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:

diagram

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