The Evolution of Risk Management in Healthcareīefore the medical malpractice crisis of the 1970s, risk management in healthcare was largely reactive leaders and staff wouldn't solve problems until they happened. Risk management involves analyzing organizational processes and practices, identifying risk factors that exist within them, and implementing procedures to uncover, mitigate and prevent risks to decrease patient harm and minimize financial loss. While risk cannot be avoided altogether, it can be addressed through risk management. Risk can involve faulty equipment, workplace hazards, and medical malpractice, among other things. While risk is present in just about every industry, it can be particularly prevalent in healthcare. Risk is anything that can result in an unexpected outcome or loss. In addition, risk management in healthcare can lead to a good record of patient safety, which helps an organization maintain its brand reputation, obtain accreditation, receive reimbursements, and become a provider of choice. Establishing a thorough risk management program allows organizations to consistently identify potential risk factors and implement procedures to address those risks. Due to the nature of healthcare, patients, staff, and companies may be exposed to risk regularly.
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