Knowledge Center

Are Boards Paying Enough Attention to Compliance?

Are Boards Paying Enough Attention to Compliance?

Boards have a duty to see that hospitals and health systems comply with all state and federal laws and regulations, but they generally delegate responsibility for establishing, managing, and monitoring compliance programs to management. They also have a fiduciary responsibility to see that charitable assets are used appropriately.

The size and number of penalties imposed on healthcare organizations over the past few years suggest that they are not paying enough attention to the risks their organizations are embarking on as they venture into accountable care and population health management; employ more physicians and acquire medical practices; merge with or acquire other organizations; engage in transactions that directly benefit trustees; or race to the top of the market in executive compensation. The penalties imposed on healthcare organizations have totaled $2 billion a year for the past five years...

For full article, click here

David A Bjork

David Bjork, PhD, joined Integrated Healthcare Strategies, a division of Gallagher Benefit Services, Inc., as a partner in 1994 to start a division focused on executive compensation and incentive plans. Over the next decade, as practice leader, he helped develop the largest and best respected executive compensation consulting practice serving the health care industry.  He developed the standards the firm now uses in evaluating the reasonableness of executive compensation; advising boards on CEO performance ...

Read Full Bio