KPJ Healthcare Berhad - Annual Report 2018

OUR BUSINESS & STRATEGY OUR PERFORMANCE AND OUTLOOK OUR RESULTS OUR GOVERNANCE APPENDICES ABOUT THIS REPORT 137 KPJ HEALTHCARE BERHAD www.kpjhealth.com.my As a healthcare service provider, clinical risk forms the biggest risk class the Group faces. Therefore, the Board has entrusted the CRM committee which comprises of medical consultants of various disciplines to review and deliberate on all reported risk incidences. The minutes and decisions of this committee are presented to the MAC, which is the apex-committee for all clinical matters of the Group. Both clinical and non-clinical risk matters are also reported to the Risk and Sustainability (RSC) Committee which has oversight authority on all risk management issues of the Group. CONTROL ACTIVITIES Policies and Procedures Policies and procedures are documented comprehensively, which are reviewed regularly to ensure relevance and compliance with the current and applicable laws and regulations. These policies and procedures help to ensure that appropriate authority limits are in place, business activities are carried out according to set standards and necessary actions are taken to address and minimise risks and ensure the orderliness and continuity of business functions. Segregation of Duties The delegation of responsibilities by the Board to the Management and Operating Units are clearly defined and authority limits are strictly enforced and reviewed regularly. Different authority limits are set for different categories of managers for the procurement of capital expenditure, donations and approval of general and operational expenses. Similarly, cheque signatories and authority limits are clearly defined and enforced. Key Performance Indicator (KPI) KPIs with detailed balance scorecards are monitored and tracked to ensure the Group achieves the financial, strategic, operational and customer perspective targets that were set at the beginning of the financial year. The KPIs are cascaded down to all the operating subsidiaries in the Group. INFORMATION AND COMMUNICATION Information Technology (IT) Information and Communication Technology (ICT) continue to evolve by entering into Industry 4.0 Revolution through Artificial Intelligence and Digital Production, Internet of Things, Cloud Technology, Robotic Process Automation and Big Data. KPJ and its Corporate IT division align its ICT strategies moving ahead for the next 5 years. Hospital Information System delivering 2nd Generation product being, HITS2 and KCIS2 as cloud computing solutions and replace its 20 years old client server application solutions for 26 hospitals in 2018. Cloud Computing solutions reduce information and security risk while benefiting from Industry 4.0 initiative for collaboration and integration to improve operational efficiency. STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL Systems and processes are more integrated and provide 3 rd party integration, for instance, IBM Watson, Cognitive Machine Learning and Artificial Intelligence. Greater possibility available now to integrate with insurance companies’ systems to improve approval and payment clearance with further possibility of improving other payment methods through payment gateways. KPJ also has further plan in using AI Robotics and AI Imaging to improve services and greater integration between hospitals. Other technologies focus on wearable devices and integrate to HIS to improve wellness and care. Communication and Information Sharing The Group promotes the culture of effective communication and information sharing amongst the hospitals and key subsidiaries through the holding of functional group meetings and conferences. The objective behind these meetings and conferences is to share and reinforce key business strategies, review performance, discuss current issues and communicate new policies and procedures. Such meetings and conferences are held either on monthly, quarterly or annual basis, comprising of diverse functional groups such as hospital management, chief nursing officers, finance managers, pharmacists and risk coordinators. The Group conducts the Pedoman annual staff gathering at the beginning of every year, whereby achievements and challenges faced during the previous financial year are shared with staff, new strategic initiatives, corporate KPI and business targets for the new financial year are also presented. Insurance Coverage The Group has in place an adequate insurance coverage to protect its major assets against any mishaps that could result in material loss. The coverage is reviewed yearly taking into account the changes in risk profiles (acquisitions, claims and etc). All the staff in Group are covered by the Group Personal Accident for injuries resulting from incident or accident. All directors, medical officers and professionals of KPJ Group are covered by the Liability Insurance (Medical Malpractice Policy and Directors & Officers Policy) in respect of their potential exposure to any personal liability which may arise in the course of performing their duties. The Management and Staff of KPJ Group are also covered by the Business Travel Protector Insurance for all their business travels.