Running head: A COMPARISON BETWEEN HEALTH CARE AND BANKING INDUSTRIES
A comparison between Health Care and Banking industries
Table of Contents
Abstract 3
A comparison between Health Care and Banking industries 4
1. Introduction and background information 4
2. Current practices for data security in Health Care 5
2.1. Ethical issues Faced in Healthcare Industry 5
2.2. Management Practice in the Healthcare Industry 7
3. Current best practices for data security in banking industry 9
3.1. Ethical Issues Found in the Banking Industry 9
3.2. Best practices for security in the mobile phone banking industry 11
4. A Common Ground 13
4.1. Commonality between healthcare industry and banking industry 13
5. Lessons from the Banking Industry 14
6. Recommendation and conclusion 15
Bibliography 17
Abstract
This paper is meant to draw a comparison between the healthcare and banking industry’s management system or practices by applying various ethical perspectives. It examines data security and risk management issues that surround the ethical concerns in both the healthcare and banking industry respectively. This will as well analyze the risk management practices in banking and issues such as data security, patient’s data, and ethical issues regarding practitioners’ and the network security in healthcare management. Through in depth analysis of healthcare administration, this will be able to highlight fundamental principles that guide the ethical behaviors by medical practioners including the vows of medical professionalism. In banking management, this paper will bring forth ethical issues and management with close examination of the mobile banking industry. Last step will involve description of the commonality that exists between the healthcare and banking industries.
A comparison between Health Care and Banking industries
1. Introduction and background information
The analysis is meant to examine specific segments of healthcare management practice and policy through applying various ethical perspectives. First, the paper will provide an overview of the common ethical issues that constantly affect the healthcare industry. It will tackle the issues of data security in the healthcare industry and the fundamental principles that guide such issues regarding security and other ethical behaviors of medical practioners. The elements of doctor-patient communication will also be addressed; clinical decision regarding administration of care will also be touched, and issues of direct to consumer advertising. Ethical issues will be addressed by providing examples of such situations and the ramifications that they carry.
Ethics is the knowledge that an individual or a community of people possess of what is wrong or right then doing the expected right thing. Philosophers term ethics as the basic rules by which human beings live by; otherwise known as the “science of conduct”. In the present time, the ethical ground rules are translated into laws and regulations of the land. On the other hand, business ethics, as explained by Wallace and Pekel, is necessary in the period of change, values are keenly upheld by several industries for instance health and banking industries. The sensitization of ethics in the business sector is crucial so as to guide leaders and mangers on how they are supposed act. This is more relevantly applicable to ensure that leaders all work towards acquiring the attributes of a rigid compass.
The study of ethics in the healthcare industry normally focuses on issues that arise in medical and clinical settings. The issues may include the medical research, patient autonomy and care, patient healthcare and professional relationship. The purpose of the healthcare industry is to provide services to society requiring medical attention. They are also supposed to secure and maintain the overall health for those who are sick and protect the most important values of the healthcare necessary to set the standard for the profession (Emanuel, 2000). In the healthcare industry, there is a much higher need to provide professional services over the interest of the care being provided.
In the banking industry ethical issues have been centered on professionalism on the service delivery, confidentiality of customers or clients’ data or information, and the principles of accountability (Ronald et al 1988). There is a huge threat to all channels of financial services delivery from organized criminal activity or the insider fraud. This is also followed with an increase in identity fraud, theft of customer data and fraud in financial transactions. The above issues have raised numerous concerns regarding the ethical behaviors in the banking industry with specific attention to data security.
2. Current practices for data security in Health Care
2.1. Ethical issues Faced in Healthcare Industry
The American Recovery and Reinvestment Act (ARRA) issued a lot of money in billions so as to develop a health information technology, enhance the applied use of electronic health record (EHR) systems. These EHR are used in the storage of medical records, enable access by the health practitioners to these records remotely and the desire to minimize errors accruing to such records in addition to advancing the efficiency associated with this system. In the United States, approximately 17 % and 10 % of the hospitals are in possession of an EHR system.
