Governance Structures in Healthcare

Module 4 Case Governance
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Module 4 Case Governance
Importance of Governance Structures
Governance structures play an integral role in ensuring the smooth functioning of healthcare organizations. Through policy formulation, oversight, and accountability, governance structures guide the operations and direction of organizations. The policy formulation role of governance structures in healthcare includes creating and safeguarding the values and mission of the organization, deciding long-term objectives, and setting up appropriate systems (Chambers, 2012). In this case, governance structures must agree on goals and the healthcare organization's core values. Furthermore, as informed by Griffith and White (2019), the board of a healthcare organization has the role of monitoring the effectiveness of the mission set with respect to the evolving needs of stakeholders.
Governance structures also play the role of oversight, where it is responsible for everything that takes place in the healthcare organization (Arnwine, 2002). In this role, the board can prioritize the healthcare organization's commitment to quality and formulate policies related to ensuring quality is maintained. As informed by Chambers (2012), governance structures also monitor key performance indicators, manage risks, and set up financial and budgetary controls. In this case, it is deducible that the oversight role ensures that goals are accomplished and corrections are made if there are deviations from the set objectives.
Governance structures in healthcare also ensure there is accountability in the processes and operations of organizations. As noted by Chambers (2012), a healthcare organization ought to be accountable to stakeholders, regulators, and funders. Governance structures exist to ensure that accountabilities to these parties are met through complying with reporting, audit, and inspection requirements (Chambers, 2012). Accountability in healthcare organizations is instrumental in ensuring that trust with key stakeholders such as employees and patients is cultivated and maintained. It is deducible that accountable organizations are characterized by prudent management of resources, which is important in minimizing costs. In essence, government structures are monumental in the smooth running of healthcare organizations, given their significant role.
Governance Structures: Nonprofit Versus For-profit Organizations
A major difference in governance structures between nonprofit and for-profit organizations relates to size. The board size of nonprofit organizations tends to be larger than that of for-profit organizations (Browning, 2012). The boards in nonprofit organizations tend to be structured and are characterized by committees and subcommittees (Browning, 2012). Nonetheless, the large size can be a hindrance to effectiveness. As noted by Browning (2012), boards with more than 15 members, which is characteristic of nonprofits, find it difficult to successfully implement governance or agree on the needs of the organization.
Another difference in governance structures lies in the backgrounds of the board members. While nonprofit boards tend to have members with wide range of backgrounds and perspect...