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Infographic: The Risk List

7 Dangerous Natural Catastrophe Risks

Dangerous weather events can wreak havoc on businesses. Presented by Travelers.
By: | September 15, 2014 • 1 min read
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The Risk List is presented by:


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The R&I Editorial Team may be reached at riskletters@lrp.com.
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2014 Risk All Stars

Universal Risk Management

The 2014 Risk All Stars overcame challenges through exceptional problem-solving, creativity, perseverance and passion.
By: | September 15, 2014 • 2 min read
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Risk management theory and practice fascinates — and can also appear so complex — because it resides in so many different professional realms and takes such different shapes.

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Some of this year’s Risk All Stars work for widely known companies with billions in assets. Others work for a nonprofit that cobbled its solutions together with government grants.

In some examples, winners of the award were armies of one, who either through specialization or a unique perspective effected sweeping change. But creativity, passion and perseverance, the traits that we base this award on, are found in every winner.

In the person of Dr. Mike Tomecek, of the Oklahoma Spine & Brain Institute, Risk & Insurance® gives an award for the first time to a neurosurgeon; perhaps it won’t be the last.

Dr. Tomecek uses electrodiagnostic functional assessments to determine whether medical hardware removal surgery is really necessary. His specific knowledge of nerve function, coupled with technology, allows him to determine whether the movements that are actually causing pain or immobility are connected to medical hardware or are coming from some other place.

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With his assessments, Dr. Tomecek acts as a patient advocate who is reducing surgeries and recommending site-specific physical therapy, a far less costly and intrusive treatment.

Risk All Stars winners Chris Chathams and Latitia Estrada are working-class heroes. These safety and human resources specialists work for the Timber Products Manufacturers Association.

The association is a trade group for smaller operators in the extremely hazardous timber industry in the Pacific Northwest. Using massive, unforgiving chain saws to bring down big trees, workers in the timber industry get hurt badly when something goes wrong.

The forestry companies that depend on the association as a safety education resource don’t have the resources to offer safety training on their own, even though such training is drastically needed.

Using grants from OSHA, Chathams and Estrada created a safety training program that in a three-year span reduced injuries for some member companies by 75 percent. That’s a lot of workers and their families suffering less trauma.

Richard Pcihoda, the director of risk management for the Pennsylvania Real Estate Investment Trust, moved with speed and effectiveness when Superstorm Sandy struck. One of PREIT’s shopping malls suffered millions in damage when the storm hit.

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But Pcihoda had planned ahead, lining up a reconstruction contractor so he didn’t have to wait in line for help after the fact. Pcihoda’s planning, and his great relationships with his adjusters, resulted in the Hudson Mall reopening a mere 17 days after the storm.

Business interruption was lessened and many jobs saved as a result.

Risk management can be a thankless job. It demands hard work and attention to detail that some people would rather not think about.

But we think about it. The 2014 Risk All Stars awards are our way of saying thanks.

Complete coverage of the 2014 Risk All Stars winners begins here.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at dreynolds@lrp.com.
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Sponsored: Lexington Insurance

The Re-Invention of American Healthcare

Healthcare industry changes bring risks and opportunities.
By: | September 15, 2014 • 5 min read
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Consolidation among healthcare providers continues at a torrid pace.

A multitude of factors are driving this consolidation, including the Affordable Care Act compliance, growing costs and the ever-greater complexity of health insurance reimbursements. After several years of purchasing individual practices and regional hospital systems, the emergence of the mega-hospital system is now clear.

“Every month, one of our clients is either being bought or buying someone — and the M&A activity shows no signs of slowing down,” said Brenda Osborne, executive vice president at Lexington Insurance Co.

This dramatic change in the landscape of healthcare providers is soon to be matched by equally significant changes in patient behavior. Motivated by growing out-of-pocket costs and empowered with new sources of information, the emergence of a “healthcare consumer” is on the horizon.

Price, service, reputation and, ultimately, value are soon to be important factors for patients making healthcare decisions.

Such significant changes bring with them new and challenging risks.

Physician integration

Although physicians traditionally started their own practices or joined medical groups, the current climate is quite the opposite. Doctors are now seeking out employment by health systems. Wages are guaranteed, hours are more stable, vacations are easier to take, and the burdens of running a business are gone.

“It’s a lot more of a desirable lifestyle, particularly for the younger generation,” said Osborne.

Brenda Osborne discusses the changing healthcare environment and the risks and opportunities to come.

Given the strategic importance of successfully integrating acquired practices into a larger healthcare system, hospitals are rightfully focused on how best to keep doctors happy, motivated and focused on patient safety.

