35 Pages Posted: 25 Jul 2000
Date Written: June 2000
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: Suggested Citation
Eldenburg, Leslie and Hermalin, Benjamin E. and Weisbach, Michael S. and Wosinska, Marta, Hospital Governance, Performance Objectives, and Organizational Form (June 2000). Presented at Tuck-JFE Contemporary Corporate Governance Conference. Available at SSRN: https://ssrn.com/abstract=236106 or http://dx.doi.org/10.2139/ssrn.236106