Healthcare Law Risk Management and Liability

Healthcare Law Risk Management and Liability Order Instructions:

Part I

Laws that control healthcare come from four sources. One source is state and federal written constitutions.

Healthcare Law Risk Management and Liability
Healthcare Law Risk Management and Liability

•Identify and explain the three other sources of laws that control healthcare.

Part II

Review the article by Curtis (Chapter 4) that appears on the background reading page. Prepare a paper that answers the questions and meets the criteria below. Here are the four topics.


* Why We Make Mistakes

* Local Culture and Safety culture

* Assessment of Safety Culture

* A Fair and Just Culture
1. Explain the central idea of each of the four areas.
2. Which of the four do you feel is the most important and why?
3. What does it mean to be accountable?
4. What does “hindsight bias” mean?

SLP Assignment Expectations
1. Limit your responses to a maximum of 1 page for Part I and three pages for Part II, not including title and reference list pages.
2. Be sure to utilize at least 3-4 scholarly references to support your discussions.
3. Be sure to properly cite your references within the text of your assignment and listed at the end.

Module 1 – Background

Healthcare Law, Risk Management, and Liability

Required Reading

Bromiley, Philip, et al. “Enterprise Risk Management: Review, Critique, and Research Directions.” Long Range Planning 48.4 (2015).

Curtin, M.A. (2011) Quality Improvement, Patient Safety & Efficiency in Outpatient Practice. Chapter 4, pages 41 to 57.

Neuberger, B. & Shoemaker, C.B. (n.d.) The legal basis of public health. Retrieved from Legal basis of public health.pdf

Pekkinen, L. and Aaltonen, K. (2015) Risk Management in Project Networks: An Information Processing View. Technology and Investment, 6, 52-62.

Simkins v. Moses H. Cone Mem. Hosp. 323 F.2d 959 (4th Cir. 1963) and the opinion of Sobeloff, Chief Judge.

The Purpose and Goals Of Risk Management. May 19, 2010 – Risk Management in the Health care Setting.

The Role of Risk Management in Healthcare Operations. Sharon Hall (October 2010) Parker, Smith & Feek.

Healthcare Law Risk Management and Liability Module Overview

Part I – Healthcare Law

The healthcare industry is suffused with the law. As an “enterprise” (i.e., business, venture) the healthcare industry is subject to the principles that affect all businesses (everything from antitrust to zoning). On the other hand, as a distinct system or practice that saves lives, there is a complex system of regulations peculiar to healthcare. Accordingly, students of healthcare administration are asked to become familiar with the law and legal system. Many decisions and everyday actions were taken by healthcare administrators have legal implications. Furthermore, students must understand basic legal principles well enough to recognize when professional legal advice is needed.

We emphasize that the American judicial system is made up of two separate court systems: the federal court system and the state court systems.

We will cover different federal agencies involved in regulating healthcare.

Part II – Risk Management and Liability Healthcare Law Risk Management and Liability

The purpose of a risk management program is to reduce the number of patient injuries and minimize the exposure of an organization to lawsuits. An effective risk management program includes a monitoring system that identifies potential risks to patients and staff. Information gathered is used to improve patient care and treatment practices.

In risk management, steps are taken on a team-effort basis to improve the quality of care and eliminate or minimize the number of accidents that become potential lawsuits. Liability insurers have been strong proponents of risk management; in many cases, insurers have cut premiums for physicians and healthcare organizations who adopt risk management practices.

Healthcare Law Risk Management and Liability Sample Answer

Legal Aspects SLP Module 1


This paper intends to discuss the legal aspects. The paper will address two parts of the legal aspects.

Part I

Sources of laws used in controlling health care

The first source of laws used in controlling health care is regulations shaped by agencies mandated with administration such as the United States Food and Drug Administration agency (“Case in Health Care Management”, 2014). The agency is responsible for protecting the public in the United States from being sold; unsafe foods, hazardous drugs, perilous medical devices, precarious cosmetics, along with various other hazardous products.  Thus, annually the FDA is responsible for regulating more than $1 trillion products, which is equal to one-fourth of the entire spending by United States consumers (Mead, 2014). The FDA also gives protection to patients’ rights along with patients’ safety regarding clinical trials in reference to innovative medical products. Furthermore, FDA monitors how drug promotional activities are conducted by device manufacturers, and also regulates how packaged foods are labeled. Additionally, FDA monitors how safe the country’s blood supply is (Mead, 2014).

The second source of laws used in controlling health care is rulings made in court. The courts are responsible for examining whether proposed policies are aimed at achieving the health interests of the public (Rowe, 2012). Thus, the courts should give a clear definition of the proposed policies and their purpose. Furthermore, courts should provide protection against biases in making decisions, hence facilitating public debates. The third source of laws used in controlling health care is common law. Notably, common law is influential in ensuring that confidentiality is exercised between doctors and their patients (Rowe, 2012).

