Running Head: PLANNING

AND STRATEGY

Planning and Strategy: Compliance Planning Trident University International Kevin S. Varner Principles of Management BHS 312 Case Study Module Number 2 Coordinator Professor: Dr. Mickey Shachar Core Faculty: Monica Vargas May 8, 2011

PLANNING AND STRATEGY: Compliance Planning

Planning ranks as the most important management function. All other functions derive from it; Organizing, Staffing, Directing and Controlling will not be effective without first Planning. In healthcare two types of planning that have to be interwoven and used at all levels of the organization are Compliance Planning, and Strategic Planning. Compliance Planning in Healthcare. Compliance planning in Health care cannot be emphasized enough. Everything from the potential for waste, fraud and abuse of federal funding to possible violations of federal or state guidelines, are real possibilities in the healthcare field. To prevent these issues from happening, good organizations will create instructions for the company to operate within the required parameters. The documents created are called a compliance plan. David Glasel, in an article in Entrepreneur, said Before considering the elements and implementation of a sound compliance plan, it is important to understand the regulatory and enforcement context in which these plans function (April2007). In other words, you have to know the laws, regulation, and statutes you are planning for inside and out before you are able to create a functional compliance plan. Glasel was speaking to behavior healthcare specifically, but the principle holds true for any business, especially one that changes so frequently. The Healthcare field has legal requirements that change continuously, based on everything from new breakthroughs in science, to the current political leaders of the state your business works in. Your compliance plan needs to encompass provisions for this constantly changing environment in order to function as needed.

PLANNING AND STRATEGY: Compliance Planning

The American Medical Association (AMA) has devoted a section of their website to this very issue, and list seven elements they say should be included in every compliance plan: 1. A clear commitment to compliance. 2. Appointment of a trustworthy compliance officer with a high level of responsibility. 3. Effective training and education programs. 4. Auditing and monitoring 5. Communications 6. Internal investigation and enforcement 7. Response to identified offenses and application of corrective action initiatives. Based on these elements, the emphasis of your instructions should be on verification and adherence to the written plan. A common axiom in military leadership is Trust but Verify. Task your subordinates, and trust they will accomplish mission as directed, but make sure to verify compliance with instruction. Simply listing all the rules your organization must be compliant with is not a compliance plan. You must embed procedures to allow verification, thereby ensuring the organization is maintaining the right direction. Incorporating Strategic Planning. A different aspect of planning in an organization is Strategic Planning. In the process of creating a strategic plan three questions are answered: 1. Where are we now? 2. Where do we want to be? and 3. How do we get there? (Erven1999). This type of planning prevents a reactionary approach when running a business, or even a department in a larger organization. As a manager it is important to give direction to your people, organize your approach toward the goals of the organization, and understand how you and your people fit

PLANNING AND STRATEGY: Compliance Planning

in the overall structure of the company. Strategic planning at the highest level allows a manager to gain the required perspective to implement all the various functions a manager needs to do. Incorporating your strategic plans into your compliance planning allows for greater focus and preparation. Understanding where your organization is currently and where you want to take it gives you a better idea of what you need to get there, as described by Erven. To make sure you can accomplish everything you need to do, (to get where you want your organization to be), requires a good compliance plan. Otherwise, the route your organization is taking could be derailed by illegal activity, violation of requirements, and follow on investigations. Without a good compliance plan your strategic plans are cannot be fully formed. Conclusion In healthcare, perhaps more than any other type of organization, compliance to correct procedures, local statutes, and federal law is one of the most important functions management has. Utilized in conjunction with the strategic goals and future path of the organization, compliance planning ensures these requirements are met and the vision the company has for its future can come to fruition without hitting roadblocks. .

PLANNING AND STRATEGY: Compliance Planning

References Anonymous (2011) Compliance Planning. American Medical Association. Retrieved from: http://www.ama-assn.org/ama/pub/physician-resources/legaltopics/regulatory-compliance-topics/health-care-fraud-abuse/federal-fraudenforcement-physician-compliance/compliance-planning.page Erven, Bernard (1999) Planning. The Planning Function, Ohio State University Extension. Retrieved from http://www.ag.ohio-state.edu Glasel, David (2007) The Importance of compliance planning: compliance planning for behavior healthcare providers used to be a good idea now its essential. Entrepreneur, April, 2007 Behavior Healthcare. Retrieved from: http://www.entrepreneur.com/tradejournals/article/163471263.html