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Risk Data Integration Elevates Healthcare ERM

A truly integrated healthcare risk management platform will improve provider organization efforts to practice effective Enterprise Risk Management (ERM).
By: | April 18, 2017 • 6 min read

Healthcare risk management starts with patient safety. No other industry holds responsibility over people’s quality of life quite like healthcare, where mistakes hold dire consequences for patients, families, providers and organizations.

But there are many more risks to consider beyond this critical area.

Governance and compliance risk, emergency preparedness and business continuity, vendor and supply chain risk and strategic risks don’t exist in isolation. They are all interconnected, and many can impact patient safety.

“Patient safety is the traditional entry point for risk management in healthcare,” said Jay Lechtman, Senior Director, Market Development & Strategy, Riskonnect, “but you also need to look at the whole picture to understand how your risks are connected.”

“Just as healthcare provider organizations adopted lean six sigma from manufacturing, safety checklists from aviation, and high-reliability organizations from nuclear energy and defense, they are now adopting enterprise risk management from other industries — such as financial services — as a best practice.”

But ERM doesn’t necessarily place risks in context, and can still be fragmented. To ensure a more holistic approach, risk managers need to practice it as integrated risk management.

What is Integrated Risk Management?

Senior Director, Market Development & Strategy

Integrated risk management calls for risk managers to see the connections between different areas of risk and find solutions that mitigate the total exposure.

In a primer for member boards and trustees, the American Society of Healthcare Risk Management (ASHRM) explains that organizations can start with an enterprise risk management approach and then make comparisons among its risks to see how they interact with one another and what cumulative impact they have on the organization.

“That elevated view of risk is integrated risk management,” Lechtman said. AHSRM has been making efforts since 2014 to educate healthcare organizations on integrated risk management and provide tools to develop the approach.

And most if not all of these efforts come back to improving patient safety.

Pharmaceutical supply chain risk, for example, has often been involved with potentially dangerous medication errors.

“Medication errors are a commonly reported patient safety event, and drug shortages have frequently been identified as a causal or contributory factor in these errors,” Lechtman said. “It’s not a surprising fact. Clinicians unfamiliar with new drugs and their prescription and administration protocols are more likely to make mistakes.”

Yet, identifying drug shortages as a factor in isolation requires lengthy investigations, root cause analyses and enough data aggregation to see clear trends.  Somewhere there is a disconnect between supply chain risk management and downstream clinical risk management. Fragmented ERM fails to take into account how vendor risks can directly impact patients.

Now, external resources – like the FDA’s Drug Shortages Database – help healthcare providers monitor and manage this issue, but Lechtman argues that effective integrated risk management could have helped the solve the problem internally.

“In integrated risk management, the pharmacy supply chain risk could be identified and mitigated much faster, with protocols put in place to train staff on use of identified alternative medications to reduce unfamiliarity and error,” Lechtman said.

Crisis management and business continuity offer another example. New Conditions of Participation for Medicare that go into effect later this year will require healthcare providers to improve emergency preparedness, which includes having business continuity plans. Patient safety is again a critical factor in planning for transportation and use of backup supplies and facilities in the event of an emergency.

Nearly all hospitals and health systems report trying to implement ERM at some level of their organization. But, even if they want to integrate it, they have lacked the technology to enable the vision.

“Legacy vendors focus on patient safety, claims and risk management specifically designed for healthcare. They don’t support broader risk management, governance and compliance risk that healthcare organizations sorely need,” he said.

Achieving True Integration

Other industries, where patient safety isn’t a consideration, have been working towards an integrated approach for years. The financial services sector, for example, has been implementing Governance Risk and Compliance (GRC) solutions for much longer due to its exposure to regulatory and compliance risk. The healthcare industry’s late arrival to ERM gives it a unique opportunity to learn from others’ mistakes and “leapfrog” over other sectors, Lechtman said.

“Just as much of the developed world skipped building expensive wired communications infrastructure in favor of cell phones, healthcare has the opportunity to leapfrog into true integrated risk management and avoid the pitfalls of a fragmented, siloed ERM approach,” he said.

However, “it’s hard to succeed in integrated risk management when information systems can’t handle it,” Lechtman said.

The ideal integrated risk management solutions for healthcare need to excel at helping provider organizations identify and manage their unique hazard risks — like patient safety — while seamlessly scaling to other insurable and strategic risks types that healthcare shares with other industries. And, of course, they need to be able to secure sensitive healthcare data and support healthcare privacy compliance.

Seeing is Believing

Riskonnect’s Integrated Risk Management Solutions™ check all the boxes. Scalable on a single platform, the system can handle everything from patient safety, patient relations, claims and litigation management, peer review, accreditation and HIPAA compliance, employee safety and health, governance risk, reputation risk, reimbursement risk, vendor and supply chain risk, business continuity management and strategic risk.

“We’ve taken lessons from other industries, and we’ve incorporated that into our healthcare approach so that, instead of providing another limited point solution, we can do everything for healthcare risk and do it well,” Lechtman said.

