The American College of Healthcare Trustees was founded six years ago to support good governance and leadership in healthcare. We recently sent a communication to 5,000 on our mailing list about The Healthy Holly scandal in which a medical system spent $500,000 for a hundred thousand copies of a self-published book series by the Mayor who was also a Member of the institution's own Board of Directors. The books we're supposed to be distributed to the Baltimore schools and at least 50,000 copies are unaccounted for. By approving this expense, the Board of Directors seems to have failed in one if not all three of its fiduciary duties. This appears to violate the Board's duty of loyalty which is the duty to avoid conflict of interest or the appearance thereof. Nutritional education is important but there are more expert and free resources such as these two: Choose My Plate
These free resources could be a great boon to teachers and librarians in their efforts to educate students and even parents about healthy eating. That $500,000 could have been used to increase the nurse to patient ratio or to achieve some other quality or patient safety goal or to hand out fire alarms of bicycle helmets to the community or to meet some other need. identified by a community needs assessment.
This article published by the Brookings Institute shortly after the corporate scandals and bankruptcies of the early 20th Century discusses the government's response, the Sarbanes-Oxley legislation. The authors emphasize the importance of ethics training, in addition to compliance. The auditor must be independent and paid adequately and must not be influenced by lucrative consulting contracts. The auditor must evaluate the adequacy of internal controls. Criminal law treats corporations as persons and they can be charged in criminal cases.We encourage all those who serve on Boards of Corporations that do patient care or have government contracts or just want to learn more about governance to read the classic Caremark Decision
You are invited to our June 24, 2019 Baltimore event. All serious people are welcome but Registrations are required.Sign-in is at 11:30 am and lunch is in the dining room at 12 noon. The stockholders and Board of Directors Meeting is from 1 pm-2:30 pm. All are invited but only stockholders and Board Members can vote. There will be a quality and safety workshop from 2:30 pm-5 pm. Attendees will get an ACHT Badge for display on LinkedIn.
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