Table Of ContentAccounting, Finance, Sustainability, Governance & Fraud:
Theory and Application
Kıymet Tunca Çalıyurt Editor
Integrity,
Transparency
and Corruption
in Healthcare &
Research on Health,
Volume I
Accounting, Finance, Sustainability,
Governance & Fraud: Theory and Application
Series Editor
Kıymet Tunca Çalıyurt, Iktisadi ve Idari Bilimler Fakultes, Trakya University
Balkan Yerleskesi, Edirne, Turkey
This series acts as a forum for book publications on current research arising from
debatesaboutkeytopicsthathaveemergedfromglobaleconomiccrisesduringthe
past several years. The importance of governance and the will to deal with
corruption,fraud,andbadpractice,arethemesfeaturedinvolumespublishedinthe
series. These topics are not only of concern to businesses and their investors, but
also to governments and supranational organizations, such as the United Nations
and the European Union. Accounting, Finance, Sustainability, Governance &
Fraud:TheoryandApplicationtakesonadistinctiveperspectivetoexplorecrucial
issues that currently have little or no coverage. Thus the series integrates both
theoretical developments and practical experiences to feature themes that are
topical, or are deemed to become topical within a short time. The series welcomes
interdisciplinary research covering the topics of accounting, auditing, governance,
and fraud.
More information about this series at http://www.springer.com/series/13615
ı Ç ı
K ymet Tunca al yurt
Editor
Integrity, Transparency
and Corruption in Healthcare
& Research on Health,
Volume I
123
Editor
Kıymet Tunca Çalıyurt
Trakya University
Edirne, Turkey
ISSN 2509-7873 ISSN 2509-7881 (electronic)
Accounting,Finance, Sustainability, Governance &Fraud: TheoryandApplication
ISBN978-981-15-1423-4 ISBN978-981-15-1424-1 (eBook)
https://doi.org/10.1007/978-981-15-1424-1
©SpringerNatureSingaporePteLtd.2020
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Acknowledgements
As book series editor, I have thanks to authors and also two distinguished pro-
fessors on health science.
MyfirstthankgoestodistiquishedProf.TarynVianfromtheUniversityofSan
Francisco. I was reading her articles before we met in person but after visiting her
office at Global Health, Boston University in 2014, my vision has widened on
ethical issues in the health sector.
My second thank goes to Prof. Jillian Kohler from Toronto University. We
decided to write this book after a panel titled “Symposium: Combating Corruption
in Health Care and Pharmaceuticals” organized by Prof. Jillian Kohler on
November 28, 2016. She is acting as president for the World Health Organization
Collaborating Centre for Governance, Accountability, and Transparency in the
Pharmaceutical Sector1 at Toronto University.
1[1] https://pharmacy.utoronto.ca/wp-content/uploads/sites/default/files/upload/who_cc/Official%
20agenda%20schedule%20ver20161030a.pdf.
v
vi Acknowledgements
If you read this book, we owe these two distinguished professors and authors
around the world.
Kıymet Tunca Çalıyurt
Introduction Chapter: How to Develop
Governance in Health Companies
Kıymet Tunca Çalıyurt
“Afterspendingtwoweeksrecoveringfromheartandlung
problems,aFloridamaninhisearlyninetieswasreleased
fromanOrlondo-areahospital.Hisconditionwastoo
unstableforhimtoreturnhome,sohisdoctorarrangedfora
shortstayatanursingfacility.Onhisdischargefromthe
hospital,thepatienttoldstaffmembersthatsomeonewas
availabletodrivehimtohisnewquarters.Butthehospital
staffinsistedhemakestheshorttripbyambulance,assuring
himthat“Medicarewillpayforit.”Theambulanceride
wentsmoothly,andthepatient,fullyconsciousandawareof
whatwashappeningduringthetrip,arrivedsafelyatthe
nursingcenter.Severalweekslater,hereceiveda627USD
invoicefromtheambulancecompany.Thebillforthe
eight-milejourneyincludedchargesforservicessuchasthe
availabilityandactualuseofoxygen(twoseparatecharges)
aswellassomethingcalledan-OSHAsanitaryprocedure-.
Theoxygen,forwhichhewascharged,wasneverprovided,
andcontrarytowhathewastoldbyhospitalpersonnel,
Medicarebalkedatpayingfortheambulanceservice.This
caseispersononebecauseanelderlymanImdescribingis
myfather.”(Leap,2011)[1]
ThisstorytakenfromthebookwrittenbyTerryL.Leapisanordinarycasethatwe
can face within developed and also developing countries every day. When we talk
abouttheaccountable,sustainable,andethicalhealthsector,wealsoshoulddiscuss
and search on the following issues. Founding Compliance Department, which
controls audit and report all following duties in a health institution, is a valuable
recommendation.
(cid:129) Fraud examination and reporting in the health sector,
(cid:129) Internal control procedures and reporting in the health sector,
(cid:129) Corporate Governance and reporting in the health sector,
(cid:129) Sustainability and reporting in the health sector,
(cid:129) Business ethics in the health sector,
(cid:129) Taxation, taxation planning in the health sector. [2]
vii
viii IntroductionChapter:HowtoDevelopGovernanceinHealthCompanies
Here,weshoulddeterminethelistofhealthcareinstitutionswhichmeansapublicor
nonprofit organization within this state that provides health care and related services,
includingbutnotlimitedtotheprovisionofinpatientandoutpatientcare,diagnosticor
therapeuticservices,laboratoryservices,medicinaldrugs,nursingcare,assistedliving,
elderly care and housing, including retirement communities, and equipment used or
useful for the provision of health care and related services. (Oregon, 2019) These
institutionsshouldfollowthefollowingissuesotherthanfinancialstatementregulations
to be sustainable, reliable, comparable, ethical institutions.
