Developing strategic direction for governing boards.

Abstract

This study compares selected characteristics of community hospital governing boards with those of high technology industries acknowledged for successful transitions in a rapidly changing competitive environment. Sponsored by the Estes Park Institute, the purpose of this investigation was to identify emerging governance issues and to propose a normative model for nonprofit community health care systems. Results suggest that for health care systems to succeed in a rapidly changing competitive environment, strategic alterations in top-level governance structures will be necessary to focus on market-driven policy issues, with accompanying changes toward smaller boards composed of expert directors. Trends and implications for board terms, committee structures, and relationships between the board and chief executive officers are also discussed.