The Importance of DataDriven Internal Audits in Healthcare
Data-driven internal audits are crucial for the success of healthcare organizations. From ensuring regulatory compliance and maintainingpatient safety tooptimizing operations, read on to learn why data-driven internal audits are essential in healthcare.
Compliance
Compliance withregulatory standards such as HIPAA is a crucial obligation for healthcare providers. These standards demand that patient health information is kept confidential and secure. Datadriven internal audits are an effective tool to assist healthcare providers in fulfilling regulatory requirements and avoiding potential fines or penalties. Additionally, these audits help healthcare organizations to detect any areas of non-compliance, such as data breaches or unauthorized access to patient information.
Check Point Research data shows that global cyber attacks surged by 38% from 2021 to 2022,with healthcare ranking among the top three most targeted industries. This is particularly alarming since cyber attacks on healthcare facilities cancause a myriad of negative consequences, such as service disruption, financial losses, legal and regulatory complications, and reputational harm.
Moreover, being able to prevent these attacks using data provided by internal audits in healthcare is not only importantfor the safety
of patients, but also their quality of care. According to a survey conducted by the Ponemon Institute, 20% of healthcare organizations reported higher patient mortality rates following a cyber attack.
Audits provideclearer pictures which allow for bettervisualization of the data. Since data-driven audits empower auditors to analyze large amounts of data and test theentire population,it helps to generate more accurate numbers.
Healthcare Risk Management
The healthcare industry is inherently risky, and internal audits play a vital role in helping healthcare providers identify and manage potential risks. By analyzing data, internal auditors can detect patterns around potential safety issues, such as medication errors, patient falls, or healthcare-acquired conditions, and provide recommendations for improvement in risk management in healthcare.
Given the extensive amount of data generated in healthcare, manual review is often infeasible. Therefore, data-driven sources enable more accurate reporting, ultimately reducingrisks.
Moreover, data can help identify and understand the risks of outliers that might be disregardedby humans due to lack of patterns or time constraints. This approach can enable better visualization of risks in a timely manner, allowing for improved task prioritization as the effects of different risks shift.
Operational Efficiency
In a survey doneby AMN Healthcare in 2022, 85% of healthcare organizations reported that they had a shortage of healthcare professionals. As a result, managerial staff is busier than ever, making it crucial to have systems in place that are quick and efficient. Additionally, due to sizable inflation throughout 2022, hospitals began 2023 with a 2% year-over-year increase in total expenses leadinghealthcare management to look for effective ways to reduce their costs.
Data-driven internal audits in healthcare can alleviate these challenges, as they help providers optimize operations. By analyzing data, auditors canidentify areas where resources can be allocated more effectively, and costs can be reduced. Healthcare audits can help identify areas where organizational processes can be improved, such as reducingwait times for appointments or streamlining the supply ordering process. This is especially important today as the healthcare industry faces growing supply chain issues and staffing shortages.
