System-Parent and Subsidiary Board Charter
A key governance design challenge in healthcare systems having multiple boards with parent-subsidiary relationships is specifying the most effective/efficient subdivision and coordination of responsibilities and roles among them.
The questions that must be addressed are:
- What responsibilities/roles should be assumed and discharged by the system-parent board?
- What responsibilities/roles should be assumed and discharged by system subsidiary boards?
- How should the work of system and subsidiary boards be coordinated? Options for answering these questions can be diagramed as follows: