LTC boards facing greater role in corporate compliance. (News).

Since the HealthSouth and Enron corporate scandals, top executives have faced greater scrutiny over ethics and corporate compliance. Often overlooked are the responsiblities of boards of directors in maintaining corporate accountability.

But stockholders, as well as the federal government, are beginning to pay more attention to board activities. Earlier this year, stockholders of HCR Manor Care, the third-largest nursing home chain in America, approved a proposal demanding that the company's board members face elections each year to maintain their positions. The 11-member Manor Care board said it remained opposed to the idea, while chairman and chief executive officer Paul Ormond said the board would consider the measure.

An attempt by the federal government to head off more Enron-type scandals, the federal Sarbanes-Oxley Act of 2002 was designed to set stricter standards and better regulate the actions of executives, accountants, and boards of public companies. But even directors of private companies are coming under increased pressure to monitor financial and operational activities.

Increased scrutiny

"There is a lot more scrutiny by the OIG, and if it's a public …