CPHRM, Claims & Litigation Domain Overview

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Questions and Answers

What is the initial step in the claims management process?

  • Resolution
  • Investigation
  • Reporting
  • Identification (correct)

Which of the following best describes the role of a risk manager regarding insurance programs?

  • Actively managing all claims regardless of insurance type.
  • Completely uninvolved once insurance coverage is secured.
  • Limited monitoring for commercially insured organizations. (correct)
  • Focusing solely on self-insured aspects, ignoring commercial coverage.

According to the material, what constitutes a claim?

  • An attorney's initial consultation with a potential client
  • A rumor or suspicion of potential harm
  • Formal notification that monetary damages are being sought for an alleged injury (correct)
  • A patient expressing general dissatisfaction with their care

Which element is described as being essential for a successful claims management program?

<p>Support from leadership and board commitment (B)</p> Signup and view all the answers

A systematic approach to claims management aims primarily to achieve which of the following?

<p>Reduce financial loss and negative community image (A)</p> Signup and view all the answers

During the 'investigation' phase of claims management, what is a crucial consideration when using outside investigators?

<p>Ensuring they execute a confidentiality agreement compliant with HIPAA. (D)</p> Signup and view all the answers

Which activity is part of the 'Identification' stage in claims management?

<p>Establishing a system for identifying potential losses (D)</p> Signup and view all the answers

Which of the following is an element of formal risk assessment, versus informal risk assessment?

<p>Incident reporting (B)</p> Signup and view all the answers

What documentation related to a claim is time-sensitive and is used to communicate representation?

<p>Letter of representation. (D)</p> Signup and view all the answers

What action should a risk manager take if a self-insured entity faces a major claim?

<p>Actively participate in managing the claim (C)</p> Signup and view all the answers

In the context of claims management, what is 'taxonomy' used for?

<p>Benchmarking and loss runs (A)</p> Signup and view all the answers

What is the primary purpose of 'setting reserves' in claims management?

<p>Estimating the amount needed to settle a claim (A)</p> Signup and view all the answers

What is the legal definition of "Res Ipsa Loquitur?"

<p>The thing speaks for itself (B)</p> Signup and view all the answers

In legal theories, respondeat superior refers to:

<p>A master being responsible for the acts of their servant. (C)</p> Signup and view all the answers

What is the key characteristic of ostensible agency?

<p>A reasonable belief by a third party that the agent acts on behalf of the principal. (B)</p> Signup and view all the answers

Which of the following scenarios is most applicable to the legal theory of corporate negligence?

<p>A hospital failing to adequately screen physicians, resulting in harm to a patient (C)</p> Signup and view all the answers

What is the primary focus of legal theories related to 'exposures of healthcare entities'?

<p>Identifying potential sources of liability for different healthcare settings (D)</p> Signup and view all the answers

Which scenario would most likely trigger a claim related to "Emergency Medical Services (EMS)"?

<p>An ambulance crew restraining a patient against their will without proper justification (D)</p> Signup and view all the answers

According to the material, what are the four major components of controlling losses to implement when involved with Due Diligence?

<p>Due diligence, patient communication, policies and procedures and establishing risk transfers. (C)</p> Signup and view all the answers

Which of the following is correct regarding Insurer and Insured roles?

<p>It is the insurer's duty to defend and reservation of rights. (B)</p> Signup and view all the answers

Which of the following actions should the risk professional perform FIRST when a healthcare facility with a claims-made policy receives a request for demand?

<p>Notify their carrier. (B)</p> Signup and view all the answers

What is the most relevant legal theory for not retaining a surgical sponge?

<p>Res Ipsa Loquitur (C)</p> Signup and view all the answers

A hospital is being sued for the actions of one of its employees. That action resulted in hypoglycemia after a glucose level was dropped, and permanent brain damage. The hospital has already been deemed as vicariously liable. What now?

<p>The Plaintiff must now connect and prove damages. (D)</p> Signup and view all the answers

You're a risk professional working with defense council on selecting an expert witness in which to defend yourself for alleged brease cancer. Which specialist would you retain?

<p>Oncologist (B)</p> Signup and view all the answers

A hospital receives a subpoena for some Medical Records. What is the correct course of action?

<p>Notify the patient (C)</p> Signup and view all the answers

According to the materials, what can a professional do to assist?

<p>Supporting insured defendants through all phases of the litigation process. (D)</p> Signup and view all the answers

What is the primary goal of claims management strategies?

<p>To efficiently resolve claims while minimizing financial and reputational damage (C)</p> Signup and view all the answers

In the context of healthcare claims, what does the term 'PCE' stand for?

<p>Potential Compensable Event (A)</p> Signup and view all the answers

Which of the following best describes the role of 'reporting' in the claims management process?

<p>Notifying insurers about lawsuits, claims, and potential compensable events (A)</p> Signup and view all the answers

During claims management, what is the role of 'analysis and classification'?

<p>Evaluating the claim’s merit, coverage, and applicable policies (D)</p> Signup and view all the answers

What is the significance of maintaining a 'claim file'?

<p>It provides a secure and organized record of all claim-related documents (A)</p> Signup and view all the answers

Which of the following is a core tenet of Alternative Dispute Resolution (ADR)?

<p>Seeking resolution outside of traditional court proceedings (C)</p> Signup and view all the answers

Which document involved in the pleading process commands the defendant appears before a judge?

<p>Summons (C)</p> Signup and view all the answers

Identify the advantage to using ADRs as an alternative to trial.

<p>More economical (A)</p> Signup and view all the answers

In pre-trial precedures, what is a joinder?

<p>Additional defendants are added to lawsuit. (C)</p> Signup and view all the answers

Why is the initial step of claims management so very crucial?

<p>Without the first step, there is no journey at all. (D)</p> Signup and view all the answers

During Trial, there has been an incident in which the jury acted inappropriately. What do you do? What do you dooo?

<p>Seek mistrial immediately (D)</p> Signup and view all the answers

What is the key factor that determines a risk manager's role in claims management?

<p>The nature of the organization and its insurance program. (B)</p> Signup and view all the answers

What constitutes a formal claim?

<p>A formal notification that monetary damages are being sought for an alleged injury. (C)</p> Signup and view all the answers

What is the intended outcome of a systematic approach to claims management?

<p>Reduce financial loss and negative community image for a HCO. (C)</p> Signup and view all the answers

When using outside investigators during the investigation phase, what is extremely crucial?

<p>Verifying they have a confidentiality agreement in compliance with HIPAA law. (C)</p> Signup and view all the answers

What is an example of an informal risk identification system?

<p>Claims data (B)</p> Signup and view all the answers

Which is NOT a formal document typically produced during initial claims documentation?

<p>Social Media Post (B)</p> Signup and view all the answers

In claims management, what does ‘taxonomy’ aid in?

