The role of governance has a vital impact on the interests of the important stakeholders in a health care system.
Using your required reading and conducting your own research, use the chart below to compare and contrast in detail five (5) differences between internal and external stakeholders. Be sure to in-text cite and provide a complete formatted reference list.
Support your proposal with peer-reviewed articles, with 2 or 3 references.
required reading
Chambers, N. (2012). Healthcare board governance. Journal of Health Organization and Management, 26(1), 6-14.
Horwitz, J. R. (2005). Making profits and providing care: Comparing nonprofit, for-profit, and government hospitals. Health Affairs, 24(3).
Markwell, S., & Leigh-Hunt, N. (2016). Identifying and managing internal and external stakeholder interests. Retrieved from https://www.healthknowledge.org.uk/public-health-textbook/organisation-management/5b-understanding-ofs/managing-internal-external-stakeholders
White, K. R., & Griffith, J. R. (2010). Chapter 4: Strategic Leadership-Governance. In The well-managed healthcare organization (7th ed.).
Expert Solution Preview
Introduction:
The healthcare system involves various stakeholders, including internal and external stakeholders, whose interests have a significant impact on the system’s governance. This essay aims to compare and contrast five significant differences between internal and external stakeholders in the healthcare system, supported by peer-reviewed articles and references.
Answer:
Internal stakeholders are individuals or groups within the healthcare institution, including employees, management, and shareholders. On the other hand, external stakeholders are individuals or groups outside the healthcare institution, including patients, government entities, and insurance providers. Five significant differences between internal and external stakeholders are:
1) Goals and missions: Internal stakeholders have a specific mission and goals that aim to benefit the organization, while external stakeholders have diverse interests, including economic, social, and cultural needs.
2) Level of involvement: Internal stakeholders tend to be highly involved in daily operations and long-term decision-making processes, while external stakeholders have limited influence in the internal operations.
3) Accountability: Internal stakeholders are more accountable to the organization’s financial and strategic outcomes, while external stakeholders are accountable to the general public, regulatory authorities, and other stakeholders.
4) Communication: Internal stakeholders communicate more frequently and have highly established channels of communication to enhance effective decision-making and problem-solving. Conversely, external stakeholders have limited communication channels and mostly interact through official inquiries.
5) Power and influence: Internal stakeholders tend to have more power and influence in making decisions and exerting control over the organization. External stakeholders have less control, but their influence can position the organization for better public trust and legitimacy.
In conclusion, the healthcare system stakeholders play a critical role in governance, with internal and external stakeholders differing significantly in their involvement, communication, influence, accountability, and goals. The healthcare institution should balance the stakeholders’ interests to ensure effective and efficient governance that benefits all parties involved.
