Insider versus outsider executive succession: The relationship to hospital efficiency (original) (raw)
Related papers
Perceptions of Hospital CEOs about the Effects of CEO Turnover
Hospital Topics, 2006
Empirical evidence is scarce on chief executive officer (CEO) turnover in U.S. hospitals, with potentially serious implications for many of these organizations. This study, based on a nationwide survey of CEOs at non-federal general surgical and medical community hospitals conducted in the spring of 2004, reports the perceptions of hospital CEOs regarding the circumstances and impact of CEO turnover on U.S. hospitals. In the opinion ofthe respondents, the impact includes competitors taking advantage of turnover by luring employees and physicians away from the target hospital, significantly increasing the likelihood of other senior executives leaving the hospital, and many of the important strategic activities being delayed or cancelled altogether. Interestingly, the perceptions of CEOs regarding the effects of turnover do not seem to differ regardless of voluntary or involuntary circumstances of turnover. However, there is a notable bias in emphasizing the perceived negative implications of respondents' own departures and allegedly positive effects of their predecessors' departures.
The Effects of CEO-Board Relations on Hospital Performance
Health Care Management Review, 1997
This article assesses the relationship between CEO-board relations and hospital financial performance. A study of 90 acute care California hospitals examined changes in the relations between the CEO and governing board over two time periods in 1985 and 1989. The results show that CEO-board participation is an effective governance mechanism that significantly enhances hospital performance.
Internal vs. External Successions and Their Effect on Firm Performance
Human Relations, 1999
An e xamination of 165 top manage ment successions in U.S. firms during 1989¯91 reveals that external successions are more likely in small firms, in firms with poor economic performance, and in firms which offer the successor several top positions (for example, Chairman and CEO). This last finding illustrates that successor ' s interests and demands (such as organizational power) are also important in determining the final match between manager and firm. We also find that, on ave rage, the postsuccession performance of external successors is superior to that of internal successors. This could indicate that the Board of Directors faces an age ncy problem, leading it to appoint too often from inside.
Performance effects of physicians' involvement in hospital strategic decisions
Journal of Service Research, 2004
In recent years, many hospitals have moved to a professional management model from one of physician dominance. One result has been that physicians in some hospitals are alienated from the strategic processes of the hospital. Extant literature suggests that both physician involvement in strategic processes and investment in capability-building programs are associated with improved performance. The literature also suggests that there is an interaction between physician involvement and capability-building investments that is positively associated with performance. We explore these notions empirically using data from a sample of hospitals to evaluate the extent to which physician involvement in strategic decision making and investments in operational capabilities are associated with hospital performance. Results indicate that such proactive involvement of physicians in strategic decision making significantly affects hospital performance. In addition, investments in capability building related to employee development also affect hospital performance.
Hospital performance: An empirical examination of organizational predictors and moderators
2012
This dissertation is divided into three distinct but interconnected studies on the factors that impact hospital financial performance. The first study reviews and integrates the empirical literature on the influence of organizational factors on hospital financial performance. The second study assesses the impact of hospital physician joint venture activity on hospital performance using a resource dependence and institutional theory framework. The third and final study Finally, I am grateful for the many good teachers who provided encouragement: Rebecca
2004
Taking an organizational learning and adaptation perspective, we compared "relay" CEO successions with nonrelay inside successions and outside successions. Data on 204 CEO successions between 1993 and 1998 in nondiversified U.S. manufacturing firms showed that the likelihood of relay succession was negatively associated with the number of internal candidates and positively associated with presuccession firm performance. We also found that relay successions led to better postsuccession firm performance, particularly at lower levels of presuccession firm performance and higher levels of postsuccession strategic and industry instability.
Governance, performance objectives and organizational form: evidence from hospitals
Journal of Corporate Finance, 2004
In a sample of California hospitals, we find that the composition of the board of directors varies systematically across ownership types. For all ownership types, except government-owned, we find that poor financial performance is related to board and CEO turnover. However, different ownership types place different weights on levels of charity care and administrative expenses. Our overall findings support the proposition that ownership type reflects heterogeneity across consumers and producers, and that differences in these groups lead to differences in the organization's objectives and governance.
CEO Compensation and Hospital Financial Performance
Medical Care Research and Review, 2009
Growing interest in pay-for-performance and the level of CEO pay raises questions about the link between performance and compensation in the health sector. This study compares the compensation of non-profit hospital Chief Executive Officers (CEOs) in Ontario, Canada to the three longest reported and most used measures of hospital financial performance. Our sample consisted of 132 CEOs from 92 hospitals between 1999 and 2006. Unbalanced panel data were analyzed using fixed effects regression. Results suggest that CEO compensation was largely unrelated to hospital financial performance. Inflation-adjusted salaries appeared to increase over time independent of hospital performance, and hospital size was positively correlated with CEO compensation. The apparent upward trend in salary despite some declines in financial performance challenges the fundamental assumption underlying this paper, that is, financial performance is likely linked to CEO compensation in Ontario. Further research is needed to understand long-term performance related to compensation incentives.
Trends in governance structure and activities among not-for-profit U.S. hospitals: 2009–2015
Health Care Management Review, 2017
Background: One of the most distinctive management competencies is related to the ability to structure the strategic vision, develop long-term plans, and communicate them efficiently to the employees in order to empower them to enact. These managerial competencies in complex organizations are strongly related to the capacity to engage professionals as a predictor of high-performing organizations. Purpose: The aim of this study was to investigate the relationship between top management competencies, information sharing, and organizational performance in public health care system and to look at the management role in assuring information sharing on organizational strategies to achieve professionals_ engagement. Methodology/Approach: This relationship is empirically tested using the longitudinal data of public health care organizations from the Tuscany Region (Italy). The top management competencies and information sharing are evaluated by the heads of the departments. While information sharing refers to the organizational level (e.g., to convey the objectives), managerial competencies refer to the individual level (e.g., to manage conflict). A random effect regression model is estimated using average responses by the health organization. Data come from the multidimensional performance evaluation system (2008 to 2014 years). Results: Findings show that managerial competencies are positively associated to organizational performance. Moreover, managerial competencies are strongly linked to the information sharing process developed into the organizations. In particular, managerial competencies play a significant role on whole performance, and results are mediated by the use of mature information sharing instruments such as benchmarking of performance results. Conclusion: Systematic information sharing process regarding performance results, goals, and organizational structure provided by top management seems an effective strategy to engage professionals. Control variables