What does loss reduction focus on in risk management?

Loss reduction in the context of risk management primarily aims to minimize the potential negative impacts of risks that can arise within a healthcare institution. By focusing on managing claims and preparing records and personnel, healthcare organizations can approach risk more systematically. This involves identifying potential areas of liability, such as incidents that may lead to claims, ensuring appropriate documentation, and training staff to handle situations that could result in losses.

Effective claims management helps to prepare for situations when legal action is taken or when issues arise, aiming to protect the institution's interests proactively. Proper record-keeping is vital as it can serve as evidence in legal matters and help in assessing the effectiveness of risk management strategies.

In contrast, the other options do not contribute to the objective of loss reduction in the same way. Reducing staff could impair patient care and increase risk, increasing patient wait times directly affects patient satisfaction and quality of care, and merely documenting interactions without an overall strategy does not necessarily mitigate risk. Hence, managing claims and preparing records and personnel is central to the goal of reducing losses in healthcare risk management.