What is the role of the CEO at a hospital?
The Horowitz law firm recently called Dr. Paul Hofmann, president of the Hofmann Healthcare Group as an expert witness at trial. Dr. Hofmann has worked in the health care field for over 45 years. He has held positions as: Executive Vice President and Chief Operating Officer of the Alta Bates Corporation, a diversified nonprofit health care system in northern California; Executive Director of Emory University Hospital in Atlanta, Georgia; and Director of Stanford University Hospital and Clinics in Stanford, California.
He framed his answer in terms of public safety and patient interests. Here is his answer.
The CEO is essentially responsible for the overall performance of the organization, both clinically and financially, and he or she is held accountable by the governing body, which has the ultimate responsibility for the performance of the organization. And I often refer to the board as the community's conscience. In other words, the governing body, and in turn the CEO and his or her colleagues, are responsible for assuring that the organization is performing in a way that serves the best interests of patients both from the point of view of quality of care as well as the fiscal health of the organization.
So patient safety and quality of patient care is at the forefront of the responsibility of the governing body as well as the senior executives, including the senior physicians who are members of the hospital staff.
The Joint Commission does not explicitly define the role of a hospital CEO, but its accreditation standards do shape hospital leadership responsibilities. The Joint Commission focuses on governance, patient safety, and healthcare quality, which hospital CEOs must oversee to ensure compliance. In general terms, Hospital CEOs are responsible for:
Regulatory Compliance: Ensuring the hospital meets Joint Commission standards and federal/state healthcare laws.
Strategic Leadership: Setting policies, financial goals, and operational strategies.
Quality & Safety Oversight: Implementing patient safety initiatives and improving healthcare outcomes.
Board & Stakeholder Relations: Working with the hospital board and external agencies to maintain accreditation.
USC’s Price School of Public Policy describes its program to train people to become hospital CEO’s. It describes the job this way:
Hospital CEOs work closely with other C-suite executives, which typically include chief financial officers (CFOs), chief operating officers (COOs), chief medical officers (CMOs) and chief nursing officers (CNOs). These positions focus on specific elements of facility operation, and their expertise allows hospital CEOs to make informed decisions.
The primary goal of a hospital CEO is to create an environment that operates efficiently, offers high-quality patient care, meets the needs of its staff and benefits its community.
Hospital CEO Job Description
The U.S. Bureau of Labor Statistics (BLS) outlines a CEO’s core responsibilities, which include the following.
Setting the goals, policies and procedures of the organization
Overseeing financial and budgetary operations
Negotiating and approving contracts and other agreements
Hiring department heads and managers
Identifying processes that can be more efficient and cost-effective
In addition, the hospital CEO job description includes ensuring that care policies are compliant with all laws and regulations. CEOs are also responsible for fostering, leading and growing a work environment that promotes worker and patient safety.
The Horowitz legal group represents doctors in hospital management, peer review, licensing, credentialing and many other matters. You can reach our lawyers at (925) 283-1863.