Table1 GoodGovernanceChecklistforHealthInstitutions
Goodgovernanceissueforhealthcareinstitutions IssuestoDiscuss
Sustainability(GRI)2 ImplementationSustainability
(UNGC10Principles)3,4
RecruitingSustainabilityStaff
SustainabilityReporting
SustainabilityCommittee
SustainabilityCertification
SustainabilityOffice
CorporateGovernance(OECD) CorporateGovernanceCommittee
CorporateGovernanceReporting
RecruitingCorporateGovernanceStaff
(continued)
2Gal(2018)hasstatedthatfirmshaveincreasinglyuseddiversechannelstodiscloseinformation
about their socially responsible activities to different stakeholder groups. For disclosures to
regulators,theformatisusuallyquiterestricted,andfirmshavereceivedsomespecificguidanceon
the method, the format, and the content of these communications. (Security and Exchange
Commission,2010)However,inmakingthesedisclosurestoothergroupsthereareamultitudeof
channelsandformatsavailable.Oneofthemoreformalavenuesofdisclosureisthereportsthat
usetheGlobalReportingInitiative(GRI)format.(GRI2006,2011).
3TheUNGlobalCompactinitiativeisleadershipplatformthataimedatencouragingbusinessfor
theestablishment,performing,andpublishingofresponsibleandsustainablecorporateprocedures
andimplementations(UNGC,2014)GlobalCompactseekstopromotecompaniestobemember
ofthisvoluntaryorganizationby10principles.Theprinciplesareclassifiedintofourcornerstones:
humanrights,labor,environment,andanti-corruption.(ÇalışkanandEsen,2018).
4UNGC,TheTenPrinciplesoftheUnitedNationsGlobalCompact,https://www.globalcompact.
ca/about/ungc-10-principles/.
IntroductionChapter:HowtoDevelopGovernanceinHealthCompanies ix
Table1 (continued)
Goodgovernanceissueforhealthcareinstitutions IssuestoDiscuss
InternalAuditInternalControl—Integrated InternalControlProcedures
Framework(COSO)5,6,7
Cybersecurity
InternalControlReporting
RecruitingInternalAuditStaff
CertificationforInternalAuditStaff
SustainableTaxation8(NationalCodeand TaxCodeImplementation
InternationalOECDModels)
TaxCodePlanning
TaxDeclaration
Recruitingtaxexpertwhoknowstax
exemptionsonhealthsector
CorporateReputation9 Evaluatingreputation
(continued)
5Originally formed in 1985, COSO (Committee of Sponsoring Organizations of the Treadway
Commission) is a joint initiative dedicated to improving organizational performance and
governancethrough effective internal control,enterprise riskmanagement, andfraud deterrence.
COSO is jointly sponsored by the American Accounting Association (AAA), the American
Institute of CPAs (AICPA), Financial Executives International (FEI), The Institute of Internal
Auditors(IIA),andtheInstituteofManagementAccountants(IMA).
6(In USA) General Accountability Office (GAO)’s Standards for Internal Control in the Federal
Governmentprovidesthatinternalcontrolbedesignedtoensurethatalltransactionsandothersignificant
events be clearly documented and the documentation be readily available for examination.
(GAO/AIMD-00-21.3.1.)TohelpcombatfraudandabuseinhealthcareprogramsincludingMedicare
andMedicaid,CongressenactedtheHealthInsurancePortabilityandAccountabilityActof1996.GAO
makes11recommendationstoDepartmentofHealthandHumanServices(HHS)andDepartmentof
Justicetoreviseordevelopwrittenproceduresthatincludedocumentationandmonitoringcontrolsfor
HealthCareFraudandAbuseControlProgram(HCFAC)activitiesandreporting.(Townsend,2013).
7Dawson,S.,Babinchak,J.(2019)COSOIssuesGuidanceforHealthcareProvidersCollaboration
withCrowe,CommonSpiritHealthAimstoStrengthenIndustryGovernanceandInternalControl,
https://www.coso.org/Documents/COSO-Issues-Guidance-for-Healthcare-Providers.pdf.
8Duetomarketdynamics,taxpayersandauthoritiesinteractcontinuouslyandtheirinterestsareoften
interwined. Consequently, sustainability-driven goals may appear on their agendas, as they serve the
interests of both. It goes without saying that corporate and individual taxpayers can display easier a
sustainabletaxbehaviourifauthoritiessetupataxframeworktoachievegreenpolicyobjectives.The
characteristicsofthisframework(i.e.,taxincentivesandtaxpenalties)arecapturedeconomies(KPMG,
2013)Rangingonascalefrom0to50,theindexismeanttoinformcorporatetaxpayersofthefacilities
and sanctions implemented by governments in order to promote sustainable business practices.
(Batreanceandetal.,2018).
9CaliskanandEsenhavestatedthattherearenumerousmethodsandtoolstomeasurecorporate
reputation;however,thereisnoconsensusaboutit.SomescholarsasSiltaoja(2006)supportsthat
thereisnorightsetofcriteriabecausedifferentevaluatorsusedifferentconcepts.Severalscholars
haveusedsomemethodstomeasurecorporatereputation.Reputationquotientwhichwasdevised
byHarisInteractiveismostcommonmeasurement.(CaliskanandEser,2018).
