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Assessment 2 Instructions: Risk Financing
MHA-FPX 5014
Create a 2-3 page internal memo for a risk-management team. Summarize a risk financing issue for a selected organization in the memo.
Introduction
Financial risk-management helps reduce the financial impact of risk. It also determines the best approach for handling adverse situations from a financial standpoint. Health care leaders must have a solid understanding of the basics of regulation, government and public risk sharing, and also the era of ACOs.
There is a constant tension between the management of medical errors and the improvement of the quality of care. You may be asked to participate in risk-management and risk financing activities in your role as a health care leader.
Research and summarize financial risks in your organization, and include the following:
What information to include?
What format to use?
How to present alternatives and make a recommendation?
How to locate credible data from which the issue is to be evaluated?
Read further in the Assessment 2 Context [PDF] document (attached), which contains important information on the following topics:
Regulations.
Risk Management.
Risk Sharing.
Risk Financing.
Imagine that a supervisor enters your work setting accompanied by an unexpected visitor from CMS. Your supervisor introduces you to the Medicare surveyor, who will be interviewing you.
• What is the risk-management process in your organization?
• What criteria would you use to determine how well your organization is performing as an ACO?
• What data or resources would be helpful to you?
• How would you explain the concepts of risk management and risking financing activities to your subordinates?
• How would you explain a risk financing continuum to your subordinates?
Overview and Preparation
Imagine yourself in the role of a risk manager. Select a topic related to risk financing and identify a risk financing issue. This issue is from your selected organization workplace. As an example, you might select the issue of financing potential malpractice suits at a medical clinic. Refer to the resources provided for this assessment to ensure that you have a solid understanding of the financial dynamics related to this type of issue.
Instructions
Memo – Risk Financing Issue
Create a 2– 3-page internal memo. Follow the steps below and include them in the memo:
• Concisely describe the issue and the organization.
• Summarize the legal and ethical financial risk obligations of an ACO.
• Describe how you would identify and manage risk financing issues within this organization. Support your choice of strategies with relevant resources.
• Recommend two or three of the best options for risk financing for this issue, as it relates to the organization in question.
• Include at least three APA-formatted in-text citations and accompanying congruent APA-formatted references. Your sources can be a course textbook, assigned reading, or any other scholarly source.
Additional Requirements
Written communication: Written communication should be free from errors that detract from the overall message.
Memo format: Format your memo so that it reflects the professional standards of your organization or accepted standards of a professional memo in the industry.
Length of paper: 2–3 double-spaced pages for the written portion of the assessment.
Number of resources: A minimum of three resources. Relevant, scholarly, current (within 5 years)
Font and font size: Times New Roman, 12 point.
Competencies Measured
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 2:
• Apply a risk-management model or framework to a specific risk-management priority.
• Identify key performance indicators and measures associated with a specific risk-management issue.
• Discuss strategies used to identify risk financing issues in a selected organization.
• Provide recommendations for risk financing options related to an identified financial risk issue.
Competency 4:
• Analyze applicable legal and ethical institution-based values as they relate to quality assessment.
• Summarize the legal and ethical financial risk obligations of an accountable care organization.
Competency 5:
• Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care administration.
• Prepare a professional memo summarizing a risk financing issue for a specified organization.