Influence of Corporate Governance Practices on Performance of Faith-Based Hospitals: A Systematic Review

Faith-based health facilities form a key pillar in the provision of health services, especially in the rural and marginalized areas of the country where public health service provision is low, failed or non-existent. However, these institutions are exposed to the risks of continued reliance on boards of management constituted by religious leaders, leading to weak governance structures. This review focused on the effect of corporate governance on the performance of faith-based hospitals. A systematic review of the literature was conducted from January 2017 until February 2022. Google Scholar databases were searched using keywords such as corporate governance practices, hospital board shared strategic direction, hospital board accountability, and faith-based hospital performance. Studies were included if their outcome measure was hospital performance or health service delivery. The search was restricted to the English language. The methodology was aligned with the guidelines of Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA). 10 articles met the inclusion criteria. Of these studies, 7 investigated hospital performance and 3 investigated health service delivery. 100% of the articles showed that good corporate governance practices improved performance and health service delivery. On average, there was a 30% and 40% increase in hospital performance due to accountability and shared strategic direction respectively. The shared strategic direction was effective compared with accountability. Good corporate governance such as having a shared strategic direction and holding board members accountable improved the performance of the hospitals.