Hospital Governance Mechanisms and Hospital Governance Effectiveness

Yan, Y. H., and Yang, C. W. 2013. Hospital Governance Mechanisms and Hospital Governance Effectiveness. NTU Management Review, : 57-82. doi:10.6226/NTURM2013.SEP.OG018

Yu-Hua Yan, Research Fellow, Department of Medical Research, Tainan Municipal Hospital
Chen-Wei Yang, Associate Professor, College of Humanities and Management, Fooyin University


The main purpose of this study is to develop and examine the theoretical model of hospital governance. For this purpose, this study integrates the literature of organizational governance and agency theory to empirically test the relationship between hospital governance mechanisms (structure of board of directors, information disclosure, and decision making) and hospital governance effectiveness (financial, customer, internal process, learning and growth, and social responsibility). This study empirically tested hospital governance related indices from 102 hospitals by using secondary data. The results find that (1) information disclosure and decision making of hospital governance mechanisms are positively related to its governance effectiveness, and (2) the relationship between the structures of board of directors and its governance effectiveness is non-significant. The theoretical and managerial implications and suggestions of future study are provided at the end of this study. 


hospital governance governance mechanism management effectiveness

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