#3 – UNINTENDED CONSEQUENCES OF THE OBAMA HEALTH CARE PLAN – CAPERS JONES – HEALTH@RISK

The Republicans and Democrats have been putting on a demonstration of the blind men and the elephant with their remarks about the Supreme Court ruling on the constitutionality of the Obama health care plan.

To the Democrats the plan helps everyone.  To the Republicans the plan harms every one and will endanger small businesses.

Unfortunately neither the Republicans nor the Democrats have examined the implications of this plan on patient loads for physicians, specialists, dentists, and nurses.

The new “Obamacare” plan will increase the number of U.S. patients for insured medical care by about 30% when it becomes fully active.  However there will be no increases at all in the numbers of physicians, specialists, dentists, or nurses.

There will be a number of unintended consequences of the new plan that both the Democrats and Republicans have totally ignored.  Here are the more serious consequences:

  • Some, probably most, newly insured patients will have trouble finding a primary care physician.‬
  • Many newly insured patients will have trouble finding specialists, and especially so for specialties where there is already a shortage such as obstetrics and gynecology.‬
  • ‪Currently insured patients who move to other states and other communities will have trouble finding physicians, specialists, and dentists who will accept them as patients.‬
  • ‪Hospital care may decline due to increased patient loads but no increases in nurses.‬
  • ‪Mandatory overtime for nurses will probably increase significantly due to more patients.  This is serious because nursing shortages are accelerating due to increasing retirement rates for nurses.‬
  • ‪Wait periods for elective surgery will stretch out by perhaps 50% compared to 2012.‬
  • ‪Specialized surgical procedures such as cochlear implants will probably become harder to find if hospitals have shortages of surgeons, OR nurses, and operating rooms.‬

Rhode Island is particularly vulnerable to higher patient loads because we already have shortages of physicians, specialists, nurses, and dentists.   This is due in part to our high taxes and in part to the fact that our insurance reimbursements are the second lowest in America, after Arkansas.

Every physician and dentist I know says that it is extremely difficult to attract young practitioners to Rhode Island when every other New England state has lower taxes and higher insurance reimbursements.

Rhode Island also has an increasingly high retirement rate among nurses, combined with long wait periods to enter nursing schools which discourage some would-be nurses.

There have been hundreds of articles either praising or criticizing the new Obama health care plan, but I have not seen any at all that discuss the quantitative results of increased patients loads combined with constant or declining numbers of physicians and medical personnel.

It is troubling than none of the Rhode Island congressmen have even addressed this problem.  One would expect that our delegates would be discussing what Rhode Island can do to reverse our shortages of medical personnel, but so far I have not seen anything from anyone.

These problems are not hard to study because they have already occurred in the United Kingdom, Canada, and many other countries.   It is astonishing that no one in the U.S. government seems aware of what will happen when patient loads go up and medical personnel stay flat or decline.

Summary and Conclusions

Whether or not the Obama health care plan is a good thing or a bad thing, it is going to occur in the United States for at least a period of years.   Putting aside financial and constitutional issues, the Obama health care plan will raise patient loads but does nothing at all to increase the numbers of physicians, specialists, dentists, and nurses.

The inevitable consequence of the new Obama plan will be increasing difficulty in finding physicians who will accept new patients, increasing delays in many elective medical and surgical procedures.

Possibly the most serious unintended consequence will be much tougher working conditions for nurses, which might discourage new nurses from entering the field.  Nursing shortages may also degrade hospital care or at least cause fatigue and overwork among hospital nurses.

NOTE:  Article was published previously in RI.

#3 – WHY INVEST IN YOUR ENVIRONMENTAL HANDPRINT? – JON BIEMER – ENVIRONMENT@RISK

There is a huge risk associated with exclusively focusing on the damage we do to our environment – our footprint.  The world knows that glaciers are melting, that the average temperature is rising, and that it would take eight planets worth of resources if everyone consumed as much as the American middle class.  But Katrinas, Gulf Oil Spills and Fukishima Daichis generally do not change our personal behavior.  With our current mindset we probably will not do enough to turn things around, no matter how much we recycle or how many Priuses we buy.

Better ways to practice our values are needed. The environmental handprint represents one such paradigm shift.

Simply stated, the environmental handprint is the good you do for the world.  Here are a few examples:  Exploring nature with a child, so she can grow up to care about it. Improving the quality of wind generation.  Requiring a five cent pass-through charge on paper bags in grocery stores.  Promoting organic food labeling.  Writing a book such as Sand County Almanac by Aldo Leopold, inspiration for the Wilderness Act.  Making compact fluorescent lighting user friendly.  Inventing and commercializing and buying LED lighting. Planting a tree.  `

Can you feel the positive energy exuding from these efforts, large and small?  Can you see the leverage in working with children?  Can you celebrate how some efforts keep on giving long after you and I are done?

Here are five reasons why focusing on one’s environmental handprint is a lower risk strategy than focusing on one’s footprint:

  • Creativity, idealism, love, profit, and play are more powerful motivators than guilt, admonitions and fear.  Have you noticed how fundraisers are accompanied by entertainment?  The only bad news that motivates most of us happens in our back yard.
  • A positive feedback loop tends to amplify while negative feedback tends to dampen.  Good energy from creating good things feeds upon itself.  Profit provides incentive and capital for further innovation.
  • Handprinting plays on America’s strength.  With founding principles like Liberty and Self Reliance, we have become better capitalists than stewards.
  • You can magnify your own impact by influencing others.  By designing a more efficient aircraft engine, an engineer (and associated managers, investors and technician)reduces the CO2 releases of an entire industry. By writing this article I hope to motivate you.
  • The impact of your handprint is theoretically unlimited.  You can surpass the inevitable damage you do – your footprint. In 1993 I helped organize a conference focusing on industrial energy efficiency.  It has continued biennially ever since.

