Governance Issues Spill Over into Not-for-Profit Health Care
WARREN, NJ, December 19, 2005 - "Governance problems at privately held companies are spilling over to the not-for-profit health care world," said Beth
Strapp, vice president, Chubb & Son, and health care industry product manager, Chubb Specialty Insurance. "Increasingly,
regulators, the courts and consumers are scrutinizing not-for-profit health care organizations. As a result, not-for-profit
health care executives and trustees are seeking better ways to manage governance issues to avoid costly liability lawsuits
or regulatory fines."
Chubb has published Readings in Health Care Governance to help not-for-profit health care executives evaluate and manage their corporate governance risks. The 36-page risk management
handbook includes articles by Chubb Health Care and medical experts on structuring not-for-profit health care boards of trustees;
responsibilities and liabilities; applying the principles of the Sarbanes-Oxley Act to not-for-profit health care organizations;
and protecting the tax-exempt status for the not-for-profit health care sector. The handbook also includes a self-assessment
governance check list for not-for-profit health care organizations.
"Health care organizations are focused on protecting and healing patients, and in today's economic climate, many are struggling
to provide more services with less revenues," said Strapp. "In addition, there is a growing concern that not-for-profit health
care organizations may lose their tax-exempt status, thus creating additional financial and regulatory burdens on these organizations.
That's why it is even more important for a not-for-profit health care organization to keep a close eye on governance issues
and the emerging exposures."
For more information about Readings in Health Care Governance, visit www.chubb.com/businesses/csi/chubb4008.html or contact a local Chubb branch office. Information on directors and officers liability insurance for health care organizations
is available at www.chubb.com/businesses/csi/chubb1001.html.
The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property
and casualty insurance for personal and commercial customers worldwide through 8,000 independent agents and brokers. Chubb's
global network includes branches and affiliates throughout North America, Europe, Latin America, Asia and Australia.
|
