Related Experiment Videos
Risk management and finance: the link
1Ohio Hospital Insurance Company, Severna Park, MD.
Summary
Effective risk management (RM) in healthcare requires strong interdepartmental communication. Educating finance and RM teams on each other's language and demonstrating RM value in financial terms is crucial for organizational benefit.
Area of Science:
- Healthcare Administration
- Organizational Management
- Financial Risk
Background:
- The benefits of healthcare risk management (RM) are often intangible, posing challenges for finance departments to recognize its value.
- A communication gap frequently exists between RM and finance departments within healthcare organizations.
Purpose of the Study:
- To highlight the importance of interdepartmental communication between risk management and finance in healthcare.
- To propose strategies for enhancing the understanding and perceived value of RM by finance departments.
Main Methods:
- Analyzing the communication challenges between RM and finance in healthcare settings.
- Reviewing methods to translate RM benefits into financial and understandable terms for senior management and finance personnel.
Main Results:
- Stronger communication between RM and finance leads to broader organizational benefits.
- Educating departments on each other's terminology improves interdepartmental understanding.
- Consistent review and reporting of RM effectiveness in financial terms are essential.
Conclusions:
- Enhanced communication and mutual understanding between risk management and finance are vital for healthcare organizations.
- Demonstrating the tangible financial impact of RM strengthens its perceived value and supports organizational goals.