<p>Benchmarking and loss runs (D)</p> Signup and view all the answers

Which of the following is the LEAST important factor to consider during claim investigation?

<p>The potential for negative publicity. (C)</p> Signup and view all the answers

What is the purpose of a documentation checklist in the claims management process?

<p>To ensure all necessary information is gathered and organized. (D)</p> Signup and view all the answers

During claims management, what does the ‘analysis and classification’ step primarily involve?

<p>Analyzing the claim through the risk committee using facts, and considering internal and external influencing factors. (C)</p> Signup and view all the answers

In healthcare claims, what does the term ‘PCE’ refer to?

<p>Potential Compensable Event (B)</p> Signup and view all the answers

According to insurers, what action may they take to validate accuracy of the claim?

<p>They may audit for validate accuracy and completeness. (D)</p> Signup and view all the answers

What is the role of 'indemnity' in 'reserving'?

<p>The judgment (indemnity reserve) and providing for a defense and to pay for other allocated expenses related to managing a claim. (A)</p> Signup and view all the answers

What is included in Claim File Management?

<p>All documents in logical order for reference and tracking. (B)</p> Signup and view all the answers

In General Liability, what does 'Slander' refer to?

<p>Verbal remarks which are injuring somebody. (D)</p> Signup and view all the answers

What is the primary difference between 'Res Ipsa Loquitur' and 'Negligence per se'?

<p>Negligence per se exists when somebody speeds through a stop sign, whereas res ipsa loquitur is when an object is retained. (C)</p> Signup and view all the answers

Which of the following examples would be best described as 'Negligence Per Se'?

<p>A physician injuring a patient while practicing without a current medical license. (A)</p> Signup and view all the answers

How hospitals not reporting physician impairment to state licensing boards could lead to what?

<p>Corporate Negligence (B)</p> Signup and view all the answers

In states where hospitals employ physicians, which legal doctrine could apply?

<p>Respondeat Superior (B)</p> Signup and view all the answers

If a doctor who is not directly employed seems to work for a hospital, they may be considered what?

<p>An ostensible agent. (A)</p> Signup and view all the answers

When organizations assess acquisitions in healthcare, what is one of key factors?

<p>Failure to exercise due diligence in overseeing the affairs of the organization before aquiring. (A)</p> Signup and view all the answers

What action can and should an enterprise risk professional do in reaction to their company suffering litigation?

<p>Offer a confidential peer support resource for unanticipated outcomes. (A)</p> Signup and view all the answers

When a healthcare facilities has been served with a demand, who is the FIRST to notify?

<p>Notify the insurer. (B)</p> Signup and view all the answers

What is the proper legal theory to use when hospitals are accused of negligence in retaining surgical sponges?

<p>Res Ipsa Loquitur (D)</p> Signup and view all the answers

Which outside specialist would you retain given a lawsuit for breast cancer?

<p>Oncologist (A)</p> Signup and view all the answers

What is the BEST reaction when a medical staff reports they accidentally saw the name of a famous celebrity?

<p>Notify the patient regarding the subpoena for an opportunity to object. (B)</p> Signup and view all the answers

To completely stop losses when thinking about Due Diligence, what are the major components?

<p>Due diligence, patient communication, Policies-Procedures &amp; risk transfer mechanisms. (C)</p> Signup and view all the answers

Which statement accurately highlights the roles/responsibilities of healthcare facilities in medical malpractice claims?

<p>Healthcare facilities have a responsibility to be forthcoming on coverage. (A)</p> Signup and view all the answers

Many processes or stages will assist in claims management. Which of the following statements aligns to such?

<p>There are 10 stages. (A)</p> Signup and view all the answers

In the lawsuit process, several things must occur. Which answer has the correct procedures (3)?

<p>Pleadings, Trials, Post-trial. (D)</p> Signup and view all the answers

What would define: document reciting all the allegations against defendant?

<p>Complaint of petition. (A)</p> Signup and view all the answers

What distinguishes a 'claim' from a 'potentially compensable event (PCE)' in healthcare risk management?

<p>A claim is a formal notification that monetary damages are sought, while a PCE may not yet involve a formal request for damages. (A)</p> Signup and view all the answers

How would a risk manager's role differ between a self-insured healthcare organization and one that is commercially insured?

<p>In a self-insured organization, the risk manager actively participates in managing claims, while in a commercially insured one, the role is limited to monitoring. (D)</p> Signup and view all the answers

Which of the following actions would be most effective in supporting healthcare staff during a high-anxiety claim event?

<p>Providing open communication, resources, and support to address their concerns. (A)</p> Signup and view all the answers

What is the most critical element in ensuring an effective claims investigation when using outside investigators?

<p>Establishing a confidentiality agreement compliant with HIPAA regulations. (D)</p> Signup and view all the answers

In what scenario would the 'corporate negligence' legal theory be most applicable?

<p>A hospital's failure to adequately vet and credential a physician, leading to patient harm. (A)</p> Signup and view all the answers

In the context of legal claims, how does 'ostensible agency' most directly impact a healthcare facility?

<p>It holds the facility liable for the actions of independent contractors if it appeared they were acting on behalf of the facility. (B)</p> Signup and view all the answers

Which statement best encapsulates the relationship between ‘benchmarking’ and claim taxonomy?

<p>Taxonomy assists in categorizing claims data to allow for benchmarking against other organizations. (C)</p> Signup and view all the answers

During claim file management, what is the primary rationale for meticulously organizing documentation in a logical order?

<p>To facilitate efficient reference, tracking, and analysis of the claim. (C)</p> Signup and view all the answers

What's the primary role of insurance coverage information within a claim file?

<p>Confirming applicable coverage and corresponding correspondences from the insurer. (C)</p> Signup and view all the answers

What is the most accurate interpretation of insurer's 'duty to defend' in the context of claim management and litigation?

<p>The insurer must provide a legal defense against any claim or suit arising from bodily injury or property damage. (A)</p> Signup and view all the answers

In the setting of claim file management, what is the correct order when arranging documents?

<p>Correspondence, medical records, investigation reports, legal papers. (D)</p> Signup and view all the answers

During the 'analysis and classification' phase of claims management, what would indicate the strongest and most suitable methodology for determining the claim?

<p>Considering documentation, relevant internal/external factors, and taxonomy. (A)</p> Signup and view all the answers

Which of the following is the LEAST accurate statement regarding legal theories?

<p>The servant is NOT liable. (D)</p> Signup and view all the answers

Why does Healthcare fail to report impairment to state licensing boards?

<p>Leads to further harm to patient. (C)</p> Signup and view all the answers

What would be NOT expected when thinking about EMS (Emergency Medical Services)?

<p>Informed Consent. (C)</p> Signup and view all the answers

If a lawsuit occurs, which Due Diligence option might prevent a legal issue from re-occuring?

<p>Policies &amp; Procedures. (D)</p> Signup and view all the answers

During the lawsuit process, match the correct order of events.

