Question

How does the governing body determine its desired level of risk?

This is for my Health Care Risk Management course. Please provide at least 250 words in your response.

Answer 1

Answer: The governing body determine its desired level of risk as Healthcare service quality is even more difficult to define and measure than in other sectors. Distinct healthcare industry characteristics such as intangibility, heterogeneity and simultaneity make it difficult to define and measure quality. Healthcare service is an intangible product and cannot physically be touched, felt, viewed, counted, or measured like manufactured goods. Producing tangible goods allows quantitative measures of quality, since they can be sampled and tested for quality throughout the production process and in later use.

Healthcare risk managers are encouraged to collaborate with other senior leaders in their organizations in order to maximize the usefulness of policies and procedures and reduce potential associated risks. Create a tracking mechanism that will identify when each policy’s periodic review is due, issuing advance notice to the policy owner in order to assure timely response. Hold managers accountable for policy development, review, and revision. Incorporate review of this responsibility into the annual performance appraisal process.