St. Michael’s Hospital: Board Governance Andrew MacNeil Student Number: 250810257 Dan Sullivan, St. Michael’s Hospital (SMH) Board Chair has been tasked to analyze and select a number of new directors for the board at St. Michael’s Hospital. Sullivan and his board must balance a volatile merger between SMH and Wellesley Central Hospital (WCH). He will be choosing four outside, independent directors from WCH’s Board and two additional medical directors to be added to the board. The mandates set forth in Health Services Restructuring Commission’s (HSRC) Commission Plan are to include faculty from Wellesley on SMH’s current Board of Directors and the Sherbourne Hospital Corporation (SHC) Board. This could prove problematic due to differences …show more content…
In the proposed restructuring plan, many of the directors who sit on SMH’s and the previous WCH Board will also sit on the to-be-formed SHC Board. Many of the existing members of WCH’s Board may have similar connections, experience, or expertise to those on SMH’s Board. In the interest of efficiency, it is important that decisions made regarding the board at one organization not be inhibited by any director’s involvement on other boards. As such, it is strongly advised that those elected to sit on the board of one organization have little to no involvement on the board of the others if at all possible. Sullivan should search for new and independent directors who can add value to the board meetings instead of detracting from it. The existing board at SMH must be sure to choose directors with skills necessary to bring an added benefit to SMH and SHC and to work effectively without conflicts of interest. As directors work together effectively to pursue the interests of their shareholders, the duty of loyalty will be upheld in each organization. This may be exemplified in a variety of different ways such as new perspectives, strong governance experience, additional expertise, or new insight into the soon-to-be acquired community operations of WCH. In addition, the Wellesley Central advisory committee may have key insights into WCH’s previous board practice. …show more content…
To fully evaluate WCH’s board, it is imperative that SMH also conduct a board evaluation of their current board. The SMH Board must understand what already exists in their own board. While the SMH Board has strong competencies in certain areas, they are severely lacking in others. With its current board structure there is no accountability to the shareholders. The Sisters of St. Joseph still control the electing of board members as well as the auditing of financial statements. With no clear expertise in either of these practices, the board must give this authority to other directors. Quick analysis of SMH’s current board shows primarily medical and healthcare representatives. Criteria such as experience in the legalities of public healthcare, policy execution, auditing and finance experience, and business experience would be considered assets to improving SMH’s Board. This issue can be resolved during the initiation process of new directors with such
Thiry served as co-chairman on the board for three years and now serves as chairmen (“Board and management”, n.d.). DaVita’s most recent board member has served for five years, the longest has served twenty-one years, and average tenure is eleven years (“Board and management”, n.d.). Board members combined experience includes management and leadership, knowledge of operations, finances and regulations in the healthcare industry, global business issues, operations and regulations, keen and in-depth knowledge of healthcare and the dialysis industries (“Board and management”, n.d). Through the combination of tenure and real-world experience, DaVita’s board offers expansive knowledge of the local and global marketplace will contribute to the sustainability of the business. None of the experience expressly covered environmental concerns, initiatives or expertise. Board members work directly with management to lead the organization in strategic decision making and thinking (Corporate governance, n.d.). Additional responsibilities include representing “the collective interests…stockholders, provide expertise and advice to the CEO, review operational plans and budgets and oversee internal controls over financial reporting” (Corporate governance, n.d.). There was no mention of evaluating management’s
Nadar, Green and Seligman first and foremost want to change the initial election process. Their idea is that the board should be made up of all persons who have never worked for the company on whose board they will be serving. There will be nine of these individuals and they will all have the assigned duties that will be discussed in the next paragraph. They will each also have a specific area of expertise relating to the well-being of the company such as finances, customer relations, legal issues, etc. They especially want the directors to be elected in a democratic manner strictly by shareholders, and all funding for c...
The board of WH Smith consists of seven members in total, which includes 4 non-executive directors and 3 executive directors. Walker Boyd is the chairman of the board and also a non-executive director, which is a member of the remuneration committee since February 2010 after the Robert Walker resignation. The Chief Executive Officer (CEO) of the company is Kate Swann. She joined the board in November 2003 and will step down as Chief Executive on 30 June 2013. Other members of the Board are in charge of different parts of company, but have worked as non-executive and executive not more than 10 years. This kind of composition avoids centralization of power, cliques and power struggles in an organization. In order to avoid breaking the Code and attract, retain and motivate directors, the Committee cooperates with FIT Remuneration Consultants LLP (‘FIT’) and an independent law firm and compile a reasonable remuneration policy.
CareGroup was formed on the basis of three major Massachusetts hospitals; Beth Israel, Deaconess, and Mount Auburn (McFarlan, F. Warren, and Robert D. Austin, pg.1). After a surprising merger of Mass General and Brigham and Women’s Hospital, all three hospitals in CareGroup suffered great financial losses (McFarlan, F. Warren, and Robert D. Austin, pg.2). Due to the multi-million dollar financial losses, CareGroup felt they needed a change, which is when they added Halamka to their team, naming him their CIO (McFarlan, F. Warren, and Robert D. Austin, pg.3). Being in a financial state of duress, it is undoubtedly crucial for a new CIO to have the technical skills and knowledge needed to manage a health care facility. In reference to this point, Halamka had stated, “…I know all the technologies, I program in 12 languages, and I’ve written books on Unix system administration. I’m a doctor, so I understand the clinical domain and the technical requirements” (McFarlan, F. Warren, and Robert D. Austin, pg.3). Clearly this exemplifies his qualifications as the newly instated CIO.
