1. 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

2. 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. 2 - 2

3. 2 - 3 Introduction to US Health Care Chapter 2 Boards and Governance

4. GOVERNING BOARDS 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 studentsboard of regents board of trustees - a governing board elected or appointed to direct the policies of an educational institutionboard of trustees regent, trustee - members of a governing boardregenttrustee 2 - 4

5. 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? 2 - 5

6. 2 - 6 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

7. 2 - 7 Mission Statement Purpose Characteristics and values of organization Identify target market Organizational philosophy and values Serves all stakeholders!

8. 2 - 8 Ensuring Management Performance BoardCEO 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

9. 2 - 9 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

10. 2 - 10 Ensuring Financial Health Financia l Health Approve budget Financial objective s Protect Assets Financial controls Monitor outcomes vs. budget Budget aligned with plans?

11. 2 - 11 Board Structure Board Composition Board Infrastructure Board of Directors Key Components:

12. 2 - 12 Standing Committees Executive Finance Planning or strategy Quality Credentialing Nominating Audit Compensation Quality / Performance / Process Improvement

13. 2 - 13 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)

14. 2 - 14 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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