Introduction
Providence Healthcare is subject to various risks that might affect its performance and credibility. Reputational risks may result from unfavorable press, mishaps involving patient safety, or legal action. Such risks might result in a lack of confidence in the company, reducing patient volume and income (Weil & Reddin, 2017). Financial risks that the organization suffers include budget overruns, income deficits, and growing healthcare expenses that might affect its financial success and the standard of care it offers.
In addition, Providence Healthcare faces legal and regulatory risks as a result of its highly regulated sector. If these regulations are not followed, penalties, legal action, and reputational harm may result. Operational risks such as staffing shortages, medical malpractice, and supply chain interruptions might affect patient outcomes and financial results. Lastly, the company is exposed to strategic risks like shifts in the healthcare sector, technological advancements, or demography that might make its strategic orientation outdated and result in a loss of market share or decreased profitability (Weil & Reddin, 2017). For the organization to retain its reputation, financial performance, and competitiveness in the healthcare sector, it is necessary to successfully manage and minimize these risks.
The article outlines Providence Healthcare’s risk management techniques and emphasizes the firm’s four major strategies. First and foremost, the facility takes a proactive approach to risk management, identifying and reducing possible risks before they become an issue. Frequent risk assessments and risk mitigation actions accomplish this. Second, the business places a high value on leadership qualities like honesty, integrity, and responsibility, which help mitigate possible risks and develop a culture of continuous learning and growth. Finally, the business encourages collaboration and open communication among its employees and stakeholders to identify and resolve risks immediately (Weil & Reddin, 2017). Lastly, the firm prioritizes compliance and regulatory monitoring, including regular regulatory training for personnel and the execution of rules and processes to assure compliance. The hospital can maintain a safe and effective environment for its patients and employees using risk management procedures.
Top Three Most Compelling Risks
Providence Healthcare faces many risks, and a review of these risks revealed that the three leading risks that need the greatest attention are reputational, operational, and strategic risks. Negative publicity, litigation, and patient safety events can all substantially influence the organization’s reputation and undermine public trust. This facility may focus on building a strong brand identity, adopting a crisis management plan, cultivating openness and open communication, and engaging in patient safety measures to mitigate reputational risks. The facility may decrease operational risks by conducting frequent risk assessments, adopting quality improvement programs, investing in employee training and development, and building a supply chain management plan (Weil & Reddin, 2017). Finally, strategic risks can arise due to changes in the healthcare industry, technology, or demographics, which the organization can address by conducting regular strategic assessments, developing a strategic plan, fostering an innovation and agility culture, and developing partnerships with other healthcare organizations and stakeholders. The business can guarantee that it is well-positioned to offer high-quality treatment while protecting its reputation and financial success by prioritizing these three risks and executing suitable risk-management strategies.
The Top Two Management Plans
After figuring out the possible risks and how to handle them, two management plans are suggested for Providence Healthcare. First, to manage reputational risks, one needs to implement a full crisis management plan. The organization should make a plan with steps to take in case of a reputational risk event. This plan should include a crisis communication plan, a risk assessment, and response plan, a crisis management team, and regular testing and updating of the plan. Second, it is important to create a culture of openness and honesty if they want to protect their reputation and make sure patients are safe (Weil & Reddin, 2017). This includes setting up a system for reporting bad things, giving staff and patients regular feedback and communication, involving patients and their families in the care process, and encouraging a culture of learning and improvement.
Leadership Decision on the Selected Plans
It may be concluded from an analysis of the case study’s facts that Providence Healthcare’s leadership would likely approve of the suggested risk management strategies. This is because of several factors, including the company’s proactive approach to risk management and dedication to offering top-notch patient care (Weil & Reddin, 2017). To reduce risks, The facility has previously formed a risk management committee and put in place many policies and procedures. As a result, the leadership is probably open to implementing a thorough crisis management strategy that can improve the organization’s capacity for risk management. By instituting an open-door policy and regularly holding staff training sessions on communication and dispute resolution, the organization’s leadership has additionally shown a readiness to enhance openness and transparency with patients and staff.
Conclusion
As this could improve patient safety and the standard of care, it is logical to believe that they would be amenable to establishing a culture of openness and honesty. In general, Providence Healthcare’s leadership seems dedicated to improving patient outcomes and effectively managing risks (Weil & Reddin, 2017). The organization’s beliefs and goals are aligned with the proposed best plans, which can help to further strengthen the organization’s reputation and the quality of care it provides.
Reference
Weil, M., & Reddin, C. P. (2017). Boldly Go: Character Drives Leadership at Providence Healthcare. In Leadership in Practice (pp. 188-202). Routledge. Web.