Interests: The Board of Directors want to ensure that SCE is in good financial health and
Fraschetti, R. L. & Sugarman, M. (2009). Successful Hospital-Physician Integration: Shared governance and decision-making help a California integrated health care network thrive. Pivot Health website. Retrieved February 21, 2011, from http://www.pivothealth.com/userfiles/pdf/090701%20Bob%20Fraschetti%20Michael%20Sugarman%20Successful%20Hosiptal-Physician%20Integration%20Trustee.pdf.
The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s has access to independent advisors as each considers necessary or appropriate. Mallor, Barnes, Bowers, & Langvardt (2010) state that the Board of Directors also, issues shares, Adopts articles of merger or sha...
CEOs and Board Members need to be collaborative in dealing with increasing complexities of healthcare management. Having the correct Boards members could make the difference between a well run managed successful healthcare institution and one that fails. There are many components needed to have to the correct board members. As noted in our book having the correct people on the board is necessary, however the process is more complicated than just selecting those people are felt be “good fits” to be member of a board of directors.
Furthermore, a SWOT analysis was conducted to determine the strengths, weaknesses, opportunities, and threats of West Florida Regional Medical Center (Hill, Jones, & Schilling, 2004, p. 17). Although there were a number of quality control issues at West Florida Regional Medical Center, the hospital did however have several strengths. West Florida Regional Medical Center has a strong support group including the military, government, business, and education (Rakich, Longest, & Darr, 2010, p. 318). Another major supporter involve include John Kausch, HCA’ CEO himself; not only is he fully involved in the whole process, he also possesses good management skills (Rakish et al., 2010, p. 317). Dr. Batalden, another knowledgeable individual who understand the positive
Loblaw Companies Limited manages several subsidiaries and many stores in Canada and The United States, as a result, the Board of Directors play a crucial role in overseeing the effective management of the company. The Board regularly reviews management’s strategic plans and monitor performance of management against approved objectives. The Board also manages Loblaw’s approach to corporate governance, and makes sure the Corporation accurately provides information to shareholders and the public. The Board makes sure the senior management engages in ethical and legal conduct and maintain a culture of integrity. The responsibilities of the Board include: Define shareholders expectations and monitor corporate performance, establish strategic goals, performance objective and operational policies, delegate management authority to the executive chairman, monitor financial disclosure, monitor enterprise risk management, oversee effective external communications, monitor corporate governance, and monitor corporate social responsibility, integrity, and ethics.
The present environments for healthcare organizations contain many forces demanding unprecedented levels of change. These forces include changing demographics, increased customer outlook, increased competition, and strengthen governmental pressure. Meeting these challenges will require healthcare organizations to go through fundamental changes and to continuously inquire about new behavior to produce future value. Healthcare is an information-intensive process. Pressures for management in information technology are increasing as healthcare organizations feature to lower costs, improve quality, and increase access to care. Healthcare organizations have developed better and more complex. Information technology must keep up with the dual effects of organizational complication and continuous progress in medical technology. The literature review will discuss how health care organizations can provide effective care by the intellectual use of information.
Organizations that only have top management as the board members are more susceptible to accounting malpractices. Members of the board should preferably own shares in the company to ensure diligence when it comes to the interests of the company. Apart from the Board of Governors, there should also be an audit committee in place to oversee the financial dealings of the bank. Members of the board and the audit committee should have basic financial knowledge. Some of the members should also be experts in finances so that they can detect any anomaly that may take place in terms of financial reporting. An overhaul of the regulatory framework is required to empower authorities to intervene immediately, and make improvements. New technology is required. Manual antiquated processes should be eliminated because this causes greater human error and poor
In the present case, the company (LP) has six individuals on the board of directors (Andy, Brian, Chris, David, Evan and Faith). All these directors, particularly Andy, felt that it would be prudent to restructure
According to Carol Padgett (2012, 1), “companies are important part of our daily lives…in today’s economy, we are bound together through a myriad of relationships with companies”. The board of directors remain the highest echelon of management in any company. It is the “group of executive and non-executive directors which forms corporate strategy and is responsible for monitoring performance on the behalf of shareholders” (Padgett, 2012:1). Boards are clearly critical to the operation of companies and they are endowed with substantial power in the statute (Companies Act, 2014). The board is responsible for directing and steering the company. The board accomplishes this by business planning and risk management through proper corporate governance.
The role of the board: unlocking the potential. (n.d.). (DRAFT). Retrieved December 8, 2013, from http://www.ey.com/US/en/Services/Strategic-Growth-Markets/Strategic-Growth-Forum-Agenda-EVTD-USDD-97KR7Z?CMPNID=SGF2013_US_Insights_Audit_Committee_Track1_Board_Recap