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Do non-profit nursing homes separate governance roles?: The impact of size and ownership characteristics

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  • Dewaelheyns, Nico
  • Eeckloo, Kristof
  • Van Herck, Gustaaf
  • Van Hulle, Cynthia
  • Vleugels, Arthur

Abstract

Separation between operational responsibilities and those of oversight is an important point of discussion in governance. Novel to the literature, this paper not only offers direct evidence on the degree of separation, but also shows its relationship with size (ceteris paribus efficiency prescribes that large organizations implement more separation) and ownership characteristics of non-profit institutions. Using a sample of Belgian (Flemish) nursing homes, we find that in private nursing homes this separation increases with size while this is not the case in public homes. We document that this lack in flexibility in governance practices explains the micro-monitoring in public institutions. We formulate policy implications and suggest solutions to create more flexibility and likely also better governance.

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Bibliographic Info

Article provided by Elsevier in its journal Health Policy.

Volume (Year): 90 (2009)
Issue (Month): 2-3 (May)
Pages: 188-195

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Handle: RePEc:eee:hepoli:v:90:y:2009:i:2-3:p:188-195

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Web page: http://www.elsevier.com/locate/healthpol

Related research

Keywords: Governance Nursing homes Management Public sector Organization;

References

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  1. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-25, June.
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  8. Fama, Eugene F & Jensen, Michael C, 1983. "Agency Problems and Residual Claims," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 327-49, June.
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  13. Eeckloo, Kristof & Van Herck, Gustaaf & Van Hulle, Cynthia & Vleugels, Arthur, 2004. "From Corporate Governance To Hospital Governance.: Authority, transparency and accountability of Belgian non-profit hospitals' board and management," Health Policy, Elsevier, vol. 68(1), pages 1-15, April.
  14. Chris Cornforth, 2001. "What Makes Boards Effective? An examination of the relationships between board inputs, structures, processes and effectiveness in non-profit organisations," Corporate Governance: An International Review, Wiley Blackwell, vol. 9(3), pages 217-227, 07.
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  16. Katherine O'Regan & Sharon Oster, 2002. "Does government funding alter nonprofit governance? Evidence from New York City nonprofit contractors," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(3), pages 359-379.
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