The Effects of CEO-Board Relations on Hospital Performance

The impact of the board’s strategy-setting role on board-management relations and hospital performance

“…According to Molinari et al (1997), effective governance includes the ability of hospital managing teams and governing boards to share power. These results are consistent with those of existing studies on CEOYboard relations.…”

“…Different indices have been used to measure diversity: the Gini index (e.g., Young et al, 1992), the Blau index (Naranjo-Gil et al, 2008), and the Herfindahl index (Alexander & Lee, 2006). In measuring performance, we followed most of the prior studies in this field and focused on financial performance (Molinari et al, 1997;Molinari, Morlock, & Alexander, 1993). Respectively, we calculated the breadth of occupations represented on each board, evaluating each of seven mutually exclusive occupation groups as a percentage of the board, which were squared and then summed.…”

“…First, to our knowledge, this is the first study to examine the impact of the board's strategy-setting role on boardmanagement collaboration quality. Finally, existing studies have primarily focused on single financial indicators in measuring hospital performance (e.g., Molinari, Hendryx, & Goodstein, 1997). If board-management collaboration quality had an important impact on hospital performance, this would add an additional dimension.…”

The internal processes and behavioral dynamics of hospital boards

“…On the other hand, additional articles have noted the opposite (Barnhart, Marr, & Rosenstein, 1994;Daily 1996). In the hospital industry, several studies have reported that insider representation has a positive effect on financial performance (Goes & Zhan, 1995;Molinari, Hendryx, & Goodstein, 1997;Molinari, Morlock, Alexander, & Lyles, 1993). Yet, Alexander and Weiner (1998) suggest that causality may run in the other direction, with composition, in part, determined by performance.…”

Incoming and Outgoing Hospital CEOs: What Kind of Help Do They Want?

“…Frequent change in leadership not only is expensive (Mendels 2002) but also can affect employee morale and cause organizational instability (Hospital CEO turnover 1997;Molinari, Hendryx, and Goodstein 1997;Neff 2001). …”