Health Sector Governance Better Governance for Better Health Public Asset Management in Hospitals Ownership and Corporatization Mostafa Hunter

Responsibilities of the State States’ Responsibilities Safeguarding Public Health Safeguarding Public Assets

What is an Asset? “a useful or valuable thing or person”. An “asset” is a resource with economic value that an individual, corporation or country owns or controls with the expectation that it will provide future benefit. Our message: assets are not necessarily “physical” in nature, HR and information can also be considered assets according to the first definition “valuable thing or person”

Four types of capital Financial Organizational Human Information

What are physical assets? For most businesses, physical assets usually refer to cash, equipment, inventory and properties owned by the business. Physical assets are the opposite of intangible assets, which are non-physical assets such as leases, computer programs or agreements.

Hospital Ownership and Assets Governmental Private NGO Service Ownership Beneficiary Every hospital has an owner, can be governmental private they provide capita for the hospital for providing services for the beneficiary .However, the role of the state includes but not confined to the guardianship of health and health services, is a safeguard of healthcare service delivery regardless of ownership.

Ownership of Public Hospitals The governmental ownership of public hospitals can be through various entities of the state, such as: Municipalities Ministries of Health Ministries of Higher Education Local Governments The ownership could be in different forms such as: Trusts Governmental authorities / departments or State Owned Enterprises (SOEs) Which government do we mean when we say the government?

Corporate Governance Framework Chairman Board of Directors Owners/ Shareholders/ Stakeholders CEO Company Management

Pure Commercial Purpose In pure commercial enterprises, the owner agrees with the board on an ROI defined in financial terms They agree on rate of return and dividend distribution policy, (amount of dividend, who receives it etc.), and capital structure However, given the nature of hospitals, the organizations has to abide by high ethical standards and inclusive policies

Faculty Members (Physicians and Academics) Non Commercial Public Hospitals – University and Educational Hospitals treatment Patients Money Undergraduates education Buildings Faculty Members (Physicians and Academics) Postgraduates Equipment training Physicians Employees research Publications + Impact Optimum Utilization Optimum Outputs Optimum Impact

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