Finance in health care
With the background gained from the outside readings assigned this week on the Legal and Regulatory Environment, what action or recommendations in the area of enterprise risk management initiatives would you recommend as the Chief Financial Officer within your healthcare organization (name the type of healthcare organization that you work in) after reviewing the Office of Inspector General Work plan for 2014?
(1)What business risks does the Red Flags Rule protect against? Briefly discuss who is covered by the Red Flags Rules and how does a subject entity demonstrate compliance with Red Flags Rule?
(2)Describe “internal control” as it relates to a corporate compliance program. Identify the five interrelated components of internal control and briefly describe how their implementation impacts internal control.
The assignment this week will be the second short paper on Return on investment with a focus on the steps recommended for building the documentation for the justification of a “soft return”(soft costs include risk avoidance, client goodwill, patient safety, process improvement, and regulatory compliance and support costs) and the gathering of metrics with the intention of estimating the financial benefits expected from the project. . There are three steps in documenting soft returns, which are identifying a process improvement opportunity, create a formula to calculate the benefits, and determine the costs of the process and the net benefits. Soft costs include risk avoidance, client goodwill, and support costs Many projects in healthcare today require large outlays of capital for electronic health records, clinical information systems whose return on investment is not easily documented with new revenues and operating expenses but from a quality standpoint are wanted and needed. In your research, consider what would be needed to support a capital acquisition that would improve efficiency, quality, customer satisfaction, and overall effectiveness within the organization. Also, would a project management office establishment be of any assistance in monitoring the project?