It was later in time that security breaches were noticed in December 2006, where Susan Harrison noticed that money was missing from accounts (Reynolds, 2009). Two employees used fake identity cards to access the medical records and took away personal information relating to 42 people, they stole money from their banks as well. Another instance is a nurse in North Carolina, who secretly took personal information belonging to 12 patients from the medical information records and used it for credit card bills using their names; she used the money to buy a television set, a $60,000 worth of merchandise as well as a lawn mower. She was imprisoned for three years in June 2006.
Healthcare organizations are therefore in high pace to put to work the new EHR system that is intended to ease the security breaches. Other hospitals are similarly in a rush to implement the Health Insurance Portability and Accountability Act which is otherwise known as the Administrative Simplification Provisions which is designed to establish standards that will uphold the confidentiality of the patient’s records.
A major concern has been focused to clinical decisions regarding the administration of prescription of medication. Of the numerous concerns in doctor patient relationships, clinical communications with regards to decisions over pharmaceutical prescriptions represents one such ethical concern (Petersen, 2008). The traditional paternalistic model of clinical decision making whereby doctors dominate and preempt the medical decisions on behalf of their patients is no longer the case. The role of the patient within the clinical interaction has been emphasized through the adoption of a strategy known as the patient centered care (Stewart et al, 1995). This system involves the physician listening keenly so as to encourage patients’ expressions regarding their own personal agenda. The form of care seeks to understand patients’ perspective, expectations and aims that would create a cooperative doctor-patient interaction. This will help them find a common ground regarding clinical and case management.
This issue also brings the aspect of protecting the information of the patient from unauthorized persons, which is considered to be private and personal. In an earlier point in time, the records of almost any patient could be accessed by anybody, this is however not the case presently. In the ancient times, the protection of patient information was an ethical standard practiced by doctors that was entrenched in the personal values of the medical staff. The Hippocratic Oath of the 4th Century; “Whatsoever things I see or hear concerning the life of men, in my attendance on the sick or even apart there from, which ought not be noised abroad, I will keep silence thereon, counting such things to be as sacred secret,.” was used by the doctors as they were being sworn into office. In the present time, there is a more complicated system that is used. The medical records of patients are allowed to flow to bring forth the desired results while at the same time creating a secure transaction of the records. Presently there is the use of Electronic Medical Records (EMRs); it is therefore not enough to protect information of the patient by relying only on the personal values of the doctors. The present system is able to offer speed, and adequate size making it free from several threats.
2.2. Management Practice in the Healthcare Industry
The healthcare industries are required to address a wide range of issues through the use of a management strategy so as to be in line with the security system rules, take for instance the HIPAA rules. It is of consideration that the Information Technology and the security professionals find the input as well as the response of the management and audit sector when modeling the strategies (Ipswitch, 2010). All sectors are supposed to be involved in all the sectors so as to create integrity of the whole process from the start to finish. Such practices may include; defining the audit policy areas, consolidating the records, monitoring the events and the production of reports for the various stakeholders.
Healthcare specific management practices are strongly related to healthcare’s quality of patients care and the productivity outcomes. Improvement in management practices in the healthcare industry is strongly associated with significant lower mortality and better financial performance. Effective management practices like competition helps to improve managerial standards. Highly qualified managers are an asset when it comes to quality management. Autonomy of the physicians or the clinical managers is a key boost to the management practices in the health care industry. Higher scoring healthcare industry is seen to be giving managers higher levels of autonomy. The autonomy aims at devolving decision making and accountability to the frontline.
It should be noted that best healthcare industry management practices are likely to have strong effects on its performance, and strong management practices are possible without high-health expenditures. The healthcare industry should project that there is significant opportunity to create the conditions associated with better management and for the lagging healthcare industries to improve their overall management scores. The drive to better healthcare management practice involves hospitals and policy-related variables, such as perceived level of competition, percentage of clinicians who are managers, hospital size, managers autonomy and ownership type.
