A Private hospital with 250 beds, general hospital has been in the business for the last 10 years. The hospital management changed in the last 2 years and the owners have appointed a new CEO for the hospital. The CEO also has the role of CFO and managing the finance function along with the operational responsibilities. However, the hospital is not performing up to the expectations and not making profits. The occupancy rates of the hospital are at 45%. Governing board is chaired by the CEO and owners have membership on the board with no other members on the Governance or board of directors.


1. What do you think the management has done in appointing the CEO and what do you think is the hospital’s mistake.

2. What went wrong with the functioning of the Governance? What should the owners have done in appointing the board of directors (governance) of the organization.