<p>Complaint, Summons, Answer. (A)</p> Signup and view all the answers

Within ADR (Alternative Dispute Resolution) what is something you would NOT consider?

<p>Hostile. (D)</p> Signup and view all the answers

Which Healthcare Providers should an expert expect to treat carefully through contracting?

<p>Each are required to be reviewed. (A)</p> Signup and view all the answers

In the event that a healthcare entity's actions result in the misinterpretation of diagnostic imaging, leading to delayed treatment and subsequent harm, which legal theory would MOST likely be central to the ensuing claim?

<p>Corporate negligence, focusing on the failure to maintain adequate protocols for image interpretation and communication. (A)</p> Signup and view all the answers

A self-insured healthcare organization discovers a historical pattern of inadequate peer review processes stemming from poor taxonomy application, leading to delayed identification of systemic risks. How would a defense attorney leverage this discovery in a subsequent claim?

<p>Substantiate 'corporate negligence' by illustrating a longstanding systemic failure to apply best practices in risk identification and mitigation. (C)</p> Signup and view all the answers

During the litigation process, plaintiffs' legal counsel requests the metadata associated with changes made to an electronic health record (EHR) after a Potential Compensable Event (PCE). The defense argues that the metadata is not subject to discovery due to privilege. Under what legal rationale would the defense prevail?

<p>The metadata represents attorney work product if the EHR changes were directed or anticipated by legal counsel. (C)</p> Signup and view all the answers

An organization's risk manager observes a pattern of Emergency Medical Services (EMS) personnel deviating from established protocols due to resource constraints. A patient subsequently experiences harm. What is the MOST relevant legal theory?

<p>Corporate negligence is implicated if the organization knowingly under-resourced the EMS, facilitating foreseeable deviations from protocol. (B)</p> Signup and view all the answers

As an enterprise risk professional, you are tasked to assess the quality of external legal counsel during the litigation management process. Which metric offers the MOST insightful assessment of their efficacy beyond readily available litigation outcomes?

<p>The frequency and detail of their communication regarding case strategy, revealing both transparency and thoroughness. (C)</p> Signup and view all the answers

In a claims-made policy, what constitutes the MOST critical action for a healthcare facility upon receiving a demand letter, considering the potential implications for coverage?

<p>Immediately notifying the insurance carrier, in strict accordance with the policy's reporting requirements. (B)</p> Signup and view all the answers

A hospital's security system malfunctions, resulting in unauthorized access to employee files, including sensitive medical information. Which of the following legal theories would be the MOST directly relevant?

<p>Corporate Negligence, specifically the failure to adequately protect confidential data. (A)</p> Signup and view all the answers

In the context of Alternative Dispute Resolution (ADR), what aspect of arbitration poses the MOST significant challenge for healthcare providers concerned with maintaining Standard of Care (SOC)?

<p>The limited scope for judicial review of arbitrator decisions, even in cases of demonstrable error. (C)</p> Signup and view all the answers

A surgery resident accidentally cuts the common bile duct during a laparoscopic procedure, which was the third such incident in the last six months at the facility. What organizational failures would MOST likely be considered when litigating corporate negligence?

<p>The systemic failure to provide adequate supervision during and training in laparoscopic procedures, highlighting a systemic disregard for patient safety. (B)</p> Signup and view all the answers

What factor most influences the extent to which a risk manager is involved in the actual claims management process?

<p>Whether or not the organization is commercially insured or has high retention, versus self-insured for its risk exposure. (C)</p> Signup and view all the answers

During claim investigation, what is the MOST crucial consideration when using outside investigators, particularly with regards to potentially discoverable information?

<p>The investigators' adherence to a confidentiality agreement compliant with HIPAA regulations and state-specific privacy laws. (C)</p> Signup and view all the answers

Considering that a systematic evaluation of a claim is essential, what's an intended outcome a healthcare organization should look for in a claims management program?

<p>To reduce the financial loss and any reputational damage linked to a claim. (B)</p> Signup and view all the answers

What is a subtle way that hospitals can be corporate negligent when thinking about staff physicians who lose staff privileges due to alcohol impairment?

<p>They should NOT report to the state licensing boards. (B)</p> Signup and view all the answers

To have the most effective claims management and to review claims and potentially prevent them, what do many organizations rely on?

<p>Formal Risk Data (C)</p> Signup and view all the answers

You are helping the defense council select an expert witness in a case regarding alleged breast cancer misdiagnosis. What would it be the ABSOLUTE BEST action?

<p>Retain outside oncologist. (A)</p> Signup and view all the answers

A claim always involves a formal lawsuit filed in court.

<p>False (B)</p> Signup and view all the answers

The claims management process begins when an event occurs and concludes with the resolution of the claim.

<p>True (A)</p> Signup and view all the answers

In a commercial insurance coverage, the facility always bears the responsibility for covering losses.

<p>False (B)</p> Signup and view all the answers

The 'identification' step in claims management involves assessing coverage and setting reserves.

<p>False (B)</p> Signup and view all the answers

A risk manager's role is the same across different organizations, regardless of their insurance program.

<p>False (B)</p> Signup and view all the answers

A 'claim' is a formal demand for monetary damages due to an alleged injury.

<p>True (A)</p> Signup and view all the answers

A claim management program's success relies solely on the efficiency of its technology.

<p>False (B)</p> Signup and view all the answers

A systematic approach to claim management aims to increase the financial loss for a healthcare organization.

<p>False (B)</p> Signup and view all the answers

An insurance policy has no impact on the claims management process.

<p>False (B)</p> Signup and view all the answers

Internal investigations are optional in claims handling.

<p>False (B)</p> Signup and view all the answers

A goal of claim management is reducing negative impacts on a hospital's image.

<p>True (A)</p> Signup and view all the answers

After a claim, setting reserves involves identifying the claimant's attorney.

<p>False (B)</p> Signup and view all the answers

Claim file management involves the logical ordering and maintaining of all documents related to a claim.

<p>True (A)</p> Signup and view all the answers

'Respondeat Superior' means an employer is never responsible for the acts of their employees.

<p>False (B)</p> Signup and view all the answers

'Vicarious liability' means imposing the same liability the employee has to another person.

<p>True (A)</p> Signup and view all the answers

Internal investigations are an optional part of most claims resolutions.

<p>False (B)</p> Signup and view all the answers

There is no difference between ostensible and apparent agency in a healthcare setting.

<p>False (B)</p> Signup and view all the answers

Corporation negligences cannot impact medical malpractice lawsuits.

<p>False (B)</p> Signup and view all the answers

In claim management, healthcare entities face limited exposures, mainly related to medical malpractice.

<p>False (B)</p> Signup and view all the answers

The goal of due diligence is to complete legal and financial review of an organization.

