Hospital Governance, Performance Objectives, and Organizational Form

35 Pages Posted: 25 Jul 2000

See all articles by Leslie Eldenburg

Leslie Eldenburg

University of Arizona

Benjamin E. Hermalin

University of California, Berkeley

Michael S. Weisbach

Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI)

Marta Wosinska

Harvard Business School

Multiple version iconThere are 3 versions of this paper

Date Written: June 2000

Abstract

This paper studies the governance of a sample of California hospitals. We document a number of empirical relations about hospital governance: The composition of the board of directors varies systematically across ownership types; poor performance and high administrative costs increase board turnover, with this sensitivity varying by organizational type; and poor performance, high administrative costs, and high uncompensated care lead to higher CEO turnover, with these effects again varying across different organizational types. Overall, these results are consistent with the view that boards of directors of hospitals of different organizational forms are substantially different, and that these boards make decisions to maximize different objective functions.

Keywords: board structure, corporate governance

JEL Classification: G34, I12

Suggested Citation

Eldenburg, Leslie G. and Hermalin, Benjamin E. and Weisbach, Michael S. and Wosinska, Marta, Hospital Governance, Performance Objectives, and Organizational Form (June 2000). Available at SSRN: https://ssrn.com/abstract=236106 or http://dx.doi.org/10.2139/ssrn.236106

Leslie G. Eldenburg

University of Arizona ( email )

McClelland Hall Room 301H
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Benjamin E. Hermalin

University of California, Berkeley ( email )

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Michael S. Weisbach (Contact Author)

Ohio State University (OSU) - Department of Finance ( email )

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National Bureau of Economic Research (NBER)

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European Corporate Governance Institute (ECGI) ( email )

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Belgium

Marta Wosinska

Harvard Business School ( email )

Soldiers Field
Boston, MA 02163
United States
617-495-6548 (Phone)
617-496-5853 (Fax)

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