For the healthcare industry, spend risk takes a similar form to the typical challenges faced by other sectors – distributed employees are making purchasing decisions that may be wasteful, wrong or fraudulent.
In response, healthcare organizations also follow a trajectory similar to others, including creating a culture of compliance to promote sound decision-making while continuously monitoring spend.
But, there’s a unique aspect to healthcare spend risk that is rather significant: regulatory compliance. Overseen by government legislation, such as the Sunshine Act, the Foreign Corrupt Practices Act and OFAC, regulatory compliance means healthcare organizations must keep tabs on dollars spent, with whom and why.
Spend risk for healthcare organizations comes in the form of people and their judgment calls, whether fraud, misuse, waste or regulation violation. This human element can have a significant impact on business transactions, cash leakage, audit costs and reputational losses – a potentially substantial impact.
To remain with federal and international regulations and reduce the risk associated with fraud, misuse and waste, healthcare leaders need continuous spend monitoring. Those that are the most successful at managing and mitigating spend risk are adopting technology to help.
With AI-powered solutions, it’s easy to monitor and analyze for spend risk proactively and ensure alignment with regulations. It’s also instrumental in detecting and documenting issues, which is critical to understanding why poor purchasing decisions are being made to guide better spend decisions and improve compliance.
Healthcare is complicated with important considerations at every level. But technology can support finance operations needs in real-time, even against high-risk variabilities.
Ready to learn more about how healthcare organizations can create a culture of compliance? Read a recent article from Oversight COO Manish Singh in Healthcare Business Today for more insights. For more information about how Oversight helps identify spend risk, request a Spend Risk Analysis.