UPDATES FROM RESEARCH AND PUBLICATIONS

Rethinking Executive Pay: Responsible Governance in an Era of Healthcare Reform

The federal bailout of big financial institutions has brought unprecedented attention to executive pay. Healthcare is facing a crisis of a different sort. Ever-rising costs are making healthcare unaffordable, and the recession is making it even more unaffordable.

It may be time for hospital and health system boards to rethink executive pay. Given the dependence of hospitals on public funding, boards should consider the impact of their decisions on federal and state legislators, as well as on their constituents. Authors Jim Nelson, David Bjork, & Karen McManus, of Integrated Healthcare Strategies, address seven questions hospital and health system boards are asking about executive pay, and steps boards can take to make sure pay is defensible, fair, and effective in attracting talented leaders.

Achieving a Good-Fit Partnership: The Prince William Health System Example

Prince William Health System in Manassas, Virginia recently merged with Novant Health, a 9-hospital integrated health system headquartered in Winston-Salem, North Carolina. The merger represented the culmination of a concentrated nine-month journey toward a good-fit partnership. At the most fundamental level, PWHS’s motivation for a merger was clear: as an independent—and still strong, but relatively small—community health system, PWHS’s board and executive team recognized that thriving into the future as a stand-alone institution (as distinct from surviving) would be very difficult to achieve.

Mark Grube and Kit Kamholz of Kaufman, Hall & Associates, Inc., describe the decision-making philosophy and steps behind this good-fit partnership, and provide advice for boards facing similar decisions.

Turning Philanthropy into an Enterprise Based on Business Principles and Practices

Volatility in financial markets and in the general economy may make us reluctant to follow—let alone to offer—advice about maintaining philanthropic efforts on behalf of not-for-profit healthcare institutions, but the truth is we really have no choice in this regard. Much as we may be tempted to cut back, hunker down, and wait for better times, we dare not do so. Too much is at stake. Philanthropy has become an even more important source of capital today, and will remain so in the future.

William C. McGinly, Ph.D., CAE, president & CEO, Association for Healthcare Philanthropy, addresses the question: how can we turn the pursuit of philanthropic support into less of a wish list or guessing game and more of an enterprise based on the application of the same business principles and practices we use to manage and direct all other aspects of healthcare operations?

Announcing New Webinar Series from The Governance Institute

This fall, a new Webinar series brings national healthcare governance experts directly to your desktop. Join us as The Governance Institute's Advisors present timely and valuable content that will help shape the conversations in your boardroom. Each 60-minute program will inlude a live question and answer session.

NOVEMBER WEBINAR
Thursday, November 19, 2009 2:00-2:00 p.m. Eastern/10:00-11:00 a.m. Pacific
Register today!

The Board's Rold in Assuring Institutional Integrity
Presented by The Governance Institute, advisor Pamela R. Knecht, president of ACCORD LIMITED, and Michael W. Peregrine, Esq., partner, McDermott Will & Emery, LLP.

Institutional integrity is of utmost importance for not-for-profit hospitals and health systems today. With pending healthcare reform, continued scrutiny regarding community benefit and tax-exempt status requirements, and the IRS Form 990 New Instructions, healthcare organizations must protect their missions and reputations with proper actions, policies, and documentation.

Given the board’s fiduciary duties of oversight, care, loyalty, and obedience, the role of the board in assuring institutional integrity is critical. Therefore, boards are well advised to expend "extra effort" and demonstrate transparently that they deserve the public’s trust through their compliance oversight, community benefits, prudent stewardship, and ethical conduct.

• Define and describe the scope of "institutional integrity"
• Review the integrity-related pressures on not-for-profit hospitals and health systems and their boards
• Explore the connection between integrity issues and the board’s fiduciary duties
• Describe the IRS’ new definition of ‘independent’ board members and the implications of this standard for board and committee membership and conflict-of-interest policies and procedures
• Explain the special challenges of physicians serving in governance, given the new ‘independent’ definition
• Review the board's compliance oversight obligations in an intense regulatory environment
• Identify recommended board policies and procedures regarding oversight of executive compensation and other issues related to financial integrity
• Address regulatory pressures on community benefit reporting and the potential new requirements for tax-exempt status
• Describe the importance of transparent reporting of quality, safety, customer service, pricing policies, and governance practices
• Provide specific recommendations for boards to implement with respect to institutional integrity

Click Here to register or call (877) 712-8778 for more information.

CONFERENCE CONTENT AND UPDATES

2010 Leadership Conferences Present New Ideas & Challenges for Boards

Join us for our first Leadership Conference of the year, January 10–13, 2010 at The Ritz-Carlton, Naples, Florida. Dr. Richard Chait will open the conference by exploring changes in mindset and mechanics to enable boards to provide the leadership and stewardship necessary to advance the organization’s mission and vision. Other presenters include:

• Marian C. Jennings, M.B.A. on investing capital in uncertain times
• Brian J. Silverstien, M.D. on tying payment to outcomes
• Lew Morris (OIG) on views from the OIG and the role of the board in promoting quality
• Kent Bottles, M.D. on technology and the evolving provider–patient relationship

The February Leadership Conference (February 21–24, 2010 at The Breakers, Palm Beach, Florida) opens with Emily Friedman on reshaping healthcare—what’s happening to whom and why. Other programs include:

• Lisa Goldstein on the current bond rating perspective on healthcare industry trends
• Todd Sagin, M.D., J.D. on employing physicians
• Julie Barnes, J.D. of the New America Foundation on healthcare reform and how it will change healthcare delivery

Click here to view the complete program and register for these and other 2010 conference.

Register early for a discounted price. Members, remember to redeem your free conference passes.

Leadership Conference The Ritz-Carlton, Naples Naples, Florida January 10–13, 2010	Leadership Conference The Breakers Palm Beach, Florida February 21–24, 2010
Leadership Conference The Grand Del Mar San Diego, California March 7–10, 2010	Medical Leadership Institute Spring Conference   The Ritz-Carlton, Naples Naples. Florida April 11–13, 2010

The Governance Institute thanks Premier Partners Broadlane® and Kaufman, Hall & Associates, Inc. for their continuing support of excellence in healthcare governance.