First few Article Sentences
The implementation of the Affordable Care Act has made the regulatory environment that health care boards of directors face progressively more complex and demanding. In recent years, many boards in the health care industry have been working to bolster the effectiveness of their organization's governance model. To run a health care organization efficiently, each board member must have a clearly defined understanding of the roles and responsibilities of the board from the outset.
The first step in bolstering the effectiveness of the governance model is to clearly define how the board's responsibilities contrast with management's. While the board is accountable for the general oversight of the organization, management is responsible for implementing the strategic initiatives the board has agreed to and running the organization's day-to-day operations. This delineation is important, because it clarifies the boundaries between board and management team roles. The board, being responsible for governance, helps set the organization’s goals, direction, limitations, and accountability frameworks.