Does Governance Affect Organizational Performance? Governance Structure and Hospital Performance in Tennessee

Abstract

It is critical for a hospital to perform efficiently, to provide quality healthcare, and to maintain a high reputation in the community which the hospital serves. Since hospital governing boards are charged with ensuring high performance on the part of the hospital, it is important to understand the features of governing boards that contribute positively to hospital performance. This study investigates the relationship between hospital governance and hospital performance in Tennessee. It measures the performance of 125 community hospitals during the years 2008-2012 using data envelopment analysis (DEA). This study found that hospitals with a corporate governance model had higher performance than hospitals with a philanthropic governance one.