<p>True (A)</p> Signup and view all the answers

A hospital following defense counsel does not need to select experts witnesses for medical negligence

<p>False (B)</p> Signup and view all the answers

A claims-made insurance policy is triggered by an occurrence during the policy period.

<p>False (B)</p> Signup and view all the answers

In the context of legal theories, 'strict liability' is typically the most relevant theory for cases involving retained surgical sponges.

<p>False (B)</p> Signup and view all the answers

The final step in a lawsuit is always an agreed upon settlement.

<p>False (B)</p> Signup and view all the answers

In investigation outside or outside, there is a need to get a written description of hippa in medical investigations.

<p>True (A)</p> Signup and view all the answers

A self-insured risk manager has major responsibility for their case.

<p>True (A)</p> Signup and view all the answers

The only essential element in assessing corporate negligence is determining whether the health facility was aware of similar past incidents

<p>False (B)</p> Signup and view all the answers

It is not required to clarify reporting PCEs.

<p>False (B)</p> Signup and view all the answers

In any medical setting, a claim that results in a case will require a 'pre trial' procedure.

<p>True (A)</p> Signup and view all the answers

The only role of a risk manager regarding outside counsel is ensuring the firm bills hourly and at or below an expected amount

<p>False (B)</p> Signup and view all the answers

If a provider is employed at a hospital, a patient and their family is authorized to sue a hospital even if they were not involved in the claim.

<p>False (B)</p> Signup and view all the answers

Integrated Delivery Systems (IDS) can cannot be held vicariously liable by anyone outside of contracts.

<p>True (A)</p> Signup and view all the answers

If a healthcare enterprise receives a written demand for compensation, a risk professional needs to first analyze the situation.

<p>False (B)</p> Signup and view all the answers

If there is an unintended surgical item in a patient, strict liability is automatically the result.

<p>False (B)</p> Signup and view all the answers

An 'unstructured process' in third party dispute resolution means that nobody is authorized to create documents.

<p>False (B)</p> Signup and view all the answers

In the list of "four Ds, the damage death for an employee is the 'duty' phase.

<p>False (B)</p> Signup and view all the answers

A hospital is responsible even though they were not involved if the lawsuit involves a contracted doctor instead of employed.

<p>False (B)</p> Signup and view all the answers

In the event that there is a subpoena, a lawyer knows the most so it should be directly passed with the lawyer rather than any action happening.

<p>False (B)</p> Signup and view all the answers

In corporate liabilities , it is most reasonable to hire an orthopedic surgeon to explain to the lawyer involving breast care cancer.

<p>False (B)</p> Signup and view all the answers

If HIPAA applies, compliance with medical records may proceed regardless of the circumstances.

<p>False (B)</p> Signup and view all the answers

A claim is a formal notification seeking monetary damages for an alleged injury.

<p>True (A)</p> Signup and view all the answers

The claims management program must have commercial insurance coverage.

<p>False (B)</p> Signup and view all the answers

In claims management, 'Identification' is the final step in the process.

<p>False (B)</p> Signup and view all the answers

The risk manager's role in claims is solely based on the organization's financial data.

<p>False (B)</p> Signup and view all the answers

A document checklist is not necessary when managing claims.

<p>False (B)</p> Signup and view all the answers

Analysis and classification of a claim involves using subjective opinions.

<p>False (B)</p> Signup and view all the answers

A 'Lawsuit' refers to informal settlement discussions outside of court.

<p>False (B)</p> Signup and view all the answers

Under the principle of Res Ipsa Loquitur, the burden of proof shifts to the defendant.

<p>True (A)</p> Signup and view all the answers

The insurer always waives its rights while a claim is being investigated and defended.

<p>False (B)</p> Signup and view all the answers

General liability covers professional malpractice.

<p>False (B)</p> Signup and view all the answers

'Loss Covered' refers to whether the cause of the incident is covered by the policy.

<p>True (A)</p> Signup and view all the answers

Liability determination aims to identify the responsible party, regardless of liability type.

<p>False (B)</p> Signup and view all the answers

In Res Ipsa Loquitur, the injured person can't sue the employer for the full amount.

<p>False (B)</p> Signup and view all the answers

A claim is best managed when reserves are set after sufficient data have been obtained.

<p>True (A)</p> Signup and view all the answers

The Respondeat Superior doctrine solely applies to intentional torts committed by employees.

<p>False (B)</p> Signup and view all the answers

Taxonomy is not relevant for benchmarking and loss runs.

<p>False (B)</p> Signup and view all the answers

The insurer and the insured have the same responsibilities when handling lawsuits.

<p>False (B)</p> Signup and view all the answers

A hospital cannot be sued for corporate negligence.

<p>False (B)</p> Signup and view all the answers

In a case of apparent agency, privileges for physicians are NOT considered to be an independent contractor

<p>False (B)</p> Signup and view all the answers

In an Emergency Medical Service, false imprisonment includes restraining someone.

<p>True (A)</p> Signup and view all the answers

In claims management, a Demurrer motion is when the plaintiff requests to admit allegations of the defendant.

<p>False (B)</p> Signup and view all the answers

Due diligence in litigation solely involves assessing the legal aspects of an organization.

<p>False (B)</p> Signup and view all the answers

Insurance coverage information, as part of claim file management, is not relevant to insurers.

<p>False (B)</p> Signup and view all the answers

A speedy driver hits a child while driving without headlights is a form of Res Ispa Loquitur.

<p>False (B)</p> Signup and view all the answers

The only advantage over a trial is the negotiation of the third party.

<p>False (B)</p> Signup and view all the answers

A notification of claims is when an ER physician dumps a patient.

<p>True (A)</p> Signup and view all the answers

Providing support through all phases of the litigation process will not mitigate negative effects, such as stress.

<p>False (B)</p> Signup and view all the answers

The risk of the professional is required to retain a legal counsel is there is a claim made policy in place.

<p>False (B)</p> Signup and view all the answers

Match the following steps for claims management in the correct order.

<p>Identification = First step in recognizing a potential claim. Investigation = Gathering information and evidence related to the claim. Resolution = Final step involving settlement, denial or litigation outcome. Analysis and Classification = Categorizing the nature and cause of the claim.</p> Signup and view all the answers

Match the type of healthcare entity with its common liability exposure:

<p>Hospitals = Negligent credentialing of physicians. Emergency medical services = Abandonment of a patient. Ambulatory settings = Failure to obtain informed consent. Long-term care facilities = Patient abuse or neglect.</p> Signup and view all the answers

Match the legal theory with its definition:

<p>Res Ipsa Loquitur = The thing speaks for itself; negligence is presumed. Vicarious Liability = Responsibility for the torts of another, even if not directly at fault. Corporate Negligence = Failure of a corporation to uphold a duty of care owed to patients. Apparent Agency = An organization is held responsible for the actions of someone not its employee.</p> Signup and view all the answers

Match the following document requirements to the document in a claim.

