Not-for-Profit Hospitals: Conversion Issues Prompt Increased State Oversight

摘要

In response to these concerns, you asked that we review the process that some not-for-profit hospitals have used in converting to for-profit-status. Specifically, we determined for selected conversions (1) the method used to value assets; (2) the process used to solicit interest and obtain bids; (3) some of the terms negotiated as part of the sales agreement, including provisions for continued charity care; (4) the extent of community involvement in the process; and (5) how the proceeds from some of the sales were used to fulfill charitable missions. We also determined the role state and federal governments play in regulating and monitoring hospital conversions.