Leadership strategy issues in NONPROFIT HOSPITALS concentrate on how Essay

Leadership strategy issues in NONPROFIT HOSPITALS concentrate on how leadership strategy involves a mission, financial manageme - Essay Example As The Attorney General’s Community Benefits Guidelines (n.d.) points out, the non-profit hospitals have the fiduciary obligation to extend their services to concerned communities on the account of individuals’ tax-exempt status. The governing board and senior management are responsible for framing various organizational strategies which would enable the non-profit hospitals to dispose their duties and responsibilities effectively. In contrast, an inefficient strategic management may adversely affect the basic values of such organizations. Therefore, the non-profit hospitals must oversee the development and implementation of the community benefits plan. To be more specific, they must also design the method to be followed, resources to be accumulated, and the mechanism to be deployed for periodical monitoring. Significance of mission in leadership strategy To begin with, since non-profit hospitals are also separate legal entities, they can also deal with revenues and exp enses; and the assets of such hospitals are publicly held. Since these organizations operate on a charitable basis, they may get various sources of public finance including donations and others. Hence, officials dealing with finance department tend to misuse such organizations’ funds which in turn would affect the basic objective of the non-profit hospitals. ... The Attorney General’s Community Benefits Guidelines oblige the non-profit hospitals to serve the health and social needs of the community they serve (Community benefits guidelines for hospitals and HMOs, 2007). These guidelines insist that hospitals must collaborate with community representatives in order to identify their needs and to plan appropriate prevention programs. Fletcher Allen health care community benefits strategic plan (2010) suggests that the major mission of a non-profit hospital is to deliver the proposed community benefits plans effectively to the communities it serves. So as to implement this mission efficiently, usually hospital management designates a community benefits team that comprises of a number of hospital leaders and different operational group representatives. This process requires efficient strategic leadership skills because an ineffective grouping may largely minimize the result of the community benefits plan. The management must also ensure t he service of social workers and health educators to reach the respective communities easily. While implementing the proposed program, it is necessary for the firm to monitor the efficacy of the program at various phases, because it would help the management to identify the weaker areas. Hence, it is advisable for the hospital management to designate a community benefits manager who is responsible for closely watching the operational efficacy of the program. Importance of financial management in leadership In order to implement the community benefits plan efficiently, the hospital must adequately deal with financial management. It is obvious that these organizations carry out their operations on non-profitable basis, and therefore, they would