2 - 1 Introduction to US Health Care Text by Dennis D. Pointer, Stephen J. Williams, Stephen L. Isaacs & James R. Knickman with Tracy Barr PowerPoints.

2 - 1

Introduction to US Health Care

• Text by

Dennis D. Pointer, Stephen J. Williams, Stephen L. Isaacs &

James R. Knickman with Tracy Barr

• PowerPoints by

Robin Pickering Eastern Washington University

PREVIEW

• This week’s seminar will examine governing boards and their duties in regards to a medical setting. We will also look at the different types of health care providers that create a health care team, as well as what an administrator would look for when setting up a health care team.

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Introduction to US Health Care

Chapter 2

Boards and Governance

GOVERNING BOARDSWhat is a governing board?What is a governing board?

Medical definition: Medical definition: The group in which legal authority is vested for the control of health-related institutions and organizations.

Broader definition and related terms: Broader definition and related terms: governing board - a board that manages the affairs of an institution board - a committee having supervisory powers; "the board has seven members"

• board of regents - a committee of university officers who have general supervision over the welfare and conduct of students

• board of trustees - a governing board elected or appointed to direct the policies of an educational institution

• regent, trustee - members of a governing board

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IMPORTANCE OF A BOARD

• Why are governing boards a vital part of a health care team?

• What must be in place for the board to operate?

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Core Responsibilities

1. Determine mission, vision, and values

2. Ensure a high level of management performance

3. Ensure the quality and safety of patent care

4. Ensure the organization’s financial health

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Mission Statement

• Purpose• Characteristics and values of

organization• Identify target market• Organizational philosophy and values

Serves all stakeholders!

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Ensuring Management Performance

Board CEO•Recruit and select CEO•Specify CEO performance expectations•Assess CEO performance•Adjust CEO compensation•If needed, terminate CEO

•CEO is responsible to institutes policies and strategies to carry out mission

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Ensuring Quality of Care

• Appoint member of the medical staff• Ensure quality, utilization, and risk

measurement systems are in place• Assess the quality and safety of care

for patients employees and services delivers

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Ensuring Financial Health

Budget aligned with plans?

Monitor outcomes vs. budget

Financial controls

Protect Assets

Financial objectives

Approve budget

Financial Health

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• Board Structure• Board Composition• Board Infrastructure

Board of Directors

Key Components:

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Standing Committees

• Executive• Finance• Planning or

strategy• Quality

Credentialing

• Nominating• Audit• Compensation• Quality /

Performance / Process Improvement

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Financial Status of Hospitals

•More complex health systems•Rising cost of health care•Changing regulations regarding board composition & accounting

In 2003, nearly 1/3 hospitals lost money overall… (AHA)

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• Liability of Board Members– Health Care Quality

Improvement Act of 1986 (HCQIA)

• Reporting and Disclosure of Accounting Information

• Conflict of Interest• Board Performance

Current Issues Facing Boards

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Copyright Notice

© 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the information herein.

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