There are numerous disasters to worry about and in this case, there

There are numerous disasters to worry about and in this case, there are specific disasters to watch out for when taking hospitals into consideration. The most probable and dangerous disaster by far that can affect a hospital would have to be natural disasters, pandemics and radiation emergencies. Natural disasters can come in many different shapes and forms, ranging from tornadoes, earthquakes, floods, avalanches and landslides if the medical center is near a mountain, volcanic activity, extreme temperatures/droughts, cyclones, hurricanes and storms. These can pose a highly dangerous risk to the facility itself and the patients that are staying in the facility. In this case, tornadoes and hurricanes that Rennova health operates are concerning natural disasters direct to the climate the facilities are in. As its no stranger to the room, pandemics are a very big risk to health companies. The current pandemic has proven that it has affected hospitals in many ways. Compared to any other industries, hospitals have the biggest burden when it comes to pandemics because any patients who are infected likely must be treated and as such hospitals become a high-risk area in a pandemic, as there’s infected patients and the staff dealing with those patients are at risk. In addition, any patients that are in the hospital for other different reasons are also subject to be at risk in a pandemic. All of this poses a high amount of danger, as hospitals must continue to operate on a 7 day-24-hour basis regardless of a pandemic happening. 2. Rennova Health, Inc. already faces a myriad of challenges concerning basic operations due to their financial issues. Their main hospital and clinic operates in rural Knoxville, Tennessee and has a 25 bed capacity. As a small hospital facility, they deal with staff shortages, and the costs brought on by the global pandemic of COVID-19. This leads to the conclusion that they would be easily overwhelmed in a disaster situation if they were the primary facility available in their area. The federal emergency management agency’s (FEMA) suggested guideline focuses on 4 key concepts: preparedness, response, recovery, and mitigation. The COVID-19 pandemic has been particularly impactful on Rennova Health services and revenue. The pandemic has led to fewer patients and an increase in costs. Rennova health has had issues with cash flow for several years and this has resulted in the inability to always make payroll on time. This further results in a high staff turnover rate. COVID-19 has increased the demand for highly skilled employees and competition to retain their services has proven difficult. Another issue facing Rennova Health services is staff shortages due to illness. As employees encounter patients, that puts them at greater risk of infection. Staff who test positive for the virus must be quarantined and this further leads to shortages. Fewer patients and staff also lead to cancelled procedures, thereby leading to lower revenues. FEMA suggests hospitals implement their suggestions according to their own capacity. Rennova has taken steps to prepare for disaster like COVID-19 such as buying protective equipment and putting processes in place for patient and worker safety. They’ve especially invested in diagnostic testing equipment that reduces the need for 24/7 lab staffs. Such equipment reduces test result times but comes with increased costs. Rennova can respond to natural disaster which are not uncommon in Tennessee. They simply have a lower capacity to handle emergency situations due to their small size and low revenues. They may be able to handle mild situations but would most likely fail to meet greater threats and disasters. 3. Prior to COVID-19 Rennova Health Inc was operating with almost no profit margins, as did many other hospitals in the rural America. The organization owned three hospitals, and a few clinics in East Tennessee. Their 2019 official 10-k form indicated that their operations would be severely impacted by the effects of a natural disaster, such as hurricane or other weather-related disasters that usually last in average about one to two weeks. Our research shows that Rennova Health Inc did not prepare their hospitals for the pandemic, they lacked funding and a proactive approach. As result they lost one of the two hospitals that the organization owned for not meeting their operation standards. The Jellico Community Hospital was forced to close by the City of Jellico due to contract violations. The City of Jellico terminated Rennova’s contract because they did not honor their agreement, to have an adequate number of staff and to operate as an acute care hospital during pandemic. 4. Rennova Health would face quite the challenge in improving their policies in the near future. Rennova has not performed well in the past 5 years and is at risk of continuing as a going concern. They have operated at a loss for several years and usually have low cash flow issues. This affects their business model of acquiring and running clusters or rural hospitals. In the past they relied of diagnostic software but have had to discontinue those operations. Those previous business components are being split and put up for sale to generate revenues. According to their recent 2021 10K report, they will focus mainly on hospital operations. They currently operate only one hospital, but plan to reopen another that closed due to COVID-19. Rennova faces an uncertain financial future which limits their capacity. To improve their policies to meet FEMA’s suggested national preparedness goal, they would need to greatly increase revenue. Their history suggests they are likely to fail in that regard. Another way to improve their policies would be to acquire new investors. This is also a challenge since their financial statements and metric of their business is quite poor. They do no pay dividends and their strategy of acquiring small cluster of hospitals has yet to pay off. Disaster preparedness does present risks for hospitals. That is especially true for a small hospital such as the one operated by Rennova Health. Such plans and processes require resources to implement and execute competently. Accepting an influx of people in need during a major emergency creates a lot of potential risks for an organization. People in those situations require a lot of help both during and after an event for their recovery. An improperly prepared hospital could face all sorts of litigation that would negatively impact their revenues. 5. One hospital center managed by Rennova Health, known to be Big South Fork Medical Center is an example of a hospital that has polarizing reviews. For instance, one reviewer claims that the hospital is understaffed and in Rennova’s 10-K there are already claims that their hospitals are understaffed and their issue is retaining employees. As well, a review of this medical center claims that the hospital is not sanitary in terms of sheets, floors and toilets. As well, there are claims the doctors can deny service even if its an emergency room medical center. However, there are satisfactory reviews saying this hospital has treated patients successfully. In an auditing perspective, the only thing that strikes me as concerning is the lack of effort regarding the medical center’s cleanliness, to which it should be reported to an inspection agency