The Role of Board of Directors in Healthcare

Senior (College 4th year) ・Healthcare&Medicine ・APA ・5 Sources

Healthcare governing boards have a crucial role to play in the management of a healthcare centres. The outcomes of an active healthcare board show up as an increased financial performance of the hospital. For the board of directors to achieve this goal, they are mandated with several responsibilities. These responsibilities according to Wilson & Claypool (2010, p.29) include: making decisions that have the hospital to perform well financially, adhering to regulations, and creating new guidelines.

One of the central mandates of the board of directors is to ensure that the hospital they oversee continuously maintains enough operating capital not only to continue offering quality care but also remain open. It is therefore crucial for the board to ensure that the hospital has achievable financial goals and that the organization is fully aligned with these goals (Globerman, 2008, p.16). During transitions, problems arise when there are inconsistencies between the board and the management of the hospital during the policy creation processes on which financial objectives are essential (Hayden, 2010, p.7). This is a problem especially in hospitals operating with limited financial resources.

Other challenges affecting healthcare boards during transition involves creation of new guidelines and staffing policies for the hospital. Guidelines keep the hospital in compliance with the law (Gautam, 2005, p.29). In addition to this, the board of directors may recommend the removal or appointment of senior employees within the hospital. As the traditional hospital business model keeps changing, physicians are now considered indispensable partners and not necessarily employees (Duvall, 2006, p.1809). This may make them feel less attached to the hospital they are working in which may affect the quality of care.

There are several ways healthcare boards can overcome these issues. Firstly, having clear financial policies and proper decision-making processes enhances the performance of the boards. Finally, during transitioning the boards must treat healthcare staff as its partners rather than employees. This will give them a sense of attachment to the hospital, which could lead to better care.


Duvall, D. (2006). Conflict of interest or ideological divide: the need for ongoing collaboration between physicians and industry. Current Medical Research And Opinion, 22(9), 1807-1812.

Gautam, K. (2005). Transforming Hospital Board Meetings: Guidelines for Comprehensive Change. Hospital Topics, 83(3), 25-32.

Globerman, J. (2008). Hospital Restructuring. Social Work In Health Care, 28(4), 13-30.

Hayden, E. (2010). Nonprofit Hospitals Face Structural as Well as Financial Challenges: Lessons from Massachusetts. Hospital Topics, 83(3), 2-8.

Wilson, C., & Claypool, D. (2010). Education Needs of Hospital Governing Boards. Hospital Topics, 72(3), 28-31.

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