Board composition and financial performance in major hospitals
by Yingliu Gu, James R. Langabeer II, Jeffrey R. Helton
International Journal of Corporate Governance (IJCG), Vol. 2, No. 1, 2010

Abstract: Relative to for-profit corporations, there has been very little empirical research examining governing board structure in the predominantly non-profit hospital industry. In this study, we explore the financial impact of board size and diversity for the largest 100 non-profit hospitals in the USA. We use regression and analysis of variance methods to explore relationships between financial performance and board composition. Results suggest that hospital governance models are changing, shifting from a large, largely philanthropic model to a smaller 'corporate' model. Results also show that higher performing hospitals tended to have smaller boards and greater percentage of physician directors.

Online publication date: Thu, 16-Sep-2010

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