Monday, 30 January 2012
The Healthcare Industry and Reducing Compliance Liability
When a leading healthcare organization found that the costs and time that they were spending on employee background checks were not leading to the desired results, its management realized that outsourcing these functions could be a cost-effective and efficient solution. The organization had come to the conclusion that their own compliance efforts were not sufficient, and given the possibility for fines and penalties, it was clearly time to put a more effective solution into place. In addition, far too much effort was being spent on routine human resources tasks, such as unemployment insurance claims, which distracted the human resources team from carrying out the healthcare organizations core mission. Therefore, they chose to outsource employee verification procedures, including background screening as well as immigration status eligibility checks, to Pre-employ.com. We were able to save them a total of $575,000 over five years using the following solutions:
Background and Drug Screening - Savings: $2 per employee Our background checks and drug screening ensured compliance with State and Federal regulations and saved the organization 8% compared to their prior in-house procedures. Free Access to i-9/E-verify Service - Savings: $3 per employee E-verify represents the most secure and accurate method of verifying an employees immigration status as per Federal law, and besides the cost savings, use of our E-verify service guaranteed that our client would not be subject to any fines or penalties for failure to comply with ICE regulations. Income and Employment Verifications/Unemployment Insurance Claims - Savings: $2.65 per employee In addition to the cost-effectiveness of outsourcing these functions, the healthcare organization was able to better utilize its own Human Resources department to carry out its primary mission of providing the highest quality health care. By using our outsourced services and automated solutions, this healthcare organization was able to achieve cost savings that are very beneficial considering the cost constraints under which many healthcare enterprises operate at this time. Most importantly, its management could be reassured that all of its processes were being carried out by compliance professionals who therefore eliminated any possible legal liabilities which the organization could have faced for failure to comply to State or Federal regulations. Healthcare organizations need to keep human resources administrative costs as low as possible, while making sure that they do not face costly fines and penalties for failure to comply with State or Federal employment regulations. Therefore, leaders in the healthcare industry are increasingly turning to outsourced background screening contractors such as in order to improve efficiency and reduce or eliminate compliance liability. With regulations growing more complex, it is advantageous to turn to to make sure that they are properly followed, especially as outsourcing background screening is also cost-effective.