Trends in governance structure and activities among not-for-profit U.S. hospitals: 2009-2015.

BACKGROUND: In U.S. hospitals, boards of directors (BODs) have numerous governance responsibilities including overseeing hospital activities and guiding strategic decisions. BODs can help hospitals adapt to changes in their markets including those stemming from a shift from fee-for-service to value-based purchasing. The recent increase in market turbulence for hospitals has brought renewed attention to the work of BODs. PURPOSE: The aim of the study was to examine trends in hospital BOD structure and activities and determine whether these changes are commensurate with approaches designed to respond to market pressures. METHODOLOGY/APPROACH: We examined hospital level data from The Governance Institute Survey (2009, 2011, 2013, and 2015) and corresponding years of the American Hospital Association Annual Survey in a pooled, cross-sectional design. We conducted individual multivariate models with adjustments for hospital and market characteristics, comparing the changes in BOD structures, demographics, and activities over time. FINDINGS: The sample included 1,811 hospital-year observations, including 682 unique facilities. We found that BODs in 2015 had less internal management (ß = -2.25, p < .001) and fewer employed and nonemployed physicians (ß = -8.28, p < .001) involved on the BOD. Moreover, compared to 2009, racial and ethnic minorities (2013 ß = 2.88, p < .001) and women (2013 ß = 1.60, p = .045; 2015 ß = 2.06, p = .049) on BODs increased over time. In addition, BODs were significantly less likely to spend time on the following activities in 2015, as compared to 2009: discussing strategy and setting policy (ß = -5.46, p = .002); receiving reports from management, board committees, and subsidiaries (ß = -29.04, p < .001); and educating board members (ß = -4.21, p < .001). Finally, BODs had no changes in the type of committees reported over time. PRACTICE IMPLICATIONS: Our results indicate that hospital BODs deploy various strategies to adapt to current market trends. Hospital decision-makers should be aware of the potential effects of board structure on organization's position in the changing health care market.

Predictors of Hospital Patient Satisfaction as Measured by HCAHPS: A Systematic Review.

EXECUTIVE SUMMARY: Because Medicare reimbursements are now, in part, based on patient satisfaction scores, hospitals are increasingly concerned about improving patient satisfaction. However, little is known about the different characteristics that are associated with higher patient satisfaction. This study was conducted to systematically review the patient satisfaction literature and to identify predictors of patient satisfaction based on measures from the HCAHPS (Hospital Consumer Assessment of Healthcare Providers and Systems) survey. We searched the PubMed and Scopus databases from January 2007 to February 2015 for relevant peer-reviewed studies. A total of 41 studies met our inclusion criteria and were categorized into three groups (levels) based on the types of predictors used in the study: patient (12 articles, 29.9%), hospital (29 articles, 70.1%), or market (4 articles, 9.7%) predictors. We present a narrative review of the included studies in which certain patient- and hospital-level predictors were consistently associated with higher patient satisfaction (e.g., patient perception of well-managed pain and not-for-profit status) or lower patient satisfaction (e.g., racial/ethnic minority, hospital's safety net status, metropolitan area). Moreover, several predictors had mixed relationships with patient satisfaction across studies (e.g., teaching status, number of beds). Finally, we found that only a small number of studies have examined the association between market-level predictors and patient satisfaction.

Does electronic health record use improve hospital financial performance? Evidence from panel data.

PURPOSE: The aim of this study was to examine the impact of electronic health record (EHR) adoption on hospital financial performance. METHODOLOGY/APPROACH: We constructed a longitudinal panel using data from the three secondary sources: (a) the 2007-2010 American Hospital Association (AHA) Annual Survey, (b) the 2007-2010 AHA Annual Survey Information Technology Supplement, and (c) the 2007-2011 Medicare Cost Reports from Centers for Medicare and Medicaid Services. Because potential financial benefits attributable to EHR adoption may take some time to accrue, we ran regressions with lags of 1 and 2 years that included hospital and year fixed effects to examine the relationship between the level of EHR adoption and three hospital financial performance measures. FINDINGS: A change in the level of EHR adoption was not associated with changes in operating margin or return on assets within hospitals. However, total margin was significantly improved, after 2 years, in hospitals that moved from no EHR to having a comprehensive EHR in all areas of their hospital (ß = 0.030, p < .034). On the other hand, hospitals that increased their level of EHR adoption but did not achieve hospital-wide comprehensive adoption did not experience changes in any financial performance measures examined. PRACTICE IMPLICATIONS: The improvements in total margin, as opposed to operating margin, are likely due to hospital incentive payments under the Health Information Technology for Economic and Clinical Health Act that are reflected in nonpatient revenues and therefore show up in total margin calculations. Thus, after 2 years of EHR adoption, hospital financial performance is observed to improve based only on meaningful use incentive payments. More research will be needed to determine whether EHR adoption impacts financial performance on a longer time horizon.

Management involvement on the board of directors and hospital financial performance.

Agency theory is used to investigate the relationship between top management team involvement on not-for-profit hospitals' boards of directors (BODs) and hospital financial performance. Governance data collected in 2011 by The Governance Institute was merged with hospital financial performance data from the 2011 Medicare Cost Reports. Then, an ordinary least squares regression model, using propensity score adjustments, was used to evaluate the relationship between management involvement on the BOD and three financial performance profitability ratios: total margin, operating margin, and return on assets. The sample included 637 not-for-profit hospitals, most of which (74.1%) were not government owned. As hypothesized, we found that having a larger number of managers with voting rights on the BOD was associated with lower total margin (ß = -0.011, p < .065). Similarly, we found that having a greater percentage of voting BOD members who were managers was associated with lower total margin (ß = -0.296, p < .002) and return on assets (ß = -0.337, p < .072). We did not find support for the notion that CEO involvement onthe BOD is associated with poorer hospital financial performance (ß = -0.008, p < .437). Consistent with agency theory, our findings suggest that management involvement on the BOD is associated with poorer hospital financial performance. This finding suggests that management involvement on the BOD may impair the BOD's ability to effectively monitor the actions of management, which may lead managers to make decisions that are more consistent with their own interests than those of the organization.

Benefits and drawbacks of electronic health record systems.

The Health Information Technology for Economic and Clinical Health (HITECH) Act of 2009 that was signed into law as part of the "stimulus package" represents the largest US initiative to date that is designed to encourage widespread use of electronic health records (EHRs). In light of the changes anticipated from this policy initiative, the purpose of this paper is to review and summarize the literature on the benefits and drawbacks of EHR systems. Much of the literature has focused on key EHR functionalities, including clinical decision support systems, computerized order entry systems, and health information exchange. Our paper describes the potential benefits of EHRs that include clinical outcomes (eg, improved quality, reduced medical errors), organizational outcomes (eg, financial and operational benefits), and societal outcomes (eg, improved ability to conduct research, improved population health, reduced costs). Despite these benefits, studies in the literature highlight drawbacks associated with EHRs, which include the high upfront acquisition costs, ongoing maintenance costs, and disruptions to workflows that contribute to temporary losses in productivity that are the result of learning a new system. Moreover, EHRs are associated with potential perceived privacy concerns among patients, which are further addressed legislatively in the HITECH Act. Overall, experts and policymakers believe that significant benefits to patients and society can be realized when EHRs are widely adopted and used in a "meaningful" way.