Roles of Health Care Executives in Change of Organizational Ownership - Term Paper Example

Roles of Health Care Executives in Change of Organizational Ownership

Statement of the issue

Making changes in any control or ownership of an organization can include several forms which include; acquisitions, closures, mergers, affiliations, and divestitures. Each type of change has its own challenges such as expenses, communication errors, and disagreements in regards to healthcare executives and actions to be taken vary on the type of arrangement. In case of any impacts to the staff of the organization or local economy, it can grant access to quality healthcare services to the health population. There should be a policy position before any change in ownership control and a comprehensive approach by the CEOs, governing board, and senior management team members who should assess benefits and risks before any change in ownership control (American Hospital Association, 2012). They have to include the consequences of the health status of the health population and impacts on stakeholders.

Key Considerations for Potential Change in Ownership

The directors, physicians, and executives experience a challenge of leadership in case of any potential change in ownership or control of a hospital. The most important and most challenging is how the hospital leaders will balance the needs of the community and those of organization adaptation and still provide healthcare services which are efficient (The American College of Healthcare Executives (ACHE), 2017). It is very important for directors and executives to have the following key points for consideration before any change of ownership. They have to include the criteria which should be used in the evaluation of proposals in regard to the control of ownership. If the transaction to be processed will still be able to fulfill the hospital mission after the change of ownership. In addition, a study based on the interests of the health population should be conducted in order to assess the options of change, which are available at the community or organization, the benefits, and risks should be specified together with their impact on health population. Lastly, there should be an understanding of any legal constraints in the organization’s charter or certificate of incorporation which may hinder the proposal (American Hospital Association, 2012).

Principles for Changes in Ownership

There are principles which involve governance, human resource as well as clinical implications that should be used so that to predict and minimize the challenges to be encountered by the hospital and health system leaders. Using these guidelines the executives can have a full understanding of what to expect and how they can manage their personal change when the organization has changed its control. One of the principles is to ensure that the health population has been fully engaged to identify their future needs in health improvement, this can be achieved through questionnaire or data collection and analysis. There should be a plan in the provision of care to those members of the community who are under-served and also a continuation of the other health services. In addition, the goals and values of the organization should be considered before the change, these goals are the achievements that an organization would like to achieve when providing healthcare (ACHE, 2017). Measures like the disadvantages of change in ownership should be adopted in evaluating any change before proposals examination. Lastly, the financial incentives are supposed to be identified which may have an influence on the views of trustees and executives. There should be a disclosure of all interest conflict, employment future offer or any other benefits, which may be related to the transaction (ACHE, 2017).

Roles of CEOs and other senior-level managers’ organizational ownership

The Health Service Organization (HSOs) and Health Services (HSs) use Continuous Quality Improvement (CQI) in the improvement of healthcare quality. Their main focus is to improve the processes in order to meet or go beyond the health population expectations. CQI decrease costs by the reduction of poor quality work in regard to waste, any delays and they improve productivity by using better resources. It is the responsibility of Chief Executive Officers (CEOs) and senior-level managers to ensure that a patient has been served with quality care. The CEO is selected by the board to carry out HSOs operations in order to accomplish the strategic objectives set by the health organization (Longest and Darr, 2014). Senior-level managers are responsible to ensure that the clinical staff delivers the health services within HS0s. There are certain roles which are meant for the CEOs and other senior-level managers in HSOs/HSs during a change in organizational ownership and control. They have to ensure that they have reduced costs since HSOs/HSs responds by working when there is a reduction of cost and the quality is improved. Secondly, the health population is more demanding and they always have a high expectation in good services to be offered. They always decide according to purchase value in terms of the price and quality and it also works with healthcare. Thus through HSOs/HSs, it has led to better and quality health services because of the inducement of CQI. Change in high population has led to higher number of people seeking healthcare. It is the duty of CEOs to ensure that they offer better services in order to have many patients.

Roles of Governing Boards (GBs) and PSOs

The GB’s have the responsibility to select and monitor how the CEO of HSO performs. The GB is the one which establishes the criteria for CEO selection, search methods to be employed and review mechanisms for applicants (Longest and Darr, 2014). The GB is responsible for establishing the performance criteria evaluation to be used in evaluating the CEO. GB fulfills the legal duty by the approval of financial goals within HSO, monitoring of the management in the achievement of those goals and establishment of financial policies and the adherence to those policies. In addition, GB’s are responsible for the coordination of their own activities which includes the appointment of a chairperson who supervises their activities determines the size of GB and establishing their members to various committees. It is also involved along with handpicked CEO with management which is effective in a relationship with the stakeholders to the HSO. The CEOs are most involved with GB and the external issues, which apply to HSO operations and their strategic focus, are more. The CEO delegates the rest of the organization’s responsibilities in respect to the daily operations. The chart below shows the responsibilities of Governing Board (Healthcare Administration, n.d).

