Board members and length of appointment
John Hopkins Hospital has 12 board of trustees serving for six years. Massachusetts General Hospital has 14 board members renewable six-year term. Duke University Hospital has 19 board members each serving renewable term of five years
Major duties of the board
The hospital board of directors performs important functions, such as undertaking and reviewing hospitals' overall mission and strategy. They guide the hospital’s long term plans by making strategic decisions and provide oversight duties and ensure that the hospital runs with clear goals and expectations (Price, 2018). The board set expectations for the CEO in implementing the strategic plan. They assist the CEO with proper inputs about critical decisions, management policies, as well as regulations and procedures. The board also oversees employee credentialing by ensuring that the employees receive adequate training, accreditation, and licensing (Culica & Prezio, 2009). The board does not participate in managing the hospital's activities; however, they receive information about the hospital’s financial status and operations from the CEO.
Saberness-Oxley Act demand of Boards
The Saberness – Oxley Act of 2002 passed by Congress gave the board more powers to monitor activities of organizations executive managers (Green, 2005). The Act entitled the Board to closely monitor the activities of organizations, including tracking financial status and expenditure. The Act increased the oversight role of the board to include more considerable influence on the financial management of the organizations.
D/O (Directors/Officers) insurance and why is it needed
Directors and Officers of insurance are specialized people who protect personal property and assets of directors and company officers if they are sued by investors, competitors, customers, employees and other parties for alleged or factual wrongful actions managing the company. D/O’s are needed because they provide insurance which protects company and officers against lawsuits
Price, N (2018) The Roles and Responsibilities of a Board of Directors for a Hospital. Retrieved from https://www.boardeffect.com/blog/roles-responsibilities-board-directors-hospital/
Culica, D., & Prezio, E. (2009). Hospital board infrastructure and functions: the role of governance in financial performance. International journal of environmental research and public health, 6(3), 862-873.
Green, S. (2005). Sarbanes-Oxley and the board of directors: Techniques and best practices for corporate governance. Hoboken, N.J: J. Wil
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