The overall purpose of evaluating a healthcare organizations governance is to ensure that the healthcare organization implements a strategy that supports sustainability. While for-profit organizations will develop sustainability through profitability and strong management that balances market risks and internal control, healthcare organizations is to ensure that the resources of the healthcare organization are not being wasted, but more importantly, that there is a social good being delivered by the healthcare organization for the community (Leatt & Porter, 2002). If the healthcare organization does this well and the community requires more of what the hospital delivers, then the healthcare organization should expand. If not, then the healthcare organization should close. One of the major issues that is a part of governance is expansion and closure. The issue of expansion and closure can be effectively responded to by effective leadership of the healthcare organization (McAlearney, 2006). The desired outcome of this issue would be that he healthcare organization does what is best for the community and responds to the social responsibility of the organization. Leadership and governance is essential in order for there to be effective execution of the decision to expand or to close. Leadership should understand the needs of the community and the competencies of the healthcare organization. If the healthcare organization is able to respond or develop a response, then expansion would be the appropriate response. If the needs are beyond the scope of what the healthcare organization is capable of, then the healthcare organization should close.
There are some leadership competencies which are required to make a decision on expansion or closure. The leadership of the healthcare organization should design a conclusive plan for how to respond to any misalignment between the needs of the community and the capabilities of the organization (Jasper & Jumaa, 2008). Leadership must play a pivotal role in responding by designing a vision and implementing the vision. If leadership does not have the requisite aptitude in order to respond to this issue, it is possible that leadership development can supplement implementation. Leadership should be developed to understand how to design and implement an organizational change. The decision to either expand or close will be a significant change in either direction.
The future of the organization will depend on the creation of a plan where there is re-alignment between the community and what the hospital can do. If the hospital must close, then it is the role of governance to develop a contingency plan for patients and people in the community for what happens in the future (Al-Assaf & Schmele, 1993). If there is an expansion of the healthcare organization, then leadership must prepare staff and work with stakeholders to inform them of the future plans of the organization. By doing this, healthcare organization governance will effectively respond to the needs of the people in the community and the healthcare organization itself. Leadership is essential in this case if there is to be sustainability of the organization.
References
Al-Assaf, A. F., & Schmele, J. (Eds.). (1993). The Textbook of Total Quality in Healthcare. CRC Press.
Jasper, M., & Jumaa, M. (Eds.). (2008). Effective Healthcare Leadership. John Wiley & Sons.
Leatt, P., & Porter, J. (2002). Where are the healthcare leaders" the need for investment in leadership development. Healthcare Papers, 4(1), 14-31.
McAlearney, A. S. (2006). Leadership development in healthcare: a qualitative study. Journal of Organizational Behavior, 27(7), 967-982.
