HCA 545: Role Of Governance In Health Care Organizations
Role of Governance in Health Care Organizations
Grand Canyon University
HCA 545
October 23, 2013
“The essence of good corporate governance is ensuring trustworthy relations between the corporation and its stakeholders. Therefore, good governance involves a lot more than compliance. Good corporate governance is a culture and a climate of Consistency, Responsibility, Accountability, Fairness, Transparency, and Effectiveness that is Deployed throughout the organization (the CRAFTED principles of governance.)” (Arguden, 2010). Managing a health care organization requires everyone involved to work as a team. It is highly important for everyone that is part of the team, whether they are on the board, some …show more content…
The failure of the Enron Corporation in the late 2001, apart from signaling the largest corporate bankruptcy in the USA, has raised several questions about the effectiveness of the contemporary accounting, auditing, and corporate governance practices. The committee followed all the rules that were put in place by the board. “However, it is said that the audit committee deserves much of the blame for Enron’s collapse and the corporate governance movement deserves much of the blame for the Enron audit committee. Governance experts say the audit committee’s lack of independence made it less inclined to question management.” (Lavelle, 2002). Businesses collapsing, like Enron, can be prevented. “Those executives can be criminally penalized for misleading auditors. For a successful corporate governance, board members should be properly inducted, trained and developed. The pros and cons of different types of corporate governance need to be explored and best practice disseminated. There needs to be more company sponsored practical researcher on governance, rather than the black box it often is at present.” (Vinten, …show more content…
Governance structures can be formal or informal, but it must include agreements with those who will me affected by the structures. Governance structures can be created through State laws, joint agreements through agencies, jurisdictions or regions. Obstacles to avoid in establishing a governance structure are turf issues among users, agencies, or governmental bodies, politics, inadequate funding, and untrained personnel and support staff. As a governance structure is being established, the following guidelines should be followed.
“Ensure involvement and petrifaction from all agencies and jurisdictions involved. Turf battles can significantly be reduced or eliminated if all relevant agencies and jurisdictions, regardless of size, are brought to the table and allowed fair involvement and participation. If a statewide or regional system is being developed, the governance structure should be representative of all the disciplines and levels of government.
Set realistic goals and objectives with a reasonable timeframe for the plan to work
Identify immediate short-term successes that can be achieved early on in the planning process. Such achievement will motivate participants to strive for long-term
Grand Canyon University
HCA 545
October 23, 2013
“The essence of good corporate governance is ensuring trustworthy relations between the corporation and its stakeholders. Therefore, good governance involves a lot more than compliance. Good corporate governance is a culture and a climate of Consistency, Responsibility, Accountability, Fairness, Transparency, and Effectiveness that is Deployed throughout the organization (the CRAFTED principles of governance.)” (Arguden, 2010). Managing a health care organization requires everyone involved to work as a team. It is highly important for everyone that is part of the team, whether they are on the board, some …show more content…
The failure of the Enron Corporation in the late 2001, apart from signaling the largest corporate bankruptcy in the USA, has raised several questions about the effectiveness of the contemporary accounting, auditing, and corporate governance practices. The committee followed all the rules that were put in place by the board. “However, it is said that the audit committee deserves much of the blame for Enron’s collapse and the corporate governance movement deserves much of the blame for the Enron audit committee. Governance experts say the audit committee’s lack of independence made it less inclined to question management.” (Lavelle, 2002). Businesses collapsing, like Enron, can be prevented. “Those executives can be criminally penalized for misleading auditors. For a successful corporate governance, board members should be properly inducted, trained and developed. The pros and cons of different types of corporate governance need to be explored and best practice disseminated. There needs to be more company sponsored practical researcher on governance, rather than the black box it often is at present.” (Vinten, …show more content…
Governance structures can be formal or informal, but it must include agreements with those who will me affected by the structures. Governance structures can be created through State laws, joint agreements through agencies, jurisdictions or regions. Obstacles to avoid in establishing a governance structure are turf issues among users, agencies, or governmental bodies, politics, inadequate funding, and untrained personnel and support staff. As a governance structure is being established, the following guidelines should be followed.
“Ensure involvement and petrifaction from all agencies and jurisdictions involved. Turf battles can significantly be reduced or eliminated if all relevant agencies and jurisdictions, regardless of size, are brought to the table and allowed fair involvement and participation. If a statewide or regional system is being developed, the governance structure should be representative of all the disciplines and levels of government.
Set realistic goals and objectives with a reasonable timeframe for the plan to work
Identify immediate short-term successes that can be achieved early on in the planning process. Such achievement will motivate participants to strive for long-term