Riskonnect backs up its technology with a combination of clinical healthcare experience and risk management expertise is that is necessary for risk managers to draw the connections between patient safety and other risk areas.

“If you can make the connection from other risk areas back to patient safety, you can improve that critical risk area faster and more effectively. “Limited and siloed patient safety systems just can’t do that.”

Riskonnect’s Integrated Risk Management Solutions™ can house and allow access to data and workflows connected to all risks. The solutions provide all the functions that a risk manager or claims professional might need, from notifications to determination of compensability through to follow-ups, and everything in between.

The description alone is compelling, but nothing compares to actually experiencing everything the system can do on a day-to-day basis.

“Seeing really is believing,” said Lechtman. “People are blown away when they see what true integrated risk management can accomplish.”

For more information on Riskonnect Healthcare, visit: https://riskonnect.com/integrated-risk-management-solutions/healthcare/

For more information on Riskonnect Integrated Risk Management Solutions, visit: https://riskonnect.com/integrated-risk-management-solutions/

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Riskonnect. The editorial staff of Risk & Insurance had no role in its preparation.




Riskonnect is the only global provider of Integrated Risk Management technology solutions. Built on the world’s leading cloud platform, Riskonnect finally allows you to break down the silos and unite your entire organization.

Risk Management

The Profession

Verizon’s risk manager David Cammarata loves when his team can make a real impact on the bottom line.
By: | May 2, 2017 • 4 min read

R&I: What was your first job?

I was a financial analyst with the N.J. Casino Control Commission.

R&I: How did you come to work in risk management?

I was told at a Christmas luncheon in 2003 that I was being promoted into a new job.

R&I: What is the risk management community doing right?

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I think the risk management community is getting a lot better at utilizing big data and analytics to manage risk. Significant improvements have been made, but there is still much more room for improvement.

R&I: What could the risk management community be doing a better job of?

I think that the insurance and brokerage communities need to really start thinking about what this industry is going to look like in 10 years. They need to start addressing how they are going to remain relevant. I think that major disruptions to existing business models will occur and that these disruptions combined with innovation and technological advances may catch many of today’s industry leaders by surprise.

David Cammarata, assistant treasurer, risk management and insurance, Verizon Communications Inc.

R&I: What was the best location and year for the RIMS conference and why?

San Diego, any year.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

I think the advent of cyber risk and cyber insurance. For several years it has been, and it continues to be, the main topic of discussion at industry meetings.

R&I: What emerging commercial risk most concerns you?

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I think the most scary scenarios include a nuclear, biological, chemical or radiological event, a widespread global health epidemic and/or a widespread state sponsored cyber shutdown.

R&I: How much business do you do direct versus going through a broker?

We do almost all of our business through a broker.

R&I: Is the contingent commission controversy overblown?

No. It’s a conflict.

R&I: Are you optimistic about the U.S. economy or pessimistic and why?

Optimistic because hopefully President Trump’s policies (lower taxes and less regulation) will be pro-business and good for the economy.

R&I: Who is your mentor and why?

My dad, who passed away many years ago. He was very influential during the formative years of my career. He taught me how important integrity and reputation were to your brand and he had a very strong work ethic.

R&I: What have you accomplished that you are proudest of?

I would have to say raising two awesome kids. My daughter is graduating from James Madison University this year as co-valedictorian. My son is finishing his sophomore year at Rutgers and has near perfect grades. But more importantly, both of my kids have turned out to be really good people.

R&I: How many emails do you get in a day?

A lot.

“I love it when the risk management organization is able to contribute in a way that makes a real impact to the corporation’s overall objectives. On several occasions we have been able to make real contributions to the bottom line.”

R&I: What is your favorite book or movie?

“My Cousin Vinny.” That movie makes me laugh no matter how many times I watch it.

R&I: What’s the best restaurant you’ve ever eaten at?

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My dad used to take me to a place called Chick & Nello’s. It was an Italian place that did not have a menu. They came to your table and told you the two or three items they were making that day. The food was out of this world.

R&I: What is your favorite drink?

Iced tea. The non-alcoholic kind.

R&I: What is the most unusual/interesting place you have ever visited?

I can think of several places but for me it would be a tie between India and Italy. India just has such a different culture and way of life and Rome has breathtaking historical sites.

R&I: What is the riskiest activity you ever engaged in?

Well, one of the best thrill rides I’ve been on was Kingda Ka at Great Adventure. It feels risky but probably isn’t all that risky. I flew in a prop plane with my brother-in-law one time … that felt kind of risky. I have also parasailed, does that count? I think it definitely has to be driving on the N.J. Turnpike day in and day out.

R&I: If the world has a modern hero, who is it and why?

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What about the Fukushima 50? I don’t think I could have done what they did.

R&I: What about this work do you find the most fulfilling or rewarding?

I love it when the risk management organization is able to contribute in a way that makes a real impact to the corporation’s overall objectives. On several occasions we have been able to make real contributions to the bottom line.

R&I: What do your friends and family think you do?

I don’t think they really know. My children see me as dad; others just see me as an executive with Verizon.




Katie Siegel is a staff writer at Risk & Insurance®. She can be reached at [email protected]