CONTROL PROCESSES CAN BE IMPROVED
CONTROL IS DIRECTED AT PROCESSES
INPUT CONTROL IS NO SUBSTITUTE FOR PROCESS AND OUTPUT CONTROL

3. CONTROL MONITORING POINTS
INPUTS - PROSPECTIVE
FEED FORWARD CONTROL
PROCESSES - CONCURRENT
SCREENING CONTROL
OUTPUTS - RETROSPECTIVE
FEEDBACK CONTROL

4. INPUT CONTROL FOCUSES ON RESOURCES CONSUMED
IN A SERVICE INDUSTRY THIS USUALLY MEANS PERSONNEL
PHYSICAL RESOURCES SHOULD NOT LIMIT PERSONNEL BUT USUALLY DO

5. PROCESS CONTROL OUTPUTS ARE DETERMINED BY:
AMOUNT & APPROPRIATENESS OF INPUTS
EFFICACY & EFFICIENCY OF PROCESS

6. OUTPUT CONTROL ALSO CALLED FEEDBACK CONTROL QUALITATIVE & QUANTITATIVE
REQUIRES STANDARDS OR EXPECTATIONS
OFTEN QUANTITATIVE

7. CONTROL METHODS BUDGETING COST ALLOCATION
RATIO ANALYSIS - % OF EXPECTED
FINANCIAL STATEMENTS/ANALYSIS
OPERATIONAL ACTIVITY ANALYSIS
BENCHMARKING
STANDARD SETTING

8. DESIGNING CONTROLS INFORMATION BASED PROSPECTIVE WHEN POSSIBLE
REALISTIC & UNDERSTANDABLE
ACURATE, TIMELY & RELIABLE
IMPORTANT &/OR COST-EFFECTIVE

9. INFORMATION SYSTEMS MANAGERIAL - HUMAN RESOURCES
CLINICAL – DOCTOR VISITS
MIXED - LABORATORY
GARBAGE IN, GARBAGE OUT
IF A SYSTEM IS NOT FUNCTIONAL, COMPUTERS WILL MAKE IT WORSE

10. RISK MANAGEMENT PRIMARY, SECONDARY, AND TERTIARY PREVENTION
SPECIALTY OF LAWYERS
ABOUT STANDARDS
ABOUT LOSSES
MONEY
REPUTATION/BUSINESS
FREEDOM

11. RISK MANAGEMENT AVOID OR REDUCE LOSSES/MISTAKES
MITIGATE THE DAMAGE FROM LOSSES/MISTAKES
INSURE AGAINST LOSSES/MISTAKES
OBEY THE LAW

12. STEPS IN RISK MANAGEMENT
IDENTIFY
EVALUATE
REDUCE/ELIMINATE
TRANSFER/INSURE

13. WHEN A LOSS OCCURS SECURE THE RECORDS MITIGATE DAMAGES
DON’T ADD INSULT TO INJURY
BE SMART ABOUT BILLS
SUPPORT YOUR PEOPLE

14. SELF-INSURANCE YOU ARE YOUR OWN INSURANCE COMPANY
REINSURANCE OR UMBRELLA IS USUALLY NECESSARY
DEDUCTIBLE IS A FORM OF SELF-INSURANCE

15. INCIDENT REPORTS MAY BE USED FOR NUMBERS ONLY
SERIOUS PROBLEMS NEED A FAST TRACK
MUST HAVE A CORRECTIVE ACTION COMPONENT - DON’T JUST DOCUMENT YOUR STUPIDITY!

16. INDEMNIFY & HOLD HARMLESS
USUALLY A STUPID IDEA FOR BOTH PARTIES
DON’T EVER SIGN ONE YOURSELF
INSURANCE OR A BOND IS THE RIGHT WAY TO DO THIS