The Importance Of Risk Transfer In Risk Management

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In general, risk financing is when a healthcare facility develops a plan to cover any possible losses affiliated with claims filed against the facility or any of its personnel. As a matter of fact, Carroll (2009), defined risk financing as “any of a number of programs implemented to pay for the costs associated with property and casualty claims and associated expenses, including insurance, self-insurance, and captive insurance companies (p. 613)”. Healthcare providers also have the ability to secure malpractice insurance outside of what their facility may offer. Granted, this will provide them with another layer of financial protection. Risk financing is an integral part of any healthcare facility’s risk management program. Consequently, a healthcare facility …show more content…

Risk transfer allows a healthcare facility to utilize a variety of methods to execute this transfer. For instance, the facility can secure an insurance plan to cover any potential losses associated with the identified risks. Also, physicians can perform the function of risk transfer, by securing a malpractice policy for themselves.
Likewise, (Rogoff, 2014) states,
Risk transfer is exactly what is means; transfer the risk from one party to another. As practitioners we already do this by acquiring malpractice insurance. There are risks for assuming care of a patient, and clinicians protect themselves from financial losses due to an accidental error with a malpractice policy. This shifts, or transfers, the medical risk to the insurance company by paying annual premiums
(p. 24).
While physicians, healthcare workers, and healthcare facilities assume some responsibility when they choose to go into the medical field there are a number of diverse ways in which they can protect or mitigate losses. Knowing and understanding risk transfer is essential for anyone in the medical field.

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