KPJ Healthcare Berhad - Annual Report 2018

46 KPJ HEALTHCARE BERHAD RISK DESCRIPTION IMPACT OF RISK ON KPJ HOW WE MANAGE THE RISK Ensuring Availability of Key Medical Staff & Consultants Growing demand for private healthcare services could potentially lead to a shortage of suitably qualified and experienced staff to provide patient centric care to our customers. In order to ensure profitable growth in line with KPJ’s long-term strategies, the expansion of KPJ’s network of hospitals and the upgrading of existing hospitals require additional suitably qualified staff to cater to growing needs. The retirement of senior doctors may also jeopardise the continuity of the talent pool in certain sub specialities. • KPJ focuses on staff retention, and pursues various training and productivity strategies to widen staff career opportunities to serve the Group. • To ensure a strong talent pipeline, KPJ has KPJUC that conducts various medical and healthcare courses from certificates to PhD level. • Our wide network of hospitals that are equipped with international standard facilities and equipment is a strong pull factor for specialist doctors to join the Group. • KPJ’s robust Clinical Governance Framework that promotes clinical safety and excellence offers a strong safety net for healthcare professionals. • Continued investment in appropriate skills development and offering a succession plan programme and reward strategy to retain our talents and professionals. Clinical Care Delivering high quality, customer focused healthcare services to provide for market needs and expectations. Failure to provide high quality patient centric care may lead to negative media comments and patients dissatisfaction that will affect KPJ’s reputation and drive away customers. • Medical Advisory Committee (MAC) as the apex clinical committee overseeing KPJ’s Clinical Governance Framework and guidelines for sound and ethical medical practices. The MAC has various sub-committees within its purview namely Clinical Governance Policy Committee, Clinical Governance Action Committee, Clinical Ethics Committee and Research & Development Committee. • Clinical Risk Management Committee (CRMC) to review and oversee the effectiveness of the clinical ERM framework, with all major clinical risks and incidents related to patient and staff safety presented to CRMC. • KPJ Patient Safety Goals under the purview of the MAC are designed to ensure all KPJ hospitals are offering patients the best care possible. • The analysis of trends of clinical outcomes are monitored and act as reference to mitigate any risk that relates to clinical and infectious disease. Government Policy & Compliance with laws, regulations and other applicable requirements KPJ operates in a highly regulated environment which includes laws passed by the Malaysian Government pertaining to private healthcare facilities such as the Private Healthcare Facilities and Services Act 1998 (Act 586) and Occupational Safety and Health 1994 (Act 514). Failure to comply to laws and regulations could result in KPJ being subject to patient claims, fines, penalties, damage to reputation, suspension from the treatment of patients, loss of operating licence or accreditation which would result in the Group not being able to operate one or more of its hospitals thus causing a reduction in earnings. • KPJ continues to strengthen its ERM framework and associated policies and procedures to ensure risks are mitigated as far as possible. • KPJ has in place significant Clinical Care processes and policies overseen by MAC and CRMC to ensure continuous compliance with existing laws, rules and regulations. • KPJ continuously engages with the Ministry of Health Malaysia to remain up to date on any potential changes in Government Policy. 1 3 2 KEY RISKS AND OPPORTUNITIES Through our risk identification and management process, KPJ diligently monitors and assesses prevailing and future risks in the healthcare sector, and identifies current emerging opportunities to add to our value creation journey.