With current cost pressures likely to intensify with reductions in government reimbursements and changes in the payer mix, many hospitals are taking a hard look at their total cost picture. Rising claim costs, and new laws and regulatory requirements also create the need for more formalized risk management processes, not to mention stringent on-the-job safety measures.
Key questions facing health care executives as they manage costs and risks:
- What are our major risk exposures? Which risks are significant, and what are their drivers?
- How can we systematically track adverse outcomes and claims, and offer disclosure and apologies?
- What are our risk financing objectives, and what are our options for self-insurance retention levels, insurance coverage limits and alternative risk financing vehicles?
- What are our underlying cost drivers, and how can we reduce costs?
- Do we need a change in our spending policy or investment policy for our operational, defined benefit, defined contribution and endowment portfolios?
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