Table 2 Comparison of key features of public hospital governance

Governing bodies

State hospitals – no board of directors or supervisory board Municipal hospitals governed by board of directors.

Members are hospital employees, municipal representatives and business people.

Different number of members.

Public hospitals divided into 21 District Health Boards (DHBs), which serve as Boards of Directors for their hospitals.

Some are hospital employees and some are self-employed or employed by other organisations

11 members per DHB

Membership of a governing body

State hospitals – no governing body.

Municipality hospitals – members appointed by town and municipality officials.

7 members elected through public vote every 3 years, 4 are appointed by the Minister of Health (MoH).

At least 2 members must be Maori.

Member's pay

Usually small fixed pay for a meeting. (Data not available).

Approx. US$15,000 annually.

Service delivery and financial targets

Vaguely set by the ministry, town or district.

Set by DHB Funding and Performance Directorate.

Accountability of governing body

Indirect.

Subject to 'public' control

Competence of a hospital director

High competence and high autonomy over both medical and financial results.

Hospital CEO has high status and is a top level executive appointment

Accountability of a director

Moderate financial involvement in potential profits. Threat of redundancy.

CEO is accountable to board for overall financial results and service delivery performance

Controlling body

State hospitals – ministries: low direct involvement, subject to political changes, unfocused. Municipality hospitals – town and district representations: low involvement, subject to political changes, unfocused.

DHB Funding and Performance Directorate and Ministry of Health, subject to political changes, focused.