HOW TO PERFORM INTERNAL AUDIT IN HOSPITAL

HOW TO PERFORM INTERNAL AUDIT IN HOSPITAL  

INTRODUCTION 

Internal audit is a process that evaluates an organization’s operations, governing policies, risk management and quality control practices. The finery of an internal audit is the fact that it is done by an independent and unbiased organization outside of the management team of the organization being audited. 

Considering the above facts, Hospaccx team work on the market trends and dynamic regarding internal audit in hospital. This is macroficial study of How to perform Internal Audit in Hospital, if you want to get into more detail you can contact hospaccxconsulting.com 

NEED OF A HOSPITAL INTERNAL AUDIT 

• A large number of hospitals in India are engaging in internal audit to evaluate their hospital’s operational policies and risk management practices along with its financial performance.  
• This move is also enthused by the increasing number of medico-legal and litigations cases filed against hospitals in India.  
• Major areas like in-patient billing, inventory management & purchase, quality assurance & compliance management and finance department are often under the hospital internal auditor’s scanner.  

• Furthermore, an internal audit helps augment the hospital revenue by eliminating revenue leakages.

BENEFITS OF HOSPITAL INTERNAL AUDIT 

• Internal audit search throughout the organization to appraise activities, at given sufficient time and resources. 
• Internal audit are dedicated to improving systems rather than detecting errors. 

• Hospital departments and processes that are evaluated are also improved. 
• An internal audit brings a professional level of objectivity and independence to the facility. 
• It helps in protecting the assets and reduce the possibility of fraud 
• It Improves the efficiency in operations 
• It Increases financial reliability and integrity 

• Ensuring compliance with laws and statutory regulations 
• Establishing monitoring procedures 

 AREAS OF FOCUS IN HOSPITAL INCLUDE 

• Revenue Cycle Processes 
• Cash Management 
• Physician Relationships 
• Ethics and Compliance 

• Purchasing and Receiving 
• Financial Operations 
• Human Resources 
• Accounts Payable Processing 
• Policies and Procedures 

• System Implementations 
• External Audit Communications and Co-sourcing 
• Other Areas Identified by Management 

 

INTERNAL AUDIT PROCESS 

The three phases of an Internal Audit Process cover governance, risk assessment and execution of the audit plan. 

PHASE I – Internal Audit Governance 

• Review the hospital audit committee charter and align it with the Standards set forth by the Institute of Internal Auditors. 
• Develop the internal audit department and internal audit policies to establish the foundation for performing, documenting and reporting on assessments. 
• Identify the reporting relationship between the internal audit function and hospital leadership. 

 

PHASE II – Risk Assessment and Audit Planning 

• Meet with the management team and the audit committee to start the risk assessment process. 
• Conduct management surveys to help identify key risks to the hospital. 
• Compile survey responses and prioritize risks based on management feedback and self-assessment tool. 

• Create the internal audit plan of recommended audit areas to focus on. 
• Present risk assessment report and internal audit plan to senior management and the Audit Committee. 

 

PHASE III – Execute the Audit Plan 

• Perform a review from the approved audit plan. 

• Present audit findings and issue report to management. 
• Review management’s action items to meet audit recommendations and present final report to the Audit Committee. 
• Perform follow-up 60 to 90 days after receipt of action plans to assess management’s progress 

 

HOSPITAL INTERNAL AUDIT CHALLENGES  

1. There is difficulty in finding the ‘right talent’. Hiring and keeping the “right kind of talent,” is internal audit’s greatest challenge.
2. Matching the skills of internal audit personnel with an organization’s needs and demands. Most companies reported having too many internal auditors with financial reporting compliance skills. And some internal auditors are mainly focused on IT functionalities. This leaves gaps in other significant areas like Fraud prevention and detection, Tax, Controls and transactions. There is a need for greater focus on matching the skills of internal audit personnel with an organization’s needs and demands.
3. Delivering Additional Value. An ongoing challenge for internal audit relates to multiple stakeholder expectations which, at times, May differ. 
4. Use of technology in Internal audit. There is the need to do a better job at leveraging technology in internal audit including using data analytics. Many internal audit departments are struggling to find good IT auditors.
5. Gaining trust. As an internal auditor trust has to be earned and cannot be solely given on reputation. 

CONCLUSION 

In the healthcare industry, where the focus is on delivering quality clinical treatment to the patients, a hospital internal audit becomes even more vital.  The internal Audit concerns about compliance, hospital risk, resources, and technology. Adjusting to these challenges and turning them into opportunities to improve hospital performance is the main agenda of internal audit. 

Are you planning an audit for your healthcare organisation? We can help you with both internal as well as external audit for your healthcare organisation, below are the healthcare design services that we offer:- 

• Design of both internal and external audit mechanism 

• SOPs preparation 
• All the systems, documents, billing, invoices, labs etc. are verified. 
• Perform a follow-up audit  

It is the superficial and macro level study for more details kindly contact Hospaccx Healthcare business consulting Pvt. ltd on  hospaccx.india@gmail.com Or you can visit our website on hospaccxconsulting.com

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