<p>Demand Letter = Formal request from the claimant asking for damages. Letter of Representation = Document from claimant's attorney stating they represent the claimant. Preservation Notice = Document instructing that data not be destroyed because of a claim. Insurance Coverage contract = The conditions where an insurer has a responisbility to pay.</p> Signup and view all the answers

Match the following terms related to reporting with the appropriate legal requirements.

<p>Lawsuit = A formal legal action filed at court. PCE = Any occurence which is expected to be filed, but hasn't yet. Claim = Formal notification that is found during the policy of a contract. Reporting = All complaints and possible events that should be reported to the insured and insurer.</p> Signup and view all the answers

Match the following terms liability determinations with its appropriate type.

<p>GL = General Liability. PL = Professional Liability. EPL = Employment Practices Liability. D&amp;O = Directors &amp; Officers.</p> Signup and view all the answers

Match the following phrases during litigation to its appropriate step in procedure.

<p>Pleadings = Documenting commands from the defendant. Response = Filing a defendant lawsuit. Discovery = Answering questions related to the discovery. Trial Procedure = Rules to conduct proceedings.</p> Signup and view all the answers

Match each term to its corresponding description within coverage determination:

<p>Loss Covered = Determines if the insurer can reimburse. Cause of Loss Covered = Determines if intention was an action in the incident. Insured/Uninsured Parties = Helps see if insurer or outside source must provide damages. Geographical location = Ensures what geographical locations are accepted within the policy.</p> Signup and view all the answers

Match each formal vs informal system to its description:

<p>Clain Data = Details on former complaints. Incident reporting = An employee writes up what happened. Security reports = What types of incidents were reported in a security event. Hotline calls = What callers are citing and if they are reoccuring.</p> Signup and view all the answers

Match the following elements of Claims File Management to its description:

<p>Correspondences = Important tracking notes from the file handler. Expenses = All loss adjustment costs. Legal papers = Important papers with interrogatories, depositions, or summons. Insurance coverage information = The details that ensure a policy and correspondence from insurers.</p> Signup and view all the answers

Match the phrase to its description for ADRs.

<p>More economical = Savings during claim from spending. Quicker = Faster than a normal trial. Less hostile = Less conflict between parties. Private = Not open to the public.</p> Signup and view all the answers

Match the following list to its potential action to mitigate stress on employees.

<p>Peer support resource = Ensure employees have the opportunity to ensure one another. Wellness Plan = Wellness that helps build resilience and battle burnout. Employee assistance program = Tools that help battle issues that employees face. Insured defendant support = Providing support and care through each part of litigation.</p> Signup and view all the answers

Match the following items of a healthcare service to its common problem.

<p>Hospitals &amp; Medical Centers = Employees being negligent and failing to protect confidential patient data. Emergency Medical Centers = Abandonment issues. Primary care in ambulatory settings = A complete lack of negligence. Integrated delivery systems = Physicians may be UNEMPLOYED Physicians but have hospital privelages.</p> Signup and view all the answers

Match the following issues to a potential solution during a Due Diligence.

<p>Legal = Review past verdicts and ensure no criminal acitivity. Communication = Ask about expectations and where to improve. Policies = Ensure updated and appropriate procedures. Risk transfer mechanisms = Ensure employees are all on the same boat.</p> Signup and view all the answers

Match the following facts about a corporate to its impact.

<p>Facts = A patient isn't monitored and his sugar drops. Negligence Per Se = The employee disregarded Federal Laws and HIPAA. Res Ipsa Loquitur = Releasing personal information to a stranger. Medical battery = An ER dumps a patient for unknown reasons.</p> Signup and view all the answers

Match the claims management process step with its description:

<p>Identification = Recognizing potential claims through incident reports and other means. Investigation = Gathering detailed information to understand the circumstances of the incident. Coverage Determination = Analyzing the policy to determine if the claim is covered. Resolution = Concluding the claims process through settlement, denial, or litigation.</p> Signup and view all the answers

Match the legal theory with its correct description in healthcare claims:

<p>Res Ipsa Loquitur = The injury would not have occurred absent negligence and the defendant had exclusive control of the instrumentality causing the injury. Literally, the thing speaks for itself. Vicarious Liability = Responsibility for the actions of another, often an employee, due to the relationship between the parties. Corporate Negligence = The entity failed to uphold the proper standard of care owed to the patient. Ostensible Agency = An organization might be held liable for the actions or inactions of an independent contractor.</p> Signup and view all the answers

Match the type of liability exposure with the healthcare entity where it is most commonly seen:

<p>Hospitals &amp; Medical Centers = Risk is increased by negligent failure to protect the privacy of patient data. Emergency Medical Services = Increased risk of liability due to claims of abandonment or failure to appropriately treat a medical condition. Integrated Delivery Systems = Physicians with hospital privileges are not considered to be employees. Managed Care Organizations = Responsibilities and accountabilities for cost containment that expose them to liability.</p> Signup and view all the answers

Match the actions that a risk manager can take to mitigate the negative impact of litigation stress on health care professionals:

<p>Confidential Peer Support = Offering a confidential peer support resource for unanticipated outcomes. Wellness Plan = Developing a system-wide wellness plan to build resilience and address burnout. Defendents Support = Supporting insured defendants through all phases of the litigation process. Legal Counsel = Retain legal counsel who has experience with litigation cases.</p> Signup and view all the answers

Match the step with its description in defense firm performance:

<p>Select a defense firm = Selection based on expertise, availability, and caseload. Communication with defense counsel = Acknowledge receipt of tasks and work closely for investigations and depositions. Controlling legal fees = Risk manager oversight for billing billing rates. Evaluating defense firm performance = Compliance with agreements for responsiveness and cooperate; track record.</p> Signup and view all the answers

Match the following elements of a claims management program with their appropriate description:

<p>Leadership Support = Ensures resources and commitment to the program's goals. Organizational Philosophy = Guides the culture and approach to handling claims. Infrastructure &amp; Staffing = Provides the tools and personnel necessary for effective claims processing. Risk Financing Mechanism = Determines how claims will be funded (e.g., self-insured, commercial insurance).</p> Signup and view all the answers

Match the following stages in the claims management process (as outlined in the 'new' model) with their correct description:

<p>Identification = Recognizing potential claims early through various reporting mechanisms. Investigation = Gathering factual information to determine the validity and scope of the claim. Analysis and Classification = Determining the relevant legal theories and categorizing the claim. Coverage Determination = Assessing whether the insurance policy covers the claim.</p> Signup and view all the answers

Match the following elements of 'Due Diligence' regarding financial processes with their appropriate next step:

<p>Review of Legal Documents = To ensure the organization adheres to laws and regulations. Assess outstanding claims = Quantitatively assess claims, to accurately reserve funding. Review insurance and indemnification = To ensure correct management of liability. Review Patient Communication Practices = To assess compliance with legal and data privacy considerations.</p> Signup and view all the answers

