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Board composition and financial performance in major hospitals

Author

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  • Yingliu Gu
  • James R. Langabeer II
  • Jeffrey R. Helton

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.

Suggested Citation

  • Yingliu Gu & James R. Langabeer II & Jeffrey R. Helton, 2010. "Board composition and financial performance in major hospitals," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 2(1), pages 21-30.
    • Handle: RePEc:ids:ijcgov:v:2:y:2010:i:1:p:21-30
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    Cited by:

    1. De Regge, Melissa & Eeckloo, Kristof, 2020. "Balancing hospital governance: A systematic review of 15 years of empirical research," Social Science & Medicine, Elsevier, vol. 262(C).
    2. Paolo Tartaglia Polcini & Natalia Aversano & Giuseppe Nicol? & Nadia Ardito, 2021. "La diversit? di genere nella direzione strategica delle aziende sanitarie: il rapporto tra governance e performance nelle aziende ospedaliere italiane," MECOSAN, FrancoAngeli Editore, vol. 0(120), pages 21-43.

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