Healthcare Governance

Group governance in the healthcare industry

Governance comprises of a set of rules and structures established by an organization to help it achieve its vision by guiding it through its businesses. Group governance is characterized by certain responsibilities, which include; decision making, strategic planning, and oversight (Ransom et al., 2005).

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Common characteristics of group governance

Decision Making

There is a need to make decisions within the healthcare system; this may sometimes be clouded by some uncertainties. However, decision making forms the basic part of any medical group. However, medical groups have faced some challenges in decision making, which include the processing of the information based on the made decisions and the process of implementing the decisions.

The medical groups must decide on the processes to follow to reach on working and acceptable decisions. Each physician within the group must be responsible for the type of decision made. The group has to lay down strategies that will accommodate every member, including those that are always of contrary opinion (Latham Consulting Group, 2010).

Management Oversight

Group governance operates in a responsible manner that ensures that all members’ interests are considered and protected. Several key indicators are monitored through group governance to ensure that none of the policies and regulations is abused. It ensures that the health system does not over-rely on individual physicians for important data; the group takes the responsibility to explain every indicator and data presented (Latham Consulting Group, 2010).

Strategic Planning

The group governance is also characterized by future planning processes. The medical group must always have common goals that are beneficial for the future operation of the healthcare system.

It is the responsibility of the group governance to develop these objectives by harmonizing the views of the physicians and the management staff. The group identifies the driving force behind the organization, identifies the opportunities available, the obstacles, and the strengths and weaknesses of the individual group members (Latham Consulting Group, 2010).

Describe how the structure and duties of boards of directors in for-profit hospitals have changed over the last 50 years.

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The structure and duties of the board of directors in for-hospitals have experienced changes due to cost-containment practices, the growth of new technologies, and the involvement of consumers and the physicians. The Board in for-profit hospitals involves themselves in the compensation of outside directors, recruiting more inside directors and restricting on the number of committees that serves on the board (Delbecq and Gill, 1988; Kovner, 1985).

For-profit hospitals have strategic decision-making practices, and their trustees have changed from their normal work to businessmen when undertaking their duties within hospitals. The board has been considered to govern more effectively because they are organized in the line of business corporations (Kovner, 1985). The CEOs have since been given more powers to run the hospital boards like business organizations. Structurally, the board in for-profit hospitals comprises of several insiders on the board.


Delbecq, A. And Gill, S. (1988).Developing Strategic Direction for Governing Boards. Hospital and Health Services Administration 33(1), 25-35

Kovner, A. (1985). Improving the Effectiveness of Hospital Governing Boards. Frontiers of Health Services Management 2(1), 4-33

Lathan Consulting Group. (2010). Practical Governance for Medical Groups. Web.

Ransom, S., Joshi, M. and Nash, D. (2005). The healthcare quality book: Vision, strategy, and tools. Chicago, IL: Health Administration Press.

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