3. Current best practices for data security in banking industry
3.1. Ethical Issues Found in the Banking Industry
The major ethical concern in the banking industry has been in the security of the finances, professionalism in the banking sector and accountability. The other concern has been based on the confidentiality of the clients’ financial information or data. This analysis takes a look at the concerns of ethical behaviors in mobile phone banking industry and its security related issues. Mobile phone banking is experiencing a high-growth phase. Over 90 companies have emerged in recent years to offer banking and payment solutions for mobile phones.
Most banking industries are facing problems relating to the security of sensitive information from rogue individuals that may come from within or without the hospital. There has been rise in the high tech as well as low tech crime that relate to the banking information; there has been wire fraud, forging of documents, credit card fraud, and check kiting and phishing fraud among others (Business-fundas, 2011). The facing of 20 years behind bars does not seemingly scare away this breach of ethics in the banking industry. The top management has been blamed for favoring and biasness as being dismissed with the promise of not repeating it again.
The development of Financial EDI, or otherwise Electronic Data Interchange, standards have been developed to be able to handle the needs of financial institutions like banks.
The problems faced by the bank are related to high cost of production and paper checks that result from high labor and material costs. But with the application of the financial electronic data interchange (EDI) it proves beneficial through its improved accuracy and speed of the process.
In mobile banking, a significant threat has been experienced to financial services delivery channel through the mobile phones with organized criminal activities, fraudsters and robbery in designated agent points. Ethical security concern is seen in measures to protect the business lifecycle of the mobile phone. It has become a new self service banking devise while striving to balance security and convenience. The overall essence of the security is to maintain the trust of the customers through continued safe usage to create a trusted environment for use.
The mobile phone banking has been successfully used as a tool for online banking, by having a confirming sms sent by the bank to the customer during an online transaction. The on going risks assessment and hardening of the chosen targets of the criminal actions remain universal ethical principles of security, as does collaboration and the law enforcement industry in crime reduction exercises.
3.2. Best practices for security in the mobile phone banking industry
Mobile banking has in the past years been attributed to major growth; most of the financial institutions are able to offer mobile services to their clients. In article from eMarketer on January 2008 projected that approximately 10% of the online banking will translate their operations to mobile banking (Association, 2011). In 2008 there were 46 million people using the online banking system, in 2010 it was projected that 30 percent of them will translate their operations to mobile banking. According to the graph below that the gap between online banking and mobile banking is reducing steadily and a projected future forecast.
There are a vast number of services that the mobile banking is able to provide ranging from; Account alerts, security alerts; Account balances, updates and history; Customer service; Bill pay, online payments; Transfer of funds and Verification of transaction.
The future promises to be more advanced with limited contact in payment, and mobile coupons among others. The main purpose of ensuring security is the desire to establish and maintain trust of the clients through its continued application so as to establish a Trusted Environment (Global, 2009). The security trend of the mobile phone as a tool for banking is composed of varied forms of phases; the physical security, account security, the software security and SIM card, client authentication security, transaction security and connection security in the network. The customer is similarly included in ensuring security through education for understanding and the creation of confidence.
The best practices to ensure security in the banking industry with reference to mobile phone banking may entail issues like; enrollment, customer access to banking on mobile devices and registration. Security and privacy of customer details, customer education on mobile phone as an instrument of value, security of software, dealing with lost or stolen mobile phones and transmission to financial services device as ATMs, and linking in to card fraud prevention for chipped SIM cards.
The first step in adopting the best practices in the banking industry is through risk assessment (Healthcare financial management association, 2008). This should be focused on ethical issues surrounding the mobile phone activity. Assessment is suppose to measure the current risks through implementing the procedures to assess and monitors the applicable regulation and guidance. It should be aimed at strengthening governance by creating policies, strengthen controls, enforcement, and continuous monitoring.