(The American College of Healthcare Executives 2017).

Professional Staff Organization (PSO) mainly comprised of managing directors and other medical staff who work with HSO in the provision of health services. They mainly take clinical credential based on educational, experience. PSO’s actively establish and monitor periodically the credentials of all its members. These credentials involve the category of membership HSO and the assessment of practice privileges in the competence of a member. The final approval of recommendations to the PSO in regard to credentials is the work of PSO executive committee. They are the most developed as a unit in the hospital than all other institutional types of HSO’s.

Importance of senior-level managers to have governance competence

Governance of HSs will be effective if there is a total appreciation of the fact that the parts are made up of wholes. The governance involves three set of issues; governance of whole HS, governing the parts of HSOs and managing the issues that arise between the two level of governance (Longest and Darr, 2014). In such a case it will be required the managers to be fully aware of the governance skills because the more an HS organization complex is, the complex the governance. In freestanding HSOs the governance control issues tend to be more straightforward while same issues are complicated in HS. Despite the governing of HSOs/HS involving the three issues set they are supposed to be handled differently because in some cases some are complicated than others. Thus it will require a person with full knowledge and understanding to govern them during a change in organizational ownership.

The chart below shows administration in healthcare organization (Healthcare Administration, n.d)

(Longest and Darr, 2014).

Effective CEO Performance situation change in British Airways

British Airways (BA), a flag carrier in the United Kingdom, is the largest airline based on fleet size, international flights, and destinations. In 2008 British Airways was displaced by its low-cost rival EasyJet, but before then it had been considered largest UK airline since its creation in 1974 (Rothenberg & Randall, 1989). But under the new CEO, Willie Walsh British Airways and Iberia Airlines agreed to form a merger, the International Airlines Group where the two companies’ shareholders, customers, and employees would benefit. This was a big decision for BA considering it was much bigger than Iberia Airlines. It was expected the airlines to save 400m euros in a year (BBC, 2010). But on the contrary British Airways and Iberia were to continue operating as normal. The British Airways CEO Willie Walsh considered the merger as a good thing for the customers since it was going to have a large combined network. The merger allowed the company to be huge and also to compete effectively with other giant Airlines. The merger was a great chance for BA to cut its cost since in the previous years it had tough times since it had got heavy losses (BBC, 2010).

Why the performance was effective

The merger was effective because both companies were international Airline's couriers thus they didn’t need to buy any equipment’s. Considering the fact that British Airways was already the largest airline in UK people were already aware of the company thus improvement of these services and expansion of their flights brought their clients back. Through the merger, both the British Airways and Iberia Airlines were going to get more profits than as an independent company (BBC, 2010). Both companies had workers who were willing to participate and to continue with their work even after the companies had merged.

Health Centers

Healthcare centers which include urgent care centers, clinics, and ambulatory surgery (Quint-Bouzid, 2016). These centers provide with outpatient medical health services and they are where the first contact with a health profession is made. Another health center is the medical laboratory and research which comprises of the Medical laboratory and biomedical research. All the tests on biological specimens are done in the medical laboratory which is categorized under microbiology, histology, or serology. Medical research deals with the development of new treatments. Lastly medical nursing home is an example of a health center which includes treatments centers and geriatric care facilities. They have facilities which provide specialized nature to various medical conditions. Lastly the Pharmacies and drug stores which are found in hospitals or clinic and are stuffed by the pharmacists, or pharmacy aides. These stores retail prescribed or non-prescribed drugs and medicine.

Conclusion

In conclusion, a healthcare facility is supposed to check on the health status of the health population. Healthcare facilities are supposed to provide quality care to the people under HSOs/HSs. The CEOs are supposed to make sure that they respond to certain rules like HSOs/HSs in order for good health services to be delivered to the patients. It is also the duty of the CEOs to ensure that the hospital is run in a good way. In addition, the senior-level managers are supposed to make sure that the workers are supervised and their work is done accordingly. The PSOs are to ensure that their members who are medical staff working within HSO their credentials are well monitored. Before any merger or change of ownership, the executives are supposed to consider all the outcomes. Executives are entitled to ensure that there will be a continuation of the provision of better services even after the merger to the health population.