EDITORIAL: Tighten corporate rules


The Nairobi Women’s Hospital. FILE PHOTO | NMG

Good corporate governance is at the heart of business sustainability. With proper governance, a company’s board has the power to provide proper oversight on management practices that impact on business growth. This applies in all forms of business, including the health sector.

The woes of Nairobi Women’s Hospital highlight the necessity for good corporate governance. The board seems to have been caught flat-footed over accusations that the CEO and other executives were engaging in unethical practices, including rushing to admit patients, delaying in discharging them and inflating bills in an irregular drive to grow revenues.

Now, the board has been forced to place the running of the hospital in the hands of the owners, a US private equity firm. The unravelling of the affairs of Nairobi Women’s Hospital gives all players in the health sector an opportunity to review their operational and medical systems and come up with watertight policies that safeguard the interests of the business and that of its key stakeholders who include its employees and customers. Employing good corporate governance in both private and public health facilities will save all stakeholders from the ignominy of scandals and most importantly build trust to ensure long-term success.

It will also aid in creating efficiencies and reduce risks that may have a negative impact on the continuity of the business.