A PYA Perspective: March Madness or Compliance? Is Your Program a “Slam Dunk?”
Published March 24, 2022

A PYA Perspective: March Madness or Compliance? Is Your Program a “Slam Dunk?”

Thoughts, Experiences, and Stories From the Field by the Experts at PYA

In 1891, 131 years ago, James Naismith wrote the original rules of basketball. In the grand scheme of things, not much has changed: the ball can be thrown in any direction; one cannot run with the ball without dribbling; one cannot strike the ball with the fist; an out-of-bounds ball is thrown back in and played by the first person to touch the ball; the game will have two halves with a rest in between, and so on.

About 100 years after the rules of basketball were implemented, in 1988, the United States Sentencing Commission introduced the Federal Sentencing Guidelines for Organizations. (Coincidence? I think not. . . .) Like the rules of basketball, the sentencing guidelines for organizations have changed very little over the years. There continues to exist a requirement for an effective compliance program encompassing the Guidelines’ seven elements of an effective compliance program (the stalwart of all compliance programs). Additionally, culpability continues to be based on six factors, and prosecutors may still provide credit to organizations based on the quality and effectiveness of a risk-based compliance program.

While it may seem the only parallel between basketball and compliance is the fact that the rules that govern them have not significantly changed since their implementation, there are other similarities. 

For example, in both basketball and compliance, a game plan is essential. Otherwise, time and resources are wasted. Further, an effective game plan is a foundational component of success and must be put into action appropriately and in a proactive manner. In order to develop and implement an effective game plan and achieve a winning record, the game plan must be formulated to include a dynamic strategy. Similarly, healthcare organizations must develop and implement an effective compliance program plan that considers the organization’s strategic initiatives and focuses on proactively identifying and assessing potential and/or actual organizational risks, thereby winning the regulatory compliance game. In both instances, the plan must be flexible to adapt to industry and organizational changes, allowing the ability to pivot between offense and defense, make substitutions, and review plan performance. 

Another parallel: analyzing the stats. A winning team invests time and effort analyzing player statistics and game films to better itself and defend against opponents. Successful teams operate from a place of strength and adopt new strategies to address their weaknesses. The compliance risk assessment serves a similar purpose for an organization’s compliance program. Effective compliance programs seek to identify and understand their weaknesses and areas of risk, as well as the best ways to improve their performance (aka stats). This might include the addition of resources (players), more training (extra workouts), or an update to the compliance program plan or compliance policies and procedures (aka trades and substitutions).

The final similarity between basketball and compliance programs is the importance of strong leadership. When a basketball team has a lackluster season, and the players are not motivated, the coach may be chastised for insufficient enforcement of compliance with the rules, deficient controls over team activities, and a lack of measuring and monitoring team outcomes. Sound familiar?? Similarly, in terms of the sentencing guidelines for organizations, this would be the same as neglecting to have sufficient compliance program oversight by an organization’s leadership and board. As in 1988, the board and executive leaders are required to be knowledgeable about the compliance program, have sufficient oversight of it, and ultimately be responsible for ensuring that the program achieves effective outcomes.

As James Naismith once said, “Be strong in body, clean in mind, and lofty in ideals.” Now, 131 years later, these words still ring true for basketball, as well as for compliance. Rock Chalk! (A bit of basketball fun from a diehard Jayhawk fan.)

If you would like more information about establishing an effective compliance program, or would like assistance with any matter related to compliance, strategy and integration, or valuation, one of our executive contacts would be happy to assist. You may email them below, or call (800) 270-9629.

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