MHA FPX 5014 Assessment 2 Internal Memo – Risk Financing 

Patient Safety Issue 

Rochester General Hospital (RGH), a part of Rochester Regional Health, has been recognized for its quality healthcare services, earning Magnet status for excellence. Still, to sustain its progress and achieve organizational pretensions, addressing the high rate of medicine crimes through trouble backing is vital. These crimes not only compromise patient safety but also present significant financial risks to RGH. 

An evaluation of RGH’s spring 2021 sanatorium grade highlights the strictness of this issue. The performance in the medicine administration sphere is particularly concerning, as detailed below (Hospital Safety Grade, 2021).  

Patient Safety Risk and Key Performance Indicators 

Medicine crimes are a leading cause of patient detriment and financial loss in healthcare installations worldwide (Haytham, 2016). Defined as any preventable event that may beget unhappy medicine use or cause detriment under healthcare professional control (AMCP, 2019), these crimes can occur during ordering, transcribing, allocating, administering, or monitoring stages (Durham, 2016). Given the dynamic nature of healthcare backing, with its evolving regulations, programs, technologies, and guidelines, medicine crimes pose both clinical and financial risks to RGH. 

Trouble backing is essential for relating the implicit costs of these risks and assessing the association’s capability to manage them (Rhinehart, 2021). disquisition indicates that medicine crimes bring the U.S. healthcare system roughly $3 billion annually (AMCP, 2019). 

To address this, RGH’s trouble operation team will employ pivotal performance pointers (KPIs) and performance dashboards to cover, assess, and palliate risks associated with medicine administration. The KPIs include 

Strategies to Identify Risk Financing Issues 

Trouble backing involves assessing RGH’s financial capacity and amenability to manage risks while aligning with the association’s strategic values (Harvard University, n.d.). Pivotal strategies include relating, accepting, and managing risks (Indeed Editorial Team, 2020). 

Relating risks involves examining processes or events that can harm cases and beget financial loss. For illustration, medicine crimes can affect extended sanatorium stays, increased resource use, dropped payment, and financial losses (Chen, 2017). Managing risks entails gathering data, reviewing information, and developing strategies to reduce the circumstance of these risks (NEJM Catalyst, 2018). Benchmarking can also be used to measure progress in trouble mitigation and financial performance (Institute for Safe Medication Practices, 2005). 

Recommendations for Risk Financing 

To reduce medicine crimes at RGH, the following strategies are recommended: 

• Computerized Provider Order Entry (CPOE) with Clinical Decision Support (CDS) 
• Bar Code Medication Administration (BCMA) System 
• Confidential Incident Reporting 

Implementing technologies like CPOE and CDS has been shown to reduce medicine error rates by 55% (Durham, 2016). These systems inform companion healthcare professionals on drug tablets, routes, and frequency and give cautions for aversions or relations (Shah, 2016). The BCMA system ensures the five rights of medicine administration (right case, cure, drug, time, and route) and generates real-time cautions (Shah, 2016). 

Confidential incident reporting will help gather data on medicine crimes, enabling the development of strategies to ameliorate patient safety. A safety culture will be fostered, encouraging error reporting without fear of impacts, thereby furnishing precious perceptivity for trouble directors (Rodziewicz, 2021). 

Legal and Ethical Financial Risk Obligations 

As a responsible care association (ACO), RGH must manage legal and financial risks effectively to remain profitable and successful (NAACOS, n.d.; LaPointe, 2016). ACOs aim to give coordinated, high-quality care while reducing costs and preventing medical crimes (CMS, 2021). Compliance with CMS programs, which reduce or withhold payment for preventable crimes, is essential (National Conference of State Houses, n.d.). By adhering to safe medicine practices and The Joint Commission (TJC) guidelines, RGH can ameliorate patient safety and maximize payment from CMS. 

MHA FPX 5014 Assessment 2 Internal Memo – Risk Financing  

Durham, M. S. (2016, February). Reducing Medication Administration Errors in Acute and Critical Care: A Multifaceted Pilot Program Targeting RN Awareness and Behaviors. The Journal of Nursing Administration, 46, 75-81. Retrieved from https://oce-ovid-com.library.capella.edu/article/00005110-201602000-00006/HTML 

Harvard University. (n.d.). What is risk financing? Retrieved from Harvard University: https://rmas.fad.harvard.edu/faq/what-risk-financing 

Haytham, T. A. (2016, June 6). Improving admission medication reconciliation compliance using the electronic tool in admitted medical patients. Retrieved from U.S. National Library of Medicine: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5067707/#:~:text= Medication reconciliation is a key safety measure, and patients receive medication reconciliation within 24 hours of admission. Hospital Safety Grade. (2021). Rochester General Hospital. Retrieved from Leapfrog Hospital Safety Grade: https://www.hospitalsafetygrade.org/h/rochester-general-hospital?findBy=hospital&hospital=Rochester+General+Hospital&rPos=96&rSort=grade Indeed Editorial Team. (2020, December 10). Five Key Risk Mitigation Strategies (With Examples). Retrieved from Indeed: https://www.indeed.com/career-advice/career-development/risk-mitigation-strategies 

MHA FPX 5014 Assessment 2 Internal Memo – Risk Financing  

Institute for Safe Medication Practices. (2005, March 10). Measuring Up to Medication Safety. Retrieved from ISMP: https://www.ismp.org/resources/measuring-medication-safety LaPointe, J. (2016, April 5). Understanding the Fundamentals of Accountable Care Organizations. Retrieved from Revcycle Intelligence: https://revcycleintelligence.com/features/understanding-the-fundamentals-of-accountable-care-organizations#:~:text=ACOs%20take%20value-based reimbursement to a new level,in%20ACO%20contracts%20can%20be%E2%80%9Cupside%E2%80%9D%20or%E2%80%9C NAACOS. (n.d.). 

Membership Types and Dues. Retrieved from National Association of AC

Election. National Conference of State Legislatures. (n.d.). Medicare Nonpayment for Hospital-Acquired Conditions. Retrieved from NCSL: https://www.ncsl.org/research/health/medicare-nonpayment-for-hospital-acquired.aspx NEJM Catalyst. (2018, April 25). What Is Risk Management in Healthcare? Retrieved from Catalyst: https://catalyst.nejm.org/doi/full/10.1056/CAT.18.0197 

Rhinehart, C. K. (2021, June 30). Risk Financing. Retrieved from Investopedia: https://www.investopedia.com/terms/r/risk-financing.asp 

MHA FPX 5014 Assessment 2 Internal Memo – Risk Financing  

Rodziewicz, T. L. (2021, January 4). Medical Error Reduction and Prevention. Retrieved from U.S. National Library of Medicine: https://www.ncbi.nlm.nih.gov/books/NBK499956/ 

Shah, K. L. (2016, September). Bar Code Medication Administration Technology: A Systematic Review of Impact on Patient Safety When Used with Computerized Prescriber Order Entry and Automated Dispensing Devices. The Canadian Journal of Hospital Pharmacy, 394-402. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC5085324/