Match the following 'Liability Areas' within Healthcare with a situation that would describe it:

<p>Hospitals &amp; Medical Centers = Failure to adequately vet contracted physician services, leading to patient harm. Emergency Medical Services (EMS) = Abandonment of a patient in a remote location without arranging for alternative care. Primary Care in Ambulatory settings = Failure to obtain informed consent for a novel treatment with significant risks. Long-Term Care Facilities = Systematic neglect of residents leading to malnutrition and bedsores.</p> Signup and view all the answers

Match the following 'Legal Theories' with their appropriate description:

<p>Respondeat Superior = An employer is responsible for the acts of its employees if they are committed within the scope of employment. Vicarious Liability = Imposition of liability on one person for another's actionable conduct, based solely on a relationship. Ostensible Agency = The appearance of an agency relationship where the patient reasonably believes the individual is an agent of the hospital. Corporate Negligence = A hospital is liable for its own negligence, such as failing to adequately vet physicians or maintain safe premises.</p> Signup and view all the answers

Match each Alternative Dispute Resolution (ADR) method with its most defining characteristic:

<p>Mediation = A neutral third party helps the parties reach a mutually agreeable solution, but lacks the authority to impose a decision. Arbitration = A neutral third party hears evidence and renders a binding decision, akin to a judge in court. Negotiation = Parties directly communicate and attempt to settle their dispute without a third-party facilitator. Early Neutral Evaluation = A neutral expert provides a non-binding assessment of the case's strengths and weaknesses to facilitate settlement.</p> Signup and view all the answers

Match the following elements to consider when selecting expert witnesses with their primary relevance to complex litigation management:

<p>Area of Expertise = Direct alignment with the specific medical issues and procedures in the case to establish or refute the standard of care. Communication Skills = Ability to clearly explain complex medical concepts to a jury in a way that is understandable and persuasive. Credibility and Reputation = Prior track record and standing within the medical community to bolster the expert's testimony. Availability and Compatibility = Willingness to dedicate sufficient time and resources to the case and work collaboratively with the legal team.</p> Signup and view all the answers

Match each stage of litigation management with its primary objective:

<p>Selecting Defense Counsel = Ensuring the firm has expertise in the relevant area of medical law and a proven track record. Communicating with Defense Counsel = Providing timely and accurate information to build a strong legal strategy. Controlling Legal Fees = Regularly reviewing billing statements to ensure services are aligned with the strategic goals. Evaluating Defense Firm Performance = Assessing outcomes and attorney engagement to inform future decisions.</p> Signup and view all the answers

Match the document type from the pre-trial procedures with the content that ought to be present:

<p>Summons = Notifies the defendant that a suit has been filed and compels them to appear in court. Complaint Petition = Clearly and concisely states the plaintiff's claims against the defendant. Interrogatories = Requires a party to answer specific written questions under oath. Depositions = Allows attorneys to examine witnesses under oath outside of the courtroom.</p> Signup and view all the answers

Match each type of Exposure of Healthcare Entities with a key aspect of loss mitigation

<p>Hospitals &amp; Medical Centers = Stringent vetting of physician credentials and robust informed consent policies to mitigate liability from contracted services. Emergency Medical Services (EMS) = Training programs focusing on appropriate patient assessment and transfer protocols to prevent abandonment claims. Primary Care in Ambulatory Settings = Adherence to standard of care in diagnostic testing and adequate referral procedures to prevent claims. Managed Care Organizations (MCOs) = Implementation of clear and transparent policies regarding coverage decisions to mitigate bad faith lawsuits and protect public image</p> Signup and view all the answers

Flashcards

Claims Management Process?

Examine claims management from event to resolution.

Claim vs. Compensable Event vs. Lawsuit?

Distinguish between a claim, a potentially compensable event, and a lawsuit.

Claims Management Program?

Supported by leadership, driven by org culture, anchored by infrastructure.

Risk financing: Self-insured vs. Commercial coverage

Self-insured entities bear facility responsibility; commercially insured rely on insurer responsibility

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What is a Claim?

A formal notification that monetary damages are being sought for an alleged injury.

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Claims Management Process

Involves identifying, investigating, classifying, and reporting claims.

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New Claims Management Process?

Includes identification, investigation, analysis, coverage determination, and resolution

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Risk Manager Role in Claims

Maintains data, manages workflow, supports staff during anxious events

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What is 'Claim Management Program'?

Systematic approach to lowering financial loss and protect community image.

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What is reserving?

A process that estimates the amount needed to pay a claim.

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What is an investigation?

Collecting factual evidence related to the incident

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What is classification?

Categorizing claims into internal and external influencing factors.

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Loss event?

An incident where an individual gets hurt

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What is a Lawsuit?

Filing a document stating why legal action is taken.

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Professional Liability Ds

Legal duty owed, Duty breached, Injury direct, Damages result

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What is Legal Theory?

A legal concept for applying liability.

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What is Respondeat Superior?

An employer responsible for employee's acts within their job scope.

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What is Vicarious Liability?

Liability imposed on one person for another's conduct.

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Apparent agency?

The reasonable perception of someone working there.

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What is corporate negligence?

When a health facility knew of a defect.

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Negligent Failure?

Failure to protect patient privacy.

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Assault/battery?

To treat someone without their permission.

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professional negligence?

When something bad happens in Ambulatory settings due to negligence.

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What are "Integrated Delivery Systems (IDS)"?

When the medical center does something wrong.

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Managed care groups?

Patients, providers, payers

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Breach of contract?

Liability for not honoring what the contract says

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Liability for residents who wander?

A suit when a resident is hurt.

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What is 'Due diligence'?

To review the legal and financial status.

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What to do for claim reviews

Checking records and talking with a legal counsel.

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Litigation Management

Select a defense firm; communicate with counsel; control legal fees; evaluate performance

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Insurance duty?

The insurance company must defend against any suites

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Process commandance?

Commanding appearance

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Cause of action?

When a action needs to happen

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Demurrer motion?

Defendant to admit something

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procedural law?

Law made of actions

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Post trial procedures?

Appeals go on based on this

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Arbitration?

Cheaper than trial system

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Claim Management Program key feature?

Systematic approach to decreasing financial loss and protecting community image.

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Investigative Guidelines: first steps?

Review P&Ps, interview, identify parties

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What is a letter?

Letter, preservation notice, demand

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What comprises a claims management role?

Claims management activities for notification, reserves, responses, dispositions

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What the data tell you

Open, closed claims data for risk analysis

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What is the claims management process?

Identification, Investigation, Documentation checklist, Analysis and Classification, Reporting

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What are the steps of claim resolution?

Reporting, litigation management, and settlement.

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Define lawsuit

Legal action and filed in court

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Define 'PCE'

Any occurrence for a claim/lawsuit

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Document types?

