Internal control effectiveness: A study of medical institutions

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Abstract

As a healthcare organization, hospitals should professional service to their clients. Therefore, hospitals have obligation to improve overall service quality. In exploring the relationship between hospital budget control and organizational effectiveness, the hospital’s management staff has rich professional medical knowledge, they still have not received the training of general corporate organization and the management technology of corporate management. To improve the effectiveness of the organization, managers in hospitals should have enough experience in management control and rely on peer control. Therefore, internal control is a management process that integrates various management control and evaluation measures within the hospital, this study believes that the management staff of medical institutions should use common standards to evaluate the degree of a hospital operation, management efficiency, and medical quality. An internal control system can be simultaneously built and implemented by the topmost level of management in a hospital. It involves the commercial and business experiences related to an organization’s control, financial, and other systems. It regularly and effectively ensures compliance with management policies while safeguarding assets as well as the completeness and accuracy of safety records. Internal control is an indispensable aspect of the governance norms and methods of many companies. The hospital can also achieve value enhancement and sustainable existence through the continuous operation of the internal control system designed, and the supervision of external audit firms.

Keywords: Internal Control, Bureaucratic Organization, Organizational Effectiveness

Authors’ individual contribution: Conceptualization – S.-N.L.; Methodology – S.-N.L.; Investigation – H.-Y.H.; Writing – S.-N.L. and T.-C.W.; Supervision – H.-Y.H.; Funding Acquisition – T.-C.W.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G30, L39

Received: 08.12.2020
Accepted: 15.03.2021
Published online: 16.03.2021

How to cite this paper: Lee, S.-N., Weng, T.-C., & Huang, H.-Y. (2021). Internal control effectiveness: A study of medical institutions. Corporate Ownership & Control, 18(3), 66-74. https://doi.org/10.22495/cocv18i3art6