4. A Common Ground
4.1. Commonality between healthcare industry and banking industry
The use of the financial electronic data interchange by the banking industries can similarly be applied to use in the health care industry’s cash flow. On the other side, banks play an important role in the application of the EDI for the receivable accounts. The Financial electronic data interchange is important in the two industries through its major advances; it is able to give speed and accuracy. There initially, tasks like processing that needed several hours of application are now done at a faster rate. The EDI is able to issue a higher speed of payment, minimal loss of data and makes reports simple that integrates customer or patient information with the billing information. It may similarly be used to verify the eligibility insurance of a customer, when speaking about the bank or patient, when speaking of the health industry. Presently the EDIs are being advanced so as to meet more advanced demands through the application of the EDI technology.
The banking industry supports the goals of the health insurance portability and accountability act through standardization and automation of the process of the healthcare insurance transactions. The banking industry also supports the healthcare industry in establishing privacy and security standards to safeguard the confidentiality of health information. In order to reduce the healthcare costs, acts like the health insurance accountability, portability and the national hospital insurance funds requires healthcare providers and healthcare plans. This is meant to create and adopt standards for financial transactions and electronic administrative.
The banking industry has also stood out in readiness to assist the healthcare industry in meeting the public policy through provision of electronic payment and remittance, data processing and services. Financial institutions have also been providing an increasing number of financial electronic data interchange transactions including healthcare payments and other related issues. The banking industry’s unique capability to keep money and data together in payment related information flowing is more efficient than rooting payment trough a separate pipeline from the associate information. This will help in reducing the cost of healthcare and simplify administration.
5. Lessons from the Banking Industry
According to a recent survey done by the Independent Community Bankers, it presents an outcome that is quite aligned with the prevailing situation in the banking industry (Arena, 2009). The banks that are established with the community in mind have been able to develop and acquire new customers at a faster rate than there initially; 57% are getting new retail clients while 47% are getting an increase in the business customers when comparison is done to the initial year.
Such banks that are community based, though similarly faced by challenges, they offer a realistic and profitable choice to past banking methods applied. Such banks are able to meet the interests of a large number of the clients. The banks have similarly been able to treat the lower-income earners as valuable sources of opportunity. The banks similarly are able disclose their investments and methodologies applied. Another lesson that can be learnt is how effective the data security system applied is in collecting, analyzing, storing and retrieving data has made the industry to be so successful, safe and efficient in its undertakings.
Banking industry has a long history of having the strongest protection against an unauthorized customer information access. The banking industry in 1997, announced a set of principles that were aimed at emphasizing issues to do with privacy. It is important for financial institutions to have appropriate security standards and procedures with regards to access to customer information without authorization. Banking institutions also retain their credibility through a number of detailed guidance they receive from the federal and the state banking regulators concerning the information technology procedures. If the banking industry continues to work under the above mentioned premise, it will continue to be the most credible institution that extends its services to the healthcare industry.
6. Recommendation and conclusion
Security being one of the necessary considerations when it comes to mobile banking, security best practices recommends that steps should be taken to uphold the business trends of mobile phone considering that it is a new service. This service aims to balance security, efficiency as well as convenience to its customers. It therefore translates to being imperative to uphold the security of generally the whole mobile system.
Security and compliance are simple compliance that needs knowledge, planning and investment. At the final stage, what is needed is a review of the individual needs that applied and assess their successes in reference to other organizations. Though this method is not the full solution for overall compliance, it does represent the best solution to successful efforts applied.
Healthcare management presents a major challenge absorbing an increasing percentage of national income. Countries also continue to grapple with the demand of healthcare as their population’s age rise along with the living standards. As the countries seek to control the cost of the healthcare, an unbalanced cost of healthcare can carry the consequences; therefore healthcare industry focuses on enhancing the quality and productivity. Management practices should focus on improving the management system with the aim to raising both quality and productivity. They should also ensure that they instill better management practices which will form a key factor in addressing difficult challenges.
Overall system or structure of the healthcare industry is important from contextual perspective; the ethical practices of the individual providers represent a critical section of health provision and outcomes in patients (Charles, 2007). Ethical framework should prioritize the providers’ responsibility to the patient first, society, health professionals and individual provider. Physician should be dedicated to delivering competent medical care with compassion for human dignity and human rights. It should also be bound by ethical principles for the healthcare providers and the industry in general to provide quality care to every patient they serve.
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