International Journal of
Innovation, Management and Technology

Abstract

The concept of risk management in hospital had its beginning in the 1970s in the USA, following court decisions which established the corporate liability of the hospital for the quality of care and holding medical staff liable for quality of care. The formal program of risk management is a necessity in all health care facilities in the USA and a prerequisite for accreditation of hospitals. Progressive hospitals in developing countries with western trained physicians are initiating the process of risk management as a safeguard against becoming defendants in major medico-legal lawsuits by making risk management an integral component of hospital management.