Part II

The fundamental idea of why people make mistakes

People make mistakes due to possession of a poor insight regarding the things they do well, along with the things they do poorly. Thus, if an individual had an enhanced insight then it is likely that they will do more things that they formerly did as opposed to the things they did later. Additionally, people make mistakes due to the deprivation of sleep or being unhappy. Other people make mistakes due to over-optimism, which provides them with a sham judgment of confidence (“Case in Health Care Management”, 2014). Furthermore, when an individual relies on their memory, they are more likely to make mistakes since memory is meant to be for reconstruction as opposed to reproduction.

The fundamental idea of local culture along with safety culture

In any organization, acts that are based on the approach of improving the safety of patients are referred to as safety culture. However, improving the safety of patients involves identification of the history of the practice, recognition of leadership, appreciation of staff experience and working within available budget concerns, which all constitute to local culture. Thus, the local culture is responsible for setting appropriate behavior or fostering unsafe behavior within the workplace (“Case in Health Care Management”, 2014). Furthermore, local culture is responsible for guiding staff decisions on different questions.

The fundamental idea of assessment on safety culture

When assessing safety culture the first step involved is to evaluate the safety culture being practiced at the time. Currently, two existing organizations conduct assessments on safety culture through offering questionnaires to be used in utilization, evaluation, and an indication of a baseline for practicing a culture of patient safety (“Case in Health Care Management”, 2014). The two organizations are AHRQ which stands for Agency for Healthcare Research and Quality, while the other organization is the University of Texas’s Center of Excellence for Patient Safety Research and Practice (Rowe, 2012).

The fundamental idea of a fair culture and a just culture

A fair culture involves the examination and understanding of the tolerance level involved in open communication, management of trust and maintenance of trust, along with the handling of errors through leadership (“Case in Health Care Management”, 2014). Moreover, staff members are likely to perform best when they are in an environment which is blame-free. Thus, in order to create a culture which is just, management of practice is expected to reorganize the disciplinary process (Mead, 2014).

Which among the four areas above is most important?

The most important area of the four areas is local culture along with safety culture. Notably, the local culture determines how an organization conducts its operations. The local culture determines the way an organization is accustomed to conducting its operations from a historical perspective. Thus, it is easier to identify and acknowledge any existing errors in operations being conducted by an organization (“Case in Health Care Management”, 2014). Consequently, all organizations that acknowledge local culture gain the advantage of carrying out effective plans for a safety culture. A safety culture will, therefore, involve plans that necessitate the involvement of employees in developing new plans for conducting operations in the organization.

What being accountable means of Healthcare Law Risk Management and Liability

Being accountable implies making commitments and stretching to achieve the commitments. Exercising accountability implies understanding the fact that agreeing to do something on a given day translates to making an assurance (“Case in Health Care Management”, 2014). In most cases, the assurance is made to the boss of an institution, the coworkers of the individual giving an assurance, or customers to the individual giving an assurance (Office, 2015). Accountability thus involves not having any groundwork regarding failure. Hence, an individual who is accountable always proposes methods of recovering when any plan goes wrong. Additionally, an individual who is accountable does not blame other people for mistakes that occur.

Meaning of hindsight bias and Healthcare Law Risk Management and Liability

Hindsight bias refers to an inclination that a given event may have been predictable before it occurred, despite nonexistence of a basis of prediction. Thus, the assumption by hindsight bias is that a person finds it simple to discern the appropriate way to react when an incident happens, though it is challenging to appropriately foretell the future (Office, 2015). Furthermore, hindsight bias involves judging things after they already happen. Therefore, hindsight bias has the possibility of causing memory distortion, in which recollection along with reconstruction of substances may result in false speculative outcomes.

Healthcare Law Risk Management and Liability Conclusion

Legal Aspects provide a platform for the efficient operation of activities conducted within different institutions. The essay above has conclusively discussed legal aspects. First, the essay has pointed up three sources of laws that are used in controlling health care. The three sources are agencies that make regulations, rulings made in court, and the common law. Furthermore, the essay has demonstrated fundamental ideas regarding why people make mistakes, fundamental ideas of local culture along with safety culture, the fundamental idea of assessment on safety culture and the fundamental idea of a fair culture and just culture.

Healthcare Law Risk Management and Liability References

Case in Health Care Management. (2014). The Health Care Manager, 33(3), 227-229.

Mead, J. (2014). Healthcare and Law Digest. Clinical Risk, 20(3), 76-80.

Office, L. (2015). Acknowledgment to Reviewers of Laws in 2014. Laws, 4(1), 16-17.

Rowe, S. (2012). Explaining the laws of unplanned care. British Journal Of Healthcare Management, 18(4), 192-197.

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