Corporate Governance and Risk Management in Healthcare Institutions: Application in the National Health Service

Yazji, Alexander (2012) Corporate Governance and Risk Management in Healthcare Institutions: Application in the National Health Service. [Dissertation (University of Nottingham only)] (Unpublished)

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The quality of health care is a global issue of concern in recent years, as number of patients has significantly, higher costs, and technological development all led to an increase in malpractice and a reduction in quality of care particularly in the United Kingdom‟s National Health Service (NHS). In the early 1990s the NHS depended on an indemnity system under which NHS trusts were obliged to pay insurance premiums to the NHS Litigation Authority (NHSLA), which managed and dealt with clinical negligence claims on behalf on NHS trusts. However, this system developed into a system of risk management standards in 2002 as part of the governance reforms implemented by the NHS. The new governance reforms and risk management system were introduced for the purpose of improving the quality of care, better financial status, and reducing the numbers of clinical negligence claims.

This study is interested in the connection between governance and risk management particularly in NHS trusts. Particular interest will be on the Foundation Trust Status (FT) as part of the governance structure of trusts. Under FTs the board of directors became responsible for making financial and strategic decision when compared with normal NHS Trusts. This research will investigate the impact of FTs on NHS trusts risk management levels, financial position, and the number of clinical negligence claims. In order to conduct such investigation and empirical analysis will be conducted on a set of panel database over the period of (2002-2009). The empirical analysis consisted of three stages, the first analysis examined the correlation between FTs and risk management levels and established that the governance reforms are positively related to risk management levels. The second analysis studied the connection between financial health represented by total net assets of trusts and FTs found that better financial health is achieved by implementing FT status. The final analysis evaluated the impact of FT on the number of new clinical negligence claims and discovered that they are negatively related; hence FTs are associated with lower numbers of new claims.

In summary, this research supports the notion that corporate governance and risks management are significantly related and improved governance structure of NHS trusts helped improved many aspects of quality of care in the United Kingdom. Furthermore, this study helped understand the overall impact of FT status on NHS trusts and provides the basis for future studies related to this subject.

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Apr 2013 14:26
Last Modified: 14 Sep 2016 07:25

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