MedEsthetics magazines offers business education and in-depth coverage of the latest noninvasive cosmetic procedures for physicians and practice managers working in the medical aesthetics industry.
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DEALING WITH DISASTER Te successful implementation of a disaster plan requires that it be comprehensive, well rehearsed and fuid. Key considerations include: What are your most critical business functions? What types of disasters are you most likely to encounter? How do you establish an emergency communications strategy to ensure that your employees are safe? How will patients��� records be accessed? How will you communicate with your patients to let them know you���re still operational? ���A good ofense is always the best defense,��� says David Shapiro, managing director of DMS Consulting, a disaster- and recovery-planning frm based in New Orleans (davidmshapiro.com). ���In the event of a disaster, many decisions must be made and the task can be overwhelming. Having a plan provides peace of mind and the ability to execute well thought-out decisions during a chaotic time.��� Begin by determining your most critical and timesensitive business functions. For a medical practitioner, the list might include front desk operations, scheduling, bookkeeping, patient management, records management and supply receiving. Once a list is created, the business functions should be classifed as high, medium or low. Priority ratings, says Gail Moraton, business resiliency manager for the Insurance Institute for Business and Home Safety (disastersafety.org), should be based on the following factors: ��� Which functions are crucial to maintain patient care and reputation? ��� How much downtime or interruption can each function tolerate? ��� Which functions are necessary to fulfll legal and fnancial obligations? Next, conduct a threat assessment. Treats, Kruger points out, can generally be broken down into intentional or accidental, as well as human-caused or natural. Human factors can be intentional, such as a terrorist act, or accidental, such as an employee inadvertently deleting a database. Natural events like foods, fres and severe thunderstorms should also be factored into the assessment. Depending on your region, natural disasters such as hurricanes, tornados or earthquakes must be considered as well. Once a list of critical functions and potential threats has been compiled, it���s time to compare the threats against each function. Tis exercise is known as a risk assessment. ���Te goal is to determine what impact a particular threat might have on individual functions and on the business as a whole,��� Kruger says. ���It���s helpful 38 JANUARY/FEBRUARY 2013 | MedEsthetics to consider the likelihood of a threat and measure that against the consequences if it were to occur.��� Upon completion of the risk assessment, it will become clear which protective measures need to be put into place. Next, write a plan that clearly states what needs to be done and who is responsible for each action in the event of a disaster. Step 1: Review Insurance Coverage According to Moraton, at least one out of every four businesses that closes because of a disaster never reopens. In some instances, the odds are even lower. Kruger cites New Orleans as an example. ���Roughly half of the businesses never reopened following Hurricane Katrina,��� he says. ���Of those that did reopen, approximately one-third closed within a year due to fnancial strain.��� Small businesses are especially vulnerable because few have the resources or knowledge to assess disaster risks and spread the risk across several geographic ���The goal is to determine what impact a particular threat might have on individual functions.��� locations. In order to cover the cost of lost income if a facility is forced to shut down temporarily, it���s a good idea to review insurance policies and consider business interruption insurance. ���If a small business owner is concerned about damage or a prolonged shutdown resulting from natural disasters or other types of incidents, having the right type of business interruption policy will protect their assets and give them peace of mind,��� says Moraton. Business interruption insurance compensates a policyholder for income lost during the period of restoration or the time necessary to repair or restore the physical damage to the covered property. Items covered include continuing expenses, the profts a practice �� THNIKSTOCK/ISTOCKPHOTO Take the Offense