Types of Financial Risks in Healthcare

Types of Financial Risks in Healthcare
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Types of Financial Risks in Healthcare
Healthcare organizations take many financial risks in the course of their operations. One type of financial risk is a cybersecurity-related risk. Healthcare organizations deal with patient information on a day-to-day basis. In the era of electronic health records (EHR), the risk of cyber-attacks on healthcare organizations cannot be ignored. Any breach of patient data in healthcare organizations has serious financial ramifications. According to Blake et al. (2017), a data breach of patient records costs healthcare organizations approximately $363 per record. The financial losses arise from both government-related fines and loss of healthcare consumers.
The second type of financial risk that healthcare organizations face arises from legal issues. Healthcare organizations incur heavy financial losses arising from legal risks. Legal issues and risks in healthcare usually stem from lawsuits. According to Sage and Underhill (2020), malpractice is a significant liability for healthcare organizations, resulting in high financial losses. Healthca...