Healthy Boards: An Introduction to Governance for Health Care Organizations James N. Barnes, Ph.D. Assistant Professor & Director Program Leader for Community Rural Development Delta Rural Development Center (DRDC) LSU Agricultural Center Phone: 318.428.4029 E-Mail: jbarnes@agcenter.lsu.edu DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Message Number One… » Rural health care business is complex and therefore rural health governance is complex Why is rural health business complex from a rural hospital perspective? DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Business Complexity Factors ▪ Payment system is complex ▪ Patient mix ▪ Physician recruitment is costly ▪ Health care regulations change frequently DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Added “Rural” Factors ▪ Small base of people in local area willing to serve on hospital board ▪ Limited knowledge of health care business ▪ Usually volunteer labor/recruitment difficulties ▪ “Closeness” creates conflict resolution problems DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Message Number Two… » Strengthening the “Governance Skills” of board members is one approach that can strengthen the governance and performance of rural hospitals… and can create a culture that supports the development of trust among members DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Programs to Strengthen “Governance Skills” » Basics of organization and behavior for high performance – Healthy Boards » Other modules: Parliamentary Procedures Meeting Management Conflict Resolution Team/Leadership Development Strategic Planning - BSC DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Teaching Methodology » Present research based principles for good governance » Case study approach (Yin, 1994) » Interaction with group members and analysis of an existing board situation » Develop strategies to resolve board situation USING principles for good governance DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Some Elements of the Healthy Boards Workshop DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Healthy Boards Model Accountability & Trust Organizational Principles Social Principles Healthy Governance DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives An Assessment Exercise Questionnaire Discuss scores DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Scoring *Combine your scores for the preceding statements as indicated below. Absence of Trust Fear of Conflict Lack of Commitment Avoidance of Accountability Inattention to Results Statement 4: ____ Statement:1 ____ Statement 3: ____ Statement 2: ____ Statement 5: ____ Statement 6: ____ Statement 7:____ Statement 8: ____ Statement 11: ___ Statement 9: ____ Statement 12: ___ Statement 10: ___ Statement 13: ___ Statement 14: ___ Statement 15: ___ Total:______ Total:______ Total: ______ Total: _____ Total:______ A score of 8 or 9 is indication that you serve on a healthy board. A score of less than 8 indicates that your board could benefit from additional governance training. *Based on the book The Five Dysfunctions of Teams by Patrick M. Lencioni DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Top Ten Commandments for a Healthy Board Member Thou shalt honor thy community Thou shalt be honest and fair to those who serve you Thou shalt evaluate fairly those who serve you Thou shalt not forsake thy job for political gain Thou shalt be an informed, active member Thou shalt be prepared for all meetings Thou shalt not micro-manage Thou shalt keep thy mouth shut about closed sessions Thou art not infallible. Thou can learn new tricks Thou art only one board member, not the big cheese Source: Oklahoma State School Board Association, 2004. DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Remember your role… DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Research References for the Healthy Boards Program • Barnes, J., Woods, M., Frye, J., & Ralstin, S. (2004). What is a healthy board? Oklahoma Cooperative Extension Service, F929. • Holland, T. (2002). Board accountability: Lessons from the field. Nonprofit Management and Leadership. 12, (4) 409-428. • Sonnenfeld, J. (2002). What makes great boards great. Harvard Business Review, 9, 1-8. DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Some Additional Board Governance Resources Visit the Journal of Extension (JOE): The Determinants of a Healthy Board http://www.joe.org/joe/2006october/tt1.shtml Building Trust in Local Community Organizations http://www.joe.org/joe/2006august/tt6.shtml DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives Impacts of HB Program • Short term – learning of principles and increase in trust/accountability among board members • Medium term – adoption of other modules to resolve conflict, set a strategy, etc. • Long term – how has governance of operations changed since program (turnover, financial) DELTA • RURAL • DEVELOPMENT • CENTER innovate » educate » improve lives