In this episode of Boards with Purpose, Phil speaks with Martin Laverty, CEO of Aruma, and Virginia Bourke, Chair of Mercy Health, about the evolving landscape of care governance across aged care, disability, healthcare and early childhood sectors. Together, they explore how governance has matured in response to rising community expectations, regulatory reform and the lasting impact of Royal Commissions. The conversation highlights the shift from compliance-focused oversight to a more holistic, person-centred approach—where quality care is defined not just by safety, but by dignity, choice and lived experience. Martin and Virginia unpack the growing expectations on directors, including the need for care governance literacy, stronger engagement with frontline services, and the ability to balance financial sustainability with high-quality care outcomes. They also discuss the challenges of measuring impact, building the right organisational culture, and navigating increasing complexity in a highly regulated environment. With practical insights on board practice, information flows and the importance of constructive challenge, this episode offers a timely perspective on what it takes to govern well in the care economy today. Key takeaways from this episode: Care governance is still maturing - hospitals lead, aged care is progressing, while disability and childcare are still developing—especially in defining outcomes. Quality care now means person-centred care - beyond safety, it includes dignity, choice, and quality of life (including the "dignity of risk"). Director accountability has significantly increased - regulation, scrutiny, and legal exposure mean directors must be more proactive, informed, and engaged. Care governance must equal financial governance - boards need the same rigour for care outcomes as they apply to financial performance. All directors must be care governance literate - not just clinical experts—every director must understand enough to ask the right questions. Measuring outcomes is the biggest challenge - the sector is still moving from activity metrics to meaningful measures of impact and wellbeing. Culture is central to care quality - poor culture drives failures; strong governance frameworks must actively monitor and shape culture. Boards must balance compliance and improvement - heavy regulation must be managed alongside innovation, adaptability, and continuous improvement. Assurance relies on the right information and questioning - boards must focus on insights, outliers, and action—not just volume of reporting. Strong relationships and real-world insight matter - trust between board and executives, plus direct exposure (e.g. site visits), are critical to effective governance. Learn more about Mercy Health Australia: https://www.mercyhealth.com.au/ Learn more about Aruma: https://www.aruma.com.au/ Find key resources for those in the NFP space in the AICD Not-for-Profit Resource Centre.
