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Governance involves organizing an institution in such a way that the quality of management and oversight is ensured. In recent years, this has become an increasingly important topic in the healthcare sector. The underlying idea is that good governance will enhance the quality of care. There are several key points to consider in the healthcare sector, which will be addressed in the blog series on governance in healthcare.
In the healthcare sector – as well as in housing cooperatives and education – there have been several major issues. For example, the bankruptcy of Slotervaart Hospital and the mismanagement at Meavita. As a result, the government has increasingly imposed conditions and regulations aimed at preventing such issues. These rules pertain to governance: the better the quality of management and oversight in a healthcare institution, the smaller the chance of problems occurring. And if issues do arise, the organization is structured in such a way that timely intervention can limit the damage.
The government has regulated governance in healthcare through several laws and regulations:
Additionally, a new legislative project is already in the pipeline. On January 20, 2025, the bill for the Act on Integrity in Business Operations for Healthcare and Youth Assistance Providers (Wibz) was submitted to the House of Representatives, which includes further regulations on profit distributions and the attraction of financing and capital by healthcare institutions. This aims to combat and exclude fraudulent providers in healthcare.
The relevant regulations are highly fragmented and do not stem from a single law. For many healthcare executives and supervisors, this threatens to become an impenetrable maze of regulations. However, they are responsible for ensuring that their organization is structured in accordance with applicable laws and regulations, and thus compliant. On one hand, they must be accountable to external regulators, such as the Dutch Healthcare Authority (NZa) and the Health and Youth Care Inspectorate (IGJ). In addition to monitoring the quality of care, these regulators also check whether governance is in order and whether there is good quality management. On the other hand, healthcare executives and supervisors must also be accountable to the stakeholders of their organization, such as patients (or clients), employees, suppliers, insurers, and – in the case of a commercial healthcare institution – its shareholders. Since the introduction of the Wbtr, they also face greater liability risks if things go wrong. All in all, the role of healthcare executives is not an easy one.
Do you have questions about governance in healthcare? Please contact Sonja Geldermans, attorney-at-law Corporate Law specializing in Governance and Supervision.
Blog series
This blog series will address various key points of governance in healthcare, such as the role of the client council and the regulations that apply (or will apply) to commercial healthcare institutions.
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