Abstract
Business corporate governance principles have recently been discussed in the managerial literature in regards to management practice in the public sector. Health services rank among the largest public sectors in OECD countries. Efficient governance of hospitals requires the responsible and effective use of funds, professional management and competent governing structures. This paper compares and contrasts hospital governance in two plural health care systems – Czech Republic and New Zealand. Both countries have a history of economic and structural reforms that has resulted in changes of the health care sector and hospitals in particular. Similarities and differences in management ideology and practice are identified and a functional model that addresses four issues that are integral to effective governance of hospitals are discussed.