Financial advisors often say, “Sure there is risk in investing in the stock market.  But there is also risk in not investing in the market.”  The market outperforms inflation in the long run, even when you take into account recessions and the great depression.

Let us invest our time, money and energy improving our environmental handprint.   Our collective returns, our legacy, will be commensurate with our effort.

Disclaimer: Your personal returns may vary.

BIO: As a project manager with Quality + Engineering and  principal of Creating Sustainability Jon Biemer focuses on Organizational Development. He and his wife live in Portland, Oregon without owning a car. Mr. Biemer is a Certified Enterprise Risk Manager and a registered Professional Mechanical Engineer.

 

 

 

#3 – SUPPLY CHAIN CONTINUITY – BETTY KILDOW – SUPPLY CHAIN @ RISK

Every company’s supply chain – from procurement through delivery and everything in between – is directly tied to cash flow, profitability, and growth, as well as to essential intangibles such as customer trust, stakeholder confidence, company reputation, and protection of the brand.  In addition, there are increasingly stringent regulations and audit requirements that apply to supply chain risk management.

When a disaster or significant disruption of operations occurs –whether it is internal or external such as a supplier failure – your operations can be slowed down or even brought to a halt, possibly with grim consequences.  Logic tells us that to successfully manage enterprise risk the supply chain must be fully considered and integrated in a comprehensive business continuity program.   Yet despite growing awareness and reminders in the form of an ongoing series of disasters experienced across the globe over the past few years, many business continuity plans still do not adequately address the supply chain.

In alignment with business continuity best practices, here are some of the initial steps to take to identify and mitigate supply chain risks when selecting suppliers.  These guidelines are equally applicable to contractors, outsourcing companies, and other business partners.

 

As a first step, map your supply chain and identify:  critical suppliers (primary and their tiers), single points of failure, single points of contact, as well as internal dependencies including the IT support needed to keep the supply chain functioning.

Caveat Emptor!  Gain an understanding of who your critical suppliers are and which ones are high risk suppliers.  Avoid taking on a risk-laden supplier by making certain each of your suppliers is capable of managing their risks and continuing to deliver at a level to meet your requirements even in the face of a disaster.

Conduct an evaluation to gain full understanding of the inherited risks that come with each supplier.  The following list of questions, while not all-inclusive, will help provide you with vital information to consider during the supplier selection process:

  •        What are their risks and vulnerabilities?
  •        Are supplier’s operations geographically dispersed?
  •        What are the supplier’s logistics risks such as possible port closures, shortage of containers for ocean shipping, and customs issues?
  •        Are there geo-political issues that can cause operational disruptions?
  •        How transparent are their operations?
  •        How vulnerable are their suppliers?
  •        How likely are they to face shortages of purchased raw materials?
  •        How financial healthy is the supplier?
  •        Do they have proven effective security to protect your company’s data and intellectual property?
  •        Will they jeopardize your ability to meet regulatory or legal requirements?
  •        Are their business ethics in alignment with yours?
  •        Does the supplier consider your company a priority customer?

Gain an understanding of suppliers’ risk management capability by asking the right questions about their business continuity program.  Some of the basic questions to ask are:

  •        Do they have a Business Continuity Program?
  •        Is it enterprise-wide or recovery of IT only?
  •        When was the plan initially develop and when was it last tested, reviewed, and updated?
  •        Has the plan been audited; if so, by whom and what were the results of the audit?
  •        Does the plan provide for continuation or restoration of operations that will allow the supplier to meet SLAs and contractual obligations?

A well-developed and maintained business continuity program is critical to successfully managing supply risk and maintaining a resilient supply chain. Taking the steps necessary to identify, assess, and manage supply chain risks will help organizations mitigate and respond to disruptions that can carry serious financial and reputational consequences.

BIO:  Betty A. Kildow, CBCP, FBCI, has been a business continuity consultant for two decades, working with a broad range of companies and organization in the development and implementation of tailored programs to manage risk.  Betty is a member of the Peer Review Panel for the Business Continuity Journal and serves as a Board Member of the Institute for Supply Management (ISM) Risk Group.  Long a strong proponent of supply chain business continuity, she is the author of “A Supply Chain Management Guide to Business Continuity” (AMACOM 2011), also available in Japanese:  事業継続」のための サプライチェーン・マネジメント 実践マニュアル, プレジデント社 (President, Inc. 2011).  She can be contacted at BettyKildow@comcast.net

#3 – UNCERTAINTY & RISK BASED DECISION MAKING, JOHN PROHODSKY –

Uncertainty and risk are often used interchangeably, however, they are different.

Is understanding the difference between risk and uncertainty really that important?  Yes, especially when developing a management or project plan.  Risk is a known or anticipated event with an unknown outcome.  Uncertainty is an event that may not be anticipated.  A good plan includes mitigations for anticipated risks. Continue reading

#3 – INTELLIGENTLY ACCEPTING RESIDUAL RISK – WYNNLEE CRISP, PROJECTS@RISK

wynnlee-crisp pixEvery project is at some risk of failing to meet one or more of its fundamental objectives:  on-time completion, budget compliance, scope fulfillment, or quality.  Many of the threats to successful project delivery can be avoided, transferred, reduced, mitigated or prevented entirely.  The remaining threats have to be accepted or the project needs to be cancelled.  By intelligently accepting the right risks, even complex and risky projects can be successful.

Continue reading