Internal Risk Memo

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
Note: The assessments in this course build upon each other, so you are strongly encouraged to complete them in a sequence.
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.
If a risk management team asked you to research and summarize financial risks in your organization today, would you know 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, which contains important information on the following topics:

Regulations.
Risk Management.
Risk Sharing.
Risk Financing.

As you prepare to complete this assessment, you may want to think about other related issues to deepen your understanding or broaden your viewpoint. You are encouraged to consider the questions below and discuss them with a fellow learner, a work associate, an interested friend, or a member of your professional community. Note that these questions are for your own development and exploration and do not need to be completed or submitted as a part of your assessment.
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
Note: This assessment must be completed before starting Assessment 3.
Imagine yourself in the role of a risk manager. Select a topic related to risk financing and identify a risk financing issue. This issue may be from a selected organization or from your 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-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: 23 double-spaced pages for the written portion of the assessment.
Number of resources: A minimum of three resources.
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.