Sibley Memorial Hospital
If the case concerning Sibley Memorial hospital was held today, there would be no difference in the outcome. For a decision to be made in the court of law, the court looks at the evidence presented in court against the defendants. Lack of enough evidence against some other trustees apart from Dr. Orem and Dr. Ernt who wanted to get profits from hospital activities made the court to rule in their favor. Negligence of the director of Sibley Memorial hospital probably conspired to the financial issues that were experienced in the hospital (Showalter, 2017). The negligence of the director resulted into the activities of the hospital being managed by only two trustees, Dr. Orem the hospital administrator and Mr. Ernst who was the treasurer. The two trustees dominated both the board and the executive committee. Due to this reason, negligence of the director of Sibley hospital would have made the court to rule the same way as before.
The director was in default by knowingly not supervising the actions of the trustees of the hospital who had the responsibility of making the investment decisions of the hospital. Another reason as to why there would be no difference in the outcome of the court ruling is because the trustees constitute to the minority of the board. All the board members would, therefore, be held guilty of mismanagement of the hospital’s resources because investment decisions were not supposed to be left in the hands of few trustees (Showalter, 2017). The director had also failed to provide full disclosure of the financial issues to the board.
As a CEO of a nonprofit hospital corporation, I would push for implementation of various measures which would ensure that such activities do not occur again in a hospital organization. One of the measures I would take, is to ensure that all the financial decisions and investment decisions are made by all the board members to avoid mismanagement which might arise.
Another measure is to make sure that no trustee is left to undertake all the activities of the hospital including the investment decisions. The director should be held liable for any issue which might arise in an organization because he should be responsible for overseeing the activities of the hospital.
As a CEO of the hospital, I would also make sure that no selected trustees or members of the board agree with financial corporations to earn individual profits. I would make sure that there is the implementation of measures which would make the director of the hospital to perform his duties honestly and in good faith (Showalter, 2017). With honesty, the director would oversee the members of the board and the members of the executive perform their duties with a reasonable amount of diligence and also care.
The members of the board have some duties and responsibilities which they should follow. One of the duties is to ensure that the investment and financial decisions are made collectively by all the members. By doing so, rare cases of mismanagement by some of the members will be minimized, and activities of the hospital run smoothly (Thornhill, Black, & Rosen, 2018). The members of the board and the executive should also make sure that they meet regularly to look into the matters concerning the hospital management and the activities which might affect the hospital. These meetings would also enhance the implementation of various strategies which might prevent investment issues in the hospital.
1. Thornhill, T. A., Black, A. C., & Rosen, M. I. (2018). Financial Capability: Clinicians’ Assessment of Beneficiaries with Dual Diagnoses. Journal of dual diagnosis, pp. 34-43.
2. Showalter, J.S. (2017) the Law of Healthcare Administration Eighth Edition, Health Administrative Press, Chicago, Illinois. ISBN 9781567938760