An empirical comparison between the board's strategic role in nonprofit hospitals and in for-profit industrial firms.
As the health care environment becomes more competitive, nonprofit hospitals are under pressure to adopt for-profit business practices. Based on an extensive field study, this research examines the central issue of organizational governance by comparing the strategic roles of nonprofit hospital boards with for-profit industrial boards. The results show that nonprofit hospital boards are generally more involved in the strategic decision process than their for-profit counterparts. If this governance activity is seen as desirable, hospital boards should exercise caution in emulating for-profit board practices.
Judge
W Q
WQ
College of Business Administration, University of Tennessee, Knoxville 37996-0545.
Zeithaml
C P
CP
D016542:Chief Executive Officers, Hospital / Q000706:statistics & numerical data; D003659:Decision Making, Organizational; D003661:Decision Support Techniques; D005377:Financial Management, Hospital / Q000458:organization & administration / Q000706:statistics & numerical data; D006075:Governing Board / Q000458:organization & administration* / Q000706:statistics & numerical data; D006744:Hospital Bed Capacity, 100 to 299; D006788:Hospitals, Voluntary / Q000458:organization & administration* / Q000706:statistics & numerical data; D006801:Humans; D007221:Industry / Q000458:organization & administration* / Q000706:statistics & numerical data; D007407:Interviews as Topic / Q000379:methods; D009657:North Carolina