John Tiscornia, Estes Park Institute’s Governance Expert and Financial Planning Authority, outlines three issues Boards should consider as high priority during this crisis:
- COVID-19 will require Boards to change how they perform their governance as well as require them to oversee the change in health care delivery. There will be a new norm.
- In recovering from the COVID-19 crisis, Boards will have to pay special attention to the financial situation and financial plan. Health care organizations have large investments in fixed property, plant, and equipment. It appears that volumes will not return to the old normal because more virtual health will be delivered. This will leave a financial problem as it relates to covering the fixed costs in health care organizations. There also will be a demand for new investments to deliver health care on a more virtual basis. Boards will have to establish or refine their criteria for making capital expenditure decisions.
- In addition to the issue of recovering from COVID-19, there is also the issue of the Board’s oversight of the repositioning and redesigning the health care organization for growth and sustainability in the future.