Harvard University Case 15 District Hospital a Lesson in Governance
Case 15District HospitalA Lesson in Governance
Cynthia Mahood LevinHealthcare Consultant, Palo Alto, CA
Kurt DarrThe George Washington University, Washington, D.C.
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Barclay Memorial Hospital (BMH) has enjoyed a reputation for excellent medical care in an affluentcommunity for over 70 years. In the mid-1940s, its community was mainly agricultural, but urbanization wasbeginning. Hospitals in the region were operating at capacity. Community members and physicians proposeda solution to the problem of overcrowding at local hospitals: form a hospital district supported by thecommunity through a tax. Voters approved the hospital district in 1945 by a 5 to 1 margin. The first decisionwas to select a 15-acre campus. In 1947, voters approved an $8 million bond issue to finance construction andoperation of a 275-bed hospital. The tax district spans seven townships that elect five district communitymembers to a governing board for the district hospital’s four entities, which include the hospital, jointventures that operate an urgent care center and a hospice, and the hospital foundation.
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