Assessing the Health-Care Risk: The Clinical-VaR, a Key Indicator for Sound Management

Enrique Jiménez-Rodríguez, José Manuel Feria-Domínguez and Alonso Sebastián-Lacave
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Enrique Jiménez-Rodríguez: Department of Financial Economics, Pablo de Olavide University, 41013 Seville, Spain
José Manuel Feria-Domínguez: Department of Financial Economics, Pablo de Olavide University, 41013 Seville, Spain
Alonso Sebastián-Lacave: International Cooperation Andalusian Agency (AACID), Seville 41012, Spain

IJERPH, 2018, vol. 15, issue 4, 1-17

Abstract: Clinical risk includes any undesirable situation or operational factor that may have negative consequences for patient safety or capable of causing an adverse event (AE). The AE, intentional or unintentionally, may be related to the human factor, that is, medical errors (MEs). Therefore, the importance of the health-care risk management is a current and relevant issue on the agenda of many public and private institutions. The objective of the management has been evolving from the identification of AE to the assessment of cost-effective and efficient measures that improve the quality control through monitoring. Consequently, the goal of this paper is to propose a Key Risk Indicator (KRI) that enhances the advancement of the health-care management system. Thus, the application of the Value at Risk (VaR) concept in combination to the Loss Distribution Approach (LDA) is proved to be a proactive tool, within the frame of balanced scorecard (BSC), in health organizations. For this purpose, the historical events recorded in the Algo-OpData ® database (Algorithmics Inc., Toronto, ON, Canada, IBM, Armonk, NY, USA) have been used. The analysis highlights the importance of risk in the financials outcomes of the sector. The results of paper show the usefulness of the Clinical-VaR to identify and monitor the risk and sustainability of the implemented controls.

Keywords: health-care; adverse event (AE); medical error (ME); clinical-value at risk; performance; quality improvement; key risk indicator (KRI); cost-effectiveness and efficiency measures (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2018
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