CPHRM Loss Prevention 2 — Questions and Answers
Question 1: Which concept describes the systematic identification of potential loss-causing events before they occur?
- Reactive risk management
- Prospective risk identification (Correct answer)
- Retrospective claims analysis
- Concurrent utilization review
Correct answer: Prospective risk identification
Prospective risk identification involves anticipating potential hazards and failures before an adverse event takes place.
Question 2: A hospital implements a 'no-lift' policy for patient transfers. This is an example of which loss prevention strategy?
- Risk transfer
- Risk retention
- Risk avoidance
- Risk reduction (Correct answer)
Correct answer: Risk reduction
A no-lift policy reduces the frequency and severity of staff musculoskeletal injuries, making it a risk reduction strategy.
Question 3: Under the Joint Commission standards, which action is FIRST required after a sentinel event is identified?
- File an insurance claim
- Conduct a root cause analysis (Correct answer)
- Notify state licensing board
- Suspend involved staff
Correct answer: Conduct a root cause analysis
The Joint Commission requires organizations to perform a root cause analysis to identify contributing system factors after a sentinel event.
Question 4: Which type of insurance covers a healthcare organization for claims arising from errors in professional medical services?
- General liability insurance
- Directors and officers insurance
- Professional liability insurance (Correct answer)
- Property insurance
Correct answer: Professional liability insurance
Professional liability (malpractice) insurance covers claims resulting from errors or omissions in the delivery of professional healthcare services.
Question 5: A risk manager notices a pattern of falls in one unit after reviewing incident reports. What is the BEST next step?
- Immediately report to the board
- Conduct a focused process improvement initiative for that unit (Correct answer)
- Dismiss the pattern as statistical noise
- Transfer patients to other units
Correct answer: Conduct a focused process improvement initiative for that unit
Aggregated incident data indicating a unit-specific pattern should trigger a focused process improvement to address contributing factors.
Question 6: What does 'failure mode and effects analysis' (FMEA) primarily help organizations accomplish?
- Analyze past claims for frequency
- Proactively identify and prioritize process vulnerabilities (Correct answer)
- Determine insurance premium rates
- Respond to regulatory citations
Correct answer: Proactively identify and prioritize process vulnerabilities
FMEA is a prospective risk assessment tool that identifies where and how a process might fail and ranks failure modes by risk priority.
Question 7: Which federal law mandates reporting of certain adverse events and unsafe conditions in healthcare facilities?
- HIPAA
- EMTALA
- The Patient Safety and Quality Improvement Act (Correct answer)
- The Stark Law
Correct answer: The Patient Safety and Quality Improvement Act
The Patient Safety and Quality Improvement Act (PSQIA) created a voluntary, confidential reporting system to improve patient safety through analysis of adverse events.
CPHRM Loss Prevention 2
Which concept describes the systematic identification of potential loss-causing events before they occur?