Healthcare providers operate in an increasingly complex environment, and are themselves becoming increasingly complex in terms of scale, structures, service offerings, revenue models, and other elements. Risk and exposure to unanticipated losses is directly proportionate to increases in complexity, and as current circumstances demonstrate, the business results of such exposure can be severe. As the United States healthcare system makes the profound transition from fee for service to value-based care, we believe healthcare providers should examine their existing governance structures to ensure they are evolving in sync with their risk appetites and profiles. With the fast-paced organizational changes underway in response to the current pandemic, COVID-19 is serving as a catalyst to intensify this imperative. A structured and holistic approach to enterprise risk management (ERM) is emerging as a newly-defined best practice in a post-COVID-19 world for complex healthcare providers.
This installment of the FORWARD communication series focuses on Deep Market Understanding, one of the five fundamental priorities of Risk Capability. Within it, we share recommendations to improve the effectiveness of your organization's current governance structure with respect to identification and management of enterprise-wide risk.