Policies and Procedures

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Incident Reporting

Objective data such as incident reports analyzed to determine causes and trends.

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Sentinel Event Tracking

Tracking unexpected occurrences resulting in serious injury or death.

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Why perform an RCA & FMEA?

Identifies root causes to prevent future incidents

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Letter of Representation

A formal statement by a lawyer to an opposing party.

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Preservation Notice

A reminder to preserve evidence related to a potential claim

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Demand Letter

A lawyer formally demands action addressing a wrong.

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Standard of Care (SOC)

A legal standard for assessing professional performance.

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Elements of Negligence

A direct injury, damages must result to the injury with expert opinion.

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Res Ipsa Loquitur

The thing speaks for itself

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Negligence Per Se

Failure to follow a statute or regulation implies Negligence

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Corporate Negligence

A principle where hospitals are liable for patient injury.

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Healthcare Entities exposure

Hospitals, Emergency Medical Service, and Ambulatory service must have some form of liability.

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Claims File Management

This involves expert reviews and investigation to identify insurance coverage information.

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Process Command

A legal term ordering a person to attend court.

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RM Plan

A plan that includes identifying problems and reporting possible costs.

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Taxonomy

A system in place for benchmarking and loss runs purposes.

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Claims Management

Leadership & board commitment, driven by organizational philosophy and culture, development of an infrastructure supported by staffing,.

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Self insured

Being actively involved in the management of the company.

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Direct Injury

A legal concept focused on injury or harm

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Employment practice liability

Discrimination acts (age, gender, disability, sexual harassment).

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Professional liability

This consists of duties breach a breach, a direct injury and expert opinion to support everything.

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General liability

Having people feel safe.

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Delineation of responsibilities:

Insurer & Insured roles

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Due diligence

A review of an organization's legal and financial status.

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Defense firm management.

Assure compliance with the agreement. Acknowledge problems, fix oversights, and track record.

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Informal Risk Identification System

Incident reporting, sentinel event tracking, RCA & FMEA, Device reporting and security reports

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Formal Risk Identification system

Claims data, Patient/staff complaints, Standardized surveys, Personal inspections, Committee minutes, Reports from Accreditation Agencies and Hotline calls.

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Risk Management plan

A system for identifying problems and potential risks resulting in loss.

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healthcare entities

Hospitals & Medical Centers, Emergency Medical Services (EMS) providers and Providers organizations

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What is an RM plan?

A plan to mitigate the impact of potential loss or problems.

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What is Risk Identification?

Systematically identifying risks so the facility can properly approach.

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What to do for risk data?

To analyze risks through data.

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What is communication?

To properly communicate with individuals in an organization, so they can come up with decisions.

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Complete definition of Due Diligence

Complete legal and financial review of an organization.

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What are the steps of trial procedure?

Formal and Informal action to come up with steps to properly work against issues.

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What's ostensible liability?

Is a type of liability that allows hospital find the person responsible.

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4Ds as they relate to professional liabilility?

There is a duty, it got breached, there was an injury, damage resulted.

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What is a preservation notice?

To give notice that evidence must remain unspoiled for a medical claim.

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What makes up the Informal Risk Identification System?

An informal system to prevent risks.

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What consist of ADRs?

An outside resolution process as they are cheaper.

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HIPPA

To be used in medical review and medical documentation.

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What is negligent credentialing?

A legal doctrine where facilities held liable for negligent physician selection.

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What is systematic reduction?

This is an approach to reducing the financial loss by implementing certain parameters.

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What is 'Reporting'?

Reporting lawsuits, claims and potential issues to the insurer.

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What are Insurer & Insured Roles?

The formal requirements by the insurer and insured.

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What are 'Unemployed' physicians?

Hospital exposure related to physicians with hospital privileges.

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What is Litigation Management?

Evaluating the defense firm

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What is a negligient allocation?

When staff is not properly trained on equipment leading to injury.

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What is 'subpoenas'?

Compromise involving legal document

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What is an experience for lawyers?

Having the ability to communicate and have the skill of lawyers and be where things are.

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What is the claim file Management?

The cost of labor, resources and efforts for a company and they are all in logical order.

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What is the role of safety in a hospital setting?

The point of identifying any problems the hospital has due to safety issues.

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Study Notes

Claims & Litigation Domain Overview

  • There will be 20 questions on Claims & Litigation

Course Instructor

  • Sahar Khalil Alhajrassi is the consultant prosthodontic and KPI practitioner of the course.
  • Holds SB-Prosth, CPHQ, CPHRM, EFQM, HMP mini-MBA titles.

Objectives

  • Understand the claims management process from the point where the event occurs, to when the claim is resolved
  • Differentiate between a claim, a potentially compensable event, and a lawsuit
  • Define the different types of liability
  • Identify the factors that may influence whether a claim is covered under an insurance policy
  • Understand legal theories for defending claims
  • Recognise exposures of healthcare entities
  • Recall the importance of controlling third party loss
  • Understand Litigation management
  • Understand Lawsuit process
  • Recognise Alternative Dispute Resolution mechanisms (ADRs)

Claims Management Program essentials

  • Needs to be supported by leadership and board commitment
  • Needs to be driven by organizational philosophy and culture
  • Needs to be anchored by the development of an infrastructure supported by staffing, policies & procedures, decision authority, program scope, and technology
  • Needs to be influenced by the organizations chosen risk financing mechanism
    • Self-insured covers facility responsibility
    • Commercial insurance covers insurer responsibility

Claims Management Process

  • The Claims Management Process consists of identification, investigation, document Checklist, analysis and classification, reporting, coverage determination, setting reserves, claims Management Strategies, and resolution

Role of risk manager in claims

  • Set by the nature of the organization and its insurance program
  • Those commercially insured have are limited to monitoring
  • Those that are self insured have to actively participate in managing
  • They have to maintain a dataset of reports regarding open and closed claims
  • Needs the ability to analyze risk data
  • Responsible for all the claims management activities:
    • Notification of carriers
    • Setting reserves
    • Response to discovery/interrogatories requests
    • Dispositions
  • Provide staff support during high anxiety times

Claims Explained

  • A claim is formal notification that monetary damages are being sought for an alleged injury
  • Policy documents offer specific definitions

Claim Management Program characteristics

  • Is a systematic approach to reduce financial loss and negative community image of a HCO
  • Should be supported by leadership
  • Should be driven by HCO culture
  • Should be anchored by HCO’s infrastructure (P&Ps, scope, technology, etc.)
  • Should be influenced by HCO risk financing method (self insured /commercial insurance)

Stages of a Claim Management Process

  • The claims management process now consists only of identification, investigation, analysis and classification, coverage determination, reporting, setting reserves, claims management strategy, and resolution

Identification Phase In Detail

  • RM Plan to include a system for identifying problems, identify potential problems resulting in loss or potential for loss, with Reporting to the Risk Manager included
  • Have Board to receive info about new claims, open & closed cases, high exposure areas and impact on risk financing program
  • Have Taxonomy for benchmarking & loss runs (insurers, underwriters, brokers)

Formal Vs. Informal Risk Identification System differences

  • Formal Identification includes incident reporting, sentinel event tracking, RCA & FMEA, device reporting, and security reports
  • Informal Risk Identification includes claims data, patient/staff compliant, Standardized surveys, personal inspections, committee minutes, reports from Accreditation Agencies, and hotline calls.

