Principle and Management, Case Study Example

Compliance planning is important to health care organizations for a number of distinct reasons. A compliance plan provides a number of documents that assist the health practitioner to comply with the Government legal requirements and legislation.  At one time, this was deemed to be simply good practice, however it is now essential to include this discipline in your business. It is fair to say that many health providers still underestimate the importance of compliance planning and fail to do this.  A lot of the legal framework has been developed because of the failure in Medicare and Medicaid budgets.  e.g., “nationwide. This has account for billions of dollars big divergent from healthcare programs to inappropriate funds.” (Glasel, 2007)

The compliance plan will provide a valuable roadmap that it shows the health practitioner is maintaining compliance with these rules before any legal compliance issues arise.  It is now considered to be essential best practice for our healthcare practitioners. There are seven basic requirements for a compliance plan:

1. written code of conduct that illustrate compliance to requirements;
2. organization chart showing the responsible for compliance;
3. trainee programs to achieve compliance;
4. plan a monitoring our validation program;
5. communications plan;
6. disciplinary procedures for those in reach of plan;
7. plan for dealing with any breach of noncompliance issues.

Strategic planning is important to management in the healthcare setting because in any healthcare environment business processes are changing over time. The strategic plan examines the future state requirements of the business.  It examines the current state, and produces a gap analysis. This is an essential roadmap for dealing with organizational change and future business requirements. In most hospitals and large health authorities, strategic planning is the responsibility of the executive or board of directors.  The plan is a number of key objectives:

• illustrates how the health authority or hospital will improve performance;
• shows stakeholders the future direction of the business;
• is a barometer to demonstrate adherence to high quality health resources and services;
• shows compliance to regulate three requirements;
• shows how the vision will be met my goals and objectives.

Strategic Planning methods can be used to plan effectively for compliance planning in healthcare.  One of the most important areas being in total quality management (TQM) and ensuring that the business systems are compliant with the legal framework ” total quality management programs or human resources planning efforts. By failing to determine how compliance is related to other operations, hospitals could duplicate efforts and fail to fully comply with the law.” (Eubanks, 1992).  Above all the strategic planning process should act as a validation tool to ensure the business systems are in compliance with the legal framework and as such produce both the legal documentation required  and are compliant in performance areas cross-validated in association with the compliance plan.  Michael McLafferty of the Office of the Inspector General (OIG) raised the points ” introduce internal controls into key work processes, test the effectives of the internal controls, monitor the controls and perform routine audits.” (Michael J. McLafferty CPA, 2006).

Works Cited

Eubanks, P. (1992). Experts call for strategic planning link on ADA compliance. Hospitals .

Glasel, D. P. (2007, 4). The importance of compliance planning. Retrieved 7 23, 2010, from Behavioural Healthcare: http://www.behavioral.net/ME2/dirmod.asp?sid=&nm=&type=Publishing&mod=Publications%3A%3AArticle&mid=64D490AC6A7D4FE1AEB453627F1A4A32&id=BD991E53FDF3485D97FC17F8433C5049&tier=4

Michael J. McLafferty CPA, M. C. (2006, 5). The OIG Stresses the Importance of Internal Controls For Hospitals to Reduce Risk. Retrieved 7 23, 2010, from Amper, Politzinia and Matter: http://www.amper.com/publications/healthline/Sp06-OIG-hospitals-reduce-risk.asp