Question

Discussion:: Types of Governance

The two pillars supporting health care governance are typically categorized into either clinical governance or corporate governance. Define and discuss the differences between these two sectors of governance. Include in your discussion the limitations and advantages of each.

Answer 1

Patients are sometimes harmed in the course of receiving hospital care. Existing research has highlighted a positive association between board engagement in healthcare quality activities and healthcare outcomes. However, most research has been undertaken through surveys examining board engagement in a limited number of governance processes.

Governance in the health sector refers to a wide range of steering and rule-making related functions carried out by governments/decisions makers as they seek to achieve national health policy objectives that are conducive to universal health coverage.

As corporate governance activities focus on regulatory and compliance risks, clinical governance activities focus on patient safety and EMR risks and use technology to unite the information.

Clinical governance

Clinical governance is the system through which NHS organisations are accountable for continuously improving the quality of their services and safeguarding high standards of care by creating an environment in which clinical excellence will flourish (Department of Health).

Corporate governance

Corporate governance is a multifaceted set of processes, policies, regulations, laws, organizational structures, people, and customs. These should all work in concert to assure the quality, accountability and effective management of an organization as a whole.

Clinical governance includes patient safety, risk management and quality improvement.  

It refers to the set of relationships and responsibilities established by a healthcare service between its executive, workforce (clinical and non-clinical) and stakeholders (including patients/clients). It provides a system through which clinicians and managers are jointly accountable for patient safety and quality care.

The purpose of clinical governance is the promotion of safety and quality, which digital health, in addition to other capabilities in your practice.

7 pillars of clinical governance are:-

1.Clinical Effectiveness and Research.

2. Audit.

3. Risk Management.

4.Education and Training.

5.Patient and Public Involvement.

6. Information and IT.

7.Staff Management

Corporate governance is a multifaceted set of processes, policies, regulations, laws, organizational structures, people, and customs. These should all work in concert to assure the quality, accountability and effective management of an organization as a whole. The highest level of corporate governance in a healthcare organization (often a Board of Directors or Trustees) should ensure that:

*results are delivered, and

*resources are prudently managed.

Advantages of corporative governance are:-

1.Good corporate governance ensures corporate success and economic growth.

2.Strong corporate governance maintains investors’ confidence, as a result of which, company can raise capital efficiently and effectively.

3.It lowers the capital cost.

4.There is a positive impact on the share price.

5.It provides proper inducement to the owners as well as managers to achieve objectives that are in interests of the shareholders and the organization.

6.Good corporate governance also minimizes wastages, corruption, risks and mismanagement.

7.It helps in brand formation and development.

8.It ensures organization in managed in a manner that fits the best interests of all.

Disadvanteges of corporative governance :-

1.Separation of ownership and management.

2.Illegal Insiders’ Trading.

3.Misleading Reports

There are many ways of presenting factually, accurate financial statements in a way that misleads investors.

4. Regulation Costs

The misuse of corporate governance has led to the adoption of a broader range of federal and state laws to discourage such abuses from repeating. Compliance with this legislation can be burdensome and costly for companies.