Documents to look for re Claims

  • Letter of representation
  • Preservation notice
  • Demand letter

Investigation Phase In Detail

  • Internally investigate to collect facts
  • Self insured RM will have major responsibility for it
  • If commercially insured, RM should direct and maintain control of it
  • Hire outside investigators for HIPAA compliance
  • Potential claims across insurance lines include medical claims, and worker’s compensation

Guidelines for investigating an event include:

  • Discover & Document the facts.
  • Secure Evidence.
  • Determine the applicable Standard Of Care (SOC) and legal principles.
  • Communicate with appropriate persons.
  • Protect the discovery of investigative material.
  • Review P&Ps and have Medical Record Interview staff and identify insured parties
  • Have Policy in place for doc. retention, malfunctioned equipment sequester & fill report
  • Needs to be assessed at the time of event
  • Must have Interview witness, to insurer ASAP & notify senior management
  • Be aware of statutory provisions & be under legal counsel direction

Documentation checklist must include

  • Summary of claimant’s allegations
  • Summary of facts
  • Copies of applicable policies, procedures and protocols
  • Copies of maintenance records
  • Summaries of peer review and expert reviews
  • Evaluation of damages
  • Evaluation of liability
  • Research including standard of care, applicable laws & regulations
  • Information regarding claimant’s attorney
  • Name and demographic information of organization insured parties
  • Name and demographic information of the actual or potential codefendants
  • Date of incidence (loss), claim was made, when RM was notified is also vital
  • Insurance information
  • Claimant information
  • Review of medical records
  • Details of Claimant’s injuries
  • Current status of case
  • Summary of interviews

Analysis and Classification involves

  • Analyzing the claim through committee using facts
  • Process should consider internal and external factors
  • Classification must be supported by taxonomy, and risk financing mechanism

Reporting Must Include

  • All Lawsuits, Claims & Potential Compensable Events (PCE) should be reported to insurer by the insured.
    • Lawsuit: formal legal action, filed in court
    • Claim: formal notification, defined in the policy of the contract
    • PCE: any occurrence where a claim or lawsuit is expected
  • Insurers are allowed to audit to validate accuracy and completeness

Insurer & Insured

  • Should Clarify requirements with policy, and determine the duties
  • must defend

Coverage Considerations

  • Coverage determination involves checking whether:
  • loss is covered
  • cause of loss if covered (negligence, criminal, etc)
  • parties are insured
  • falls within period
  • loss location
  • insured involved

Liability determination involves what Liability Types

  • General Liability
  • Professional Liability/Medical Malpractice
  • Employment Practices Liability

Four Common Liability Types

  • General Liability: Includes slips, assault, advertising, and environmental pollution
  • Professional includes negligence or carelessness
    • Determined by 4Ds
    • Care must be exercised to determine Standard of Care
    • Negligence established by expert opinions
  • Employment includes discrimination of age, gender, etc
  • Director liability involves governing/management

Standard of Care (SOC) information needed

  • Apply measurements to determine competence of workers within the field
  • Look for rebuttable presumptions and negligence
  • "Res ispa loquitur" when "the thing speaks for itself"(retained objects)
  • Must prove law was violated, law was intended to prevent injury, law was there to protect

Identifying Negligence

  • A physician is negligent if hurt while performing medicine without a medical license
  • If an ER physician dumps patient and releases info, professional disregarded federal laws

Financial Steps to Claims File Management

  • Claims should be reserved as soon as possible if there is some possibility of exposure
  • Is done by the insurer or a claims professional
  • It's an art more than science, requires experience
  • Must estimate reserve settlement from the expense reserve

File Management

  • Maintain documents for logical tracking
  • Must contain Correspondences, expenses, legal papers, expert review, and insurance coverage information

Types of Agency

  • Legal Theories exist:
  • The master answers for their servants acts
  • If employees act within work, the employer must respond
  • Examples of incidents include misdiagnosis, mistakes, medication issues

Vicarious Liability

  • Imposition of liability on one person, occurs because of actionable conduct
  • Conduct is based on the relationship - which should be indirect liability
  • Employer must bear losses to encourage accident prevention

Ostensible/Apparent agency doctrine

  • Applies to independent contractors (agency)
  • Employee must serve a HCO
  • The 3rd party belief should always be considered

Corporate negligence

  • There must be a known defect
  • Defect must cause harm
  • Negligent selection

Health Entities Can Face Exposure

  • Hospitals face exposure issues - including:
  • respondent superior
  • apparent agency
  • negligent info sharing
  • Consider contract review with providers
  • EMS providers can face claims if there is abandonment, assault, restraint, etc
  • Primary care faces informed consent risks
  • integrated delivery faces employed physicians and hospitals
  • managed care faces: vicarious and fiduciary losses
  • long term faces abuse of residents

Need to control losses

  • In order to control losses, you need:
  • due diligence
  • financial review
  • patient communication
  • policies/procedures
  • transfer mechanisms

Litigation Management is important

  • Must hire proper firm and check competence
  • Must communicate constantly
  • Should focus effort on keeping legal fees down
  • Always evaluate defense performance

Key Insurance Responsibilities

  • Clarify requirements with policy, and determine the duties
  • must defend

Actions on Pre Trial

  • Pleadings
  • discovery
  • motions

Steps for Lawsuits

  • Trial
  • judge or jury setting with substantive law
  • must have proceedings
  • Post Trial
  • appeal for settlement
  • negotiate if needed
  • ADRs
  • used to avoid trials
  • includes arb, med, and negotiation

Enterprise risk to consider

  • Can mitigate impacts of litigation on professionals
  • Can be done by offering confidential support
  • Building health facilities
  • Supporting claims

3rd Round Quiz Information

  • Always notify the carrier for claims-made compensation, and use Vicarious Liability for employee cases
  • Hire Oncologists where available
  • Notify patients regarding records

Additional Claims Test Information

  • In the event of a claims-made compensation plan, you must notify the carrier
  • Vicarious Liability will be used when a hospital has employees who failed protocol
  • An Oncologist is an expert for oncology cases
  • The hospital should notify the patient of records given

Q and A Round 3

  • Enterprise risk professionals can mitigate negative impact of stress by supporting defendants
  • Notify carriers, and that comes under vicarious liablity
  • Must hire oncologists to provide expertise where necessary
  • Hospitals should also notify patients of court orders.

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