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What Not to Do - Case Study Example

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The case presented is a classic, points out the problems in the hierarchy of a medical facility as well as in accountability and oversight (Jiang, Friedman & Begun, 2006). The bankruptcy case of Allegheny Health Education and Research Foundation (AHERF), over $1.3 billion was…
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What Not to Do
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Download file to see previous pages Those who asked such burning questions were either pressured to conform to the ‘norms’ or faced limitation of their terms.
The other major flaw that contributed to the demise of AHERF was the alliance between the chief executive officer and the chairperson of the board. The board meetings became only staged performances, as if the participants were following a script. The participants were often given huge reports and never enough time to review them. To summarize both the problems, many frauds and financial weaknesses were covered up, investors were kept in the dark about financial standing of AHERF and there were justifications for later acquisitions by AHERF, such as expansion or market presence (Burns, Cacciamani & Clement, 2000). Here are some of the proposed solutions for the problems that AHERF faced.
The board structure plays crucial role in the financial and operational wellbeing of any corporate. The articles of incorporation and bylaws serve as guidelines for the board members. The organization of board is not a hard and fast rule, it varies considerably from one board to another (Lockee, 2005). In fact, each hospital must uphold its own ethos and autonomy (Tipping, 1999).The task of the committees is to support the work of the board, (which AHERF did too well). However, support never means bling support for board’s work. The major mistake that AHERF made was when people started ruling board meeting and decisions instead of bylaws defining their roles. The chairperson is the most important member of the board, which delegates tasks and oversees performances, had AHERF done this properly, an alliance between the chair person and the chief executive would not have been possible.
The other mistake regarding AHERF’s board meeting is suppressing opinions, twisting and contorting free speech so that it would not hurt the agenda of the chairperson and the chief executive officer. Effective boards are ...Download file to see next pagesRead More
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