Study On Improving Corporate Governance Structure In Public Institutions

Produced in the planned economy system, public institutions provide a large number of public service products to the society as an extension of the government functions. At the same time, the employees, property, and other rights of the institutions is tightly controlled by the government, and becomes a subsidiary of the government. With the continuous deepening of the reform and opening-up policy and the developing of marketing economy, institutions have exposed problems, such as low work efficiency and poor public role, which triggered the reform of institutions since 90’s. In order to solve these problems, the Central Committee of the Communist of China and the State Council decides to establish a corporate governance structure in public institutions, improve the management system and working mechanism, realize the “separate the government from institutions, and management from service”. Since 2012, the central organization takes the lead on the pilot work to start corporate governance structure. According to the current situation, more than 600 institutions have set up the corporate governance structure, and that is the initial result: the corporate governance structure of pilot unit is relatively sound and the reform degree is deepening which promotes scientific development. While there are much problems, for instance, to promote the implementation is difficult, and relevant supporting system reform is behind target and so on.In the pilot units of public hospital reform, Beijing Chaoyang Hospital, for its own development, take the initiative to reform and set up corporate governance structure. Based on the stakeholder theory as the main theoretical basis, with the combination of the actual reform details of the Beijing Chaoyang Hospital, this thesis introduces how it complete the construction, and puts forward the defects and insufficiency of the corporate governance structure. Thereby it further clarifies all the rights and responsibility of the public hospitals, and defines the relationship among the council and the board of supervisors, managers, and the third party supervision. Thus, establishing and improving the corporate governance structure can provide experience for other institutions.Through the research, we conclude the results of the specific change of hospital governance structure. So we think that some problems exist in Chaoyang Hospital, including the Council does not fully play the role, and the relevant supporting system needs to improve. Based on these points, suggestions to improve Chaoyang Hospital corporate governance structure is pointed out, that is, improving the hospital association, position, scale, and the procedure rules of council, the composition, change, and the specific term of members, authority and party organization, management and other supervisory mechanism and the personnel system.Through the above analysis of public hospital, we find that, the core problem of corporate governance structure in public hospitals is the function of the council, which has general significance to the publics. That is to say, the functions and designing of council is the core issue in the governance structure in China’s institutions. The council should play the core function of decision-making, but also it can be both consultant and supervision. One point is about the decision-making functions, mainly dealing with relationship among the council, and the Party, the host units and other government departments; second point is mainly based on mode selection, and find out what is the specific supervision of the council.