Governance & Reports
Governance
McCord Hospital is a Section 21 Company, not-for-shareholder-profit entity. Any profits which are generated will be re-invested into the Hospital to further improve the medical equipment, facilities and provision of patient care.
McCord Hospital is governed by a Board of Directors led by Chairman Professor Paulus Zulu. The Board meet once per month and are responsible for the implementation of good corporate governance at McCord, for providing advice on the future strategy of the organisation, and for providing input and advice on key operational decisions as required. Click here to view profiles and photographs of our Board of Directors.
The role of the Executive Committee is to support the Chief Executive Officer, Dr Helga Holst, in managing the operations of the Hospital. The Executive Committee meets on a weekly basis to discuss and decide on operational policies appropriate for the Hospital, monitor progress on the change management initiatives and make decisions within the scope of the authority delegated by the Board. The Executive Committee is also responsible for the implementation of appropriate monitoring and preventative controls. Click here to view profiles and photographs of the Executive Committee members.
Day to day operations are headed up by a strong Management Team, led by the Chief Operations Officer, Kowie de Klerk. As from 2010, McCord operates under a Business Unit organisational structure. Business Units consist of multi-disciplinary teams built around the delivery of the hospital's key service areas. The Business Unit Leaders are responsible for the operational and financial performance of their Business Unit, and have helped to establish decentralised accountability across the hospital. Click here to view profiles and photographs of our Business Unit Leaders.
McCord has the following Business Units:
1. Specialist Care
2. Clinical Governance
3. Emergency and Ambulatory Care
4. HIV Care
6. Senior Nursing Services
7. Nursing School
8. Research
Financial Overview
Though McCord is a not-for-profit organisation, the financial aspects are still critically important for the future sustainability of the Hospital. Sustained operating losses could potentially result in the forced closure of the Hospital, or severely limit the funds available for re-investment in the Hospital in the form of capital equipment, staff training and development.
The vision for the hospital is to provide high quality, low cost healthcare to our patients whilst maintaining a sustainable financial model. This is an extremely difficult balance to achieve in view of the significantly increased cost of providing healthcare, the global financial crisis, a severely stretched national health system and the patients’ wishes for the best possible health service. Excellent financial management is a cornerstone of this vision, to ensure that we make optimal use of the resources with which we are entrusted, and to ensure a cost-effective service delivery.
Funding model
McCord Hospital offers a subsidised fee for patient service. McCord Hospital is fortunate to benefit from a number of long-standing relationships with donors and funders. These grants and donations help to reduce the payment required by the patient, or student nurse. The main sources of funding are as follows:
- The KwaZulu Natal Department of Health (DoH) provides a monthly subsidy in terms of a Service Level Agreement, whereby McCord will support the DoH in the provision of healthcare services in the province and on the terms and conditions stipulated in the SLA.
- Funds received from the US President's Emergency Plan for AIDS Relief (PEPFAR), in terms of which McCord Hospital receives a significant portion of the funding required for the HIV Services provided at McCord.
- Donations received from individuals, companies or other organisations who support the work undertaken at McCord.
Financial position
The 2010 Annual Report contains further information and explanation of the financial position of the Hospital. The hospital is currently in a difficult financial position with a number of years of operating losses having really stretched the hospital’s available financial resources. A number of change management initiatives undertaken at the hospital are with the intention of achieving financial sustainability. It is pleasing to note the improvement in financial practices which this management focus has already yielded, and this is anticipated to reflect in an improvement in the financial results of the hospital.
McCord Hospital needs to target profitability for a number of years to reduce the accumulated deficit which has built up over the years. Management are also working hard to change the perception that “profit is not a good thing for a not-for-profit institution.” A sensible level of profit is critical to ensure sufficient funds are available for the necessary investment in capital equipment. A return to profitability for the Hospital is also necessary to attract external donor funding, and as a Christian hospital we believe in the biblical principle which requires us “to be faithful in the small things, to be rewarded with bigger things”. The Board and Hospital management believe that McCord can play an integral role in defining the future of low cost healthcare services in the country, but we fist need to prove our credentials by achieving operational and financial excellence at McCord.
Reports
Annual Financial Audits are conducted by independent auditors, Deloitte.
Click here to download the 2010 McCord Annual Report.
Audited financial statements from previous years are available upon request to our Marketing Department - marketing@mccord.co.za.