Governance and Organizational Structure

Question 1

Ad hoc committee

Answer 1

A committee formed to address a specific purpose for a specified time period.

Question 2

Chain of command

Answer 2

The formal channel that defines the line of authority, as well as reporting relationships up and down an organization’s hierarchy.

Question 3

Clinical staff bylaws

Answer 3

A formal document of the governance procedures for physicians and licensed independent practitioners in an organization; approved by the governing body and sometimes called medical staff bylaws.

Question 4

Clinical staff organization

Answer 4

The structure of a healthcare organization’s clinical staff members for carrying out policies, meeting expectations for quality of clinical care, and communicating with the organization’s governing body.

Question 5

Compliance program

Answer 5

A program designed to ensure an organization meets statutory and regulatory requirements; may be based on legislation or a voluntary effort such as accreditation.

Question 6

Consent agenda

Answer 6

A group of agenda items passed without discussion unless a member requests a review; used to focus attention on priority matters.

Question 7

Credentialing

Answer 7

The process of validating a professional’s eligibility for medical staff membership and/or privileges to be granted on the basis of academic preparation, licensing, training, certifications, and performance.

Question 8

Division of labor

Answer 8

Specialization of work that breaks down tasks in a production process so that personnel become highly proficient in components of the process.

Question 9

External auditor

Answer 9

A certified public accounting firm that attests that the accounting practices followed by an organization are sound and that the financial reports fairly represent the state of the business.

Question 10

Governance bylaws

Answer 10

A corporate document that specifies quorum rules of order, duties of standing committees and officers, and other procedures for the conduct of business.

Question 11

Joint venture

Answer 11

A corporation jointly owned by two or more independent corporations; joint ventures always have capital invested by both or all partners, and they usually have joint governance and management teams.

Question 12

Licensed independent practitioner

Answer 12

A caregiver granted legal status to provide specific kinds of healthcare.

Question 13

Management letter

Answer 13

Comments of external auditors to the governing board that accompany their audited financial report.

Question 14

Mission

Answer 14

A statement of purpose-the good or benefit a healthcare organization intends to contribute couched in terms of an identified community, a set of services, and a specific level of cost or finance; many healthcare organizations are moving to population health missions, explicitly accepting responsibility for the broader goal.

Question 15

Reserved powers

Answer 15

Decisions permanently vested in the central corporation of a multicorporate system.

Question 16

Span of control

Answer 16

The number of subordinates reporting to a supervisor.

Question 17

Strategic business unit

Answer 17

A profit center in an organization that focuses on a product line or market segment.

Question 18

Strategic scorecard

Answer 18

Measures of overall enterprise performance grouped in major dimensions-customers, staff and suppliers, operations (quality and cost), and finance; reported to the governing board and appropriate for service lines, the healthcare organization as a whole, or its major components.

Question 19

Trustees

Answer 19

Members of the governing board of not-for-profit organizations who volunteer their time; the title reflects their acceptance of the assets in trust for the community; also may be called directors.

Question 20

Values

Answer 20

An expansion of an organization’s mission that expresses basic rules of acceptable conduct, such as respect for human dignity or acceptance of equality.

Question 21

Vision

Answer 21

An expansion of an organization’s mission that expresses intentions, philosophy, and organizational self-image.