A key issue that many hospitals struggle with is how to provide effective liability insurance for their doctors. Physicians who previously owned their practice are accustomed to a certain type of coverage and they expect that coverage to continue.

Even when operators find comparable liability insurance solutions for their doctors, getting buy-in from their staff is often an additional hurdle to overcome.

“Physicians listen to two things — physician leaders and data,” said Osborne. “That’s why Lexington provides assessments that utilize deep data analysis, combined with providing insights from leading doctors to help explain trends and best practices.

“In addition, utilizing benchmarks against peers helps to identify gaps in best practices. It’s a very powerful approach that speaks to doctors in a way that will help them improve their risk.”

Focusing on the “continuum of care”

There’s been a fundamental shift in how healthcare providers care for patients: Treatment is becoming more focused on a patient’s overall health status and related needs.

SponsoredContent_LexA cancer patient, for example, should have doctors in a number of specialties communicating and working together toward a positive patient outcome. But that means a change in thinking: Physicians need to work collaboratively with one another — not easy for individuals or groups that are used to being independent. Healthcare is a team sport.

“If there isn’t strong communication, strong leadership, and the recognition of proper treatment procedures between physicians, healthcare providers can increase the risk of error,” said Osborne. “The provider has got to treat the whole patient rather than each individual condition.”

That coordination must extend from inpatient to outpatient, especially since the ACA has led to a rapid increase in patients being treated at outpatient clinics, or via home health or telehealth to reduce the cost of inpatient care

“Home health is going be a growing area in the future,” Osborne continued. “Telehealth will become an effective and efficient way of managing and treating patients in their home. A patient might have a nurse come in and help the healthcare provider communicate with a physician through an iPad or computer. The nurse can also convey assessment findings to the physician.”

Metrics matter more than ever

Patients have not always thought of themselves as healthcare consumers, but that’s changing dramatically as they pay more out of pocket for their own healthcare. At the same time, there’s an increase in metrics and data available to the public — and healthcare consumers are drawing upon those metrics more and more when making choices that affect their health.

SponsoredContent_Lexington“Consumers are going to start measuring physicians against physicians, healthcare systems against healthcare systems. That competition will force everyone to improve the quality of care.”
– Brenda Osborne, Executive Vice President, Lexington Insurance

Think about all the research a consumer does before buying a car. Which dealership has the best price? Who provides the best service? Who’s offering the best financing deal?

“Do patients do that with physicians? No,” said Osborne. “Patients choose physicians through referrals from friends or health plans with minimal information. Patients may be putting their lives in the physicians’ hands and not know their track record.

That’s all going to change as patients’ use of data becomes more widespread. There are many web based resources to find information on physicians.

“Consumers are going to start measuring physicians against physicians, healthcare systems against healthcare systems,” said Osborne. “That competition will force everyone to improve the quality of care.”

Effective solutions are driven by expertise and vision

The rapidly evolving healthcare space requires all healthcare providers to find ways to cut costs and focus on patient safety. Lexington Insurance, long known as the leading innovative and nimble specialty insurer, is at the forefront in providing clients cutting-edge tools to help reduce costs and healthcare exposures.

These tools include:

  • Office Practice Risk Assessment: To support clients as they acquire physician practices, Lexington developed an office practice assessment tool which provides a broad, comprehensive evaluation of operational practices that may impact risk. The resulting report, complete with charts, graphs and insights, includes recommendations that can help physicians reduce risk related to such issues as telephone triage, lab results follow-up and medication management. .
  • Best Practice Assessments: High risk clinical areas such as emergency departments (ED) and obstetrics (OB) can benefit significantly from external, objective, evidence-based assessments to identify gaps and assure compliance with best practices. In addition to ED and OB, Lexington can provide a BPA for peri-operative care, prevention of healthcare-acquired infections, and nursing homes. All assessments result in a comprehensive report with recommendations for improvement and resources along with consultative assistance and support. .
  • Continuing Education: In an effort to improve knowledge, decrease potential risk and support healthcare providers in the use the most current tools and techniques, Lexington provides Continuing Medical Education credits at no cost to hospitals or their physicians.
  • Targeting the Healthcare Consumer: With Medicare reimbursement impacted by patient-satisfaction surveys, assuring a positive patient experience is more critical than ever. Lexington helps hospitals understand and improve the patient experience so they can continue to earn the trust of healthcare consumers while preserving their good reputation. .

To learn more about Lexington Insurance’s scope and depth of the patient safety consulting products and services healthcare solutions, interested brokers may visit their website.

This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Lexington Insurance. The editorial staff of Risk & Insurance had no role in its preparation.

Lexington Insurance Company, an AIG Company, is the leading U.S.-based surplus lines insurer.
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