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Why did the hospital administrator choose the Vice President of Human Resources to perform these new duties? Why not the Vice President of Accounting?

Why did the hospital administrator choose the Vice President of Human Resources to perform these new duties? Why not the Vice President of Accounting?

The Vice President of Human Resources has briefed you on the employee-related provisions of the new law. Although there are very few provisions that require the hospital to make significant changes to policies and procedures, there is a concern about the number of agencies that now have an added emphasis on the hospital providing high quality health care to the patients.

Vice President of Human Resources has also provided some additional information regarding how the Department of Health and Human Services, Medicare, and Medicaid have increased their oversight of all hospital operations, especially regarding the receipt of all due reimbursements. In fact, the hospital is now required to demonstrate, qualitatively and quantitatively, that the hospital is spending at least 80% of all reimbursements on patient treatments, etc., with the remaining 20% accounted for by administrative costs and profits, if any. In addition, the hospital must show it is increasing the quality of patient outcomes, along with demonstrating cost containment measures.

Considering the evolvement of the new government regulatory agency requirements for the hospital, the hospital administrator has decided to add the new role of Vice President of Risk Management to the Vice President of Human Resources’ existing job title and responsibilities.

Why did the hospital administrator choose the Vice President of Human Resources to perform these new duties? Why not the Vice President of Accounting?