Korean Journal of Policy Studies

Graduate School of Public Administration, Seoul National University

Korean J. Policy Stud. 2016; 31(2):23-40

pISSN: 1225-5017, eISSN: 2765-2807

Article

Does Governance Affect Organizational Performance? Governance Structure and Hospital Performance in Tennessee

Chul-Young Roh¹, M. Jae Moon²

¹Chul-Young Roh is an associate professor in the Department of Health Sciences at Lehman College/CUNY. E-mail: chulyung.roh@lehman.cuny.edu.

²M. Jae Moon is Underwood Distinguished Professor in the Department of Public Administration at Yonsei University, Seoul, Korea. E-mail: mjaemoon@gmail.com.

Â© Copyright 2016 Graduate School of Public Administration, Seoul National University. This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Received: May 30, 2016; Revised: Jun 15, 2016; Revised: Jul 25, 2016; Accepted: Aug 05, 2016

Published Online: Aug 31, 2016

Abstract

It is critical for a hospital to perform efficiently, to provide quality health care, and to maintain a high reputation in the community that the hospital serves. Since hospital governing boards are charged with ensuring superior performance on the part of the hospital, it is important to understand the features of governing boards that contribute positively to hospital performance. This study investigates the relationship between hospital governance and hospital performance in Tennessee. It measures the performance of 125 community hospitals from 2008 to 2012 using data envelopment analysis (DEA). This study finds that hospitals that adopt a corporate governance model perform better than hospitals that embrace a philanthropic one.

Keywords: measurement of efficiency; data envelopment analysis (DEA); hospital governance