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Examining Leadership Structure For Innovation Subsidiaries

Law360 (June 13, 2018, 12:37 PM EDT) -- Effective governance is a critical factor for health systems developing subsidiaries to pursue innovation-related activities and investments. This is in part due to the perception that the subsidiary’s success may be enhanced by including entrepreneurs on its board of directors.[1] As a result, governance planning for the innovation subsidiary may require more attention than is typically required for other health system-controlled entities. This may particularly be the case for nonprofit systems, less familiar with entrepreneurial leadership styles.

Many leading health care systems are considering, or are...
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