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Are foundations bearing fruit?

J Greene, S Lutz

    Modern Healthcare
    |March 20, 1995
    PubMed
    Summary

    This study examines whether tax-exempt foundations fulfill their commitments following the acquisition of not-for-profit hospitals by investor-owned chains. It analyzes Columbia/HCA Healthcare Corp.

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    Area of Science:

    • Healthcare Management
    • Health Economics
    • Nonprofit Organizations

    Background:

    • The increasing trend of not-for-profit hospitals being sold to investor-owned chains raises questions about community benefits.
    • Previous installments explored tax implications and charity care differences between hospital ownership models.

    Purpose of the Study:

    • To evaluate the performance of tax-exempt foundations in delivering on their stated promises.
    • To analyze the acquisition strategies employed by Columbia/HCA Healthcare Corp., specifically focusing on partnership agreements with not-for-profit entities.

    Main Methods:

    • Analysis of Columbia/HCA Healthcare Corp.'s strategy in acquiring not-for-profit hospitals.
    • Review of the commitments and performance of tax-exempt foundations associated with these transitions.

    Main Results:

    • Findings on whether tax-exempt foundations uphold their promises are detailed.
    • The effectiveness of Columbia/HCA's partnership agreement strategy in hospital acquisitions is examined.

    Conclusions:

    • The study provides insights into the accountability of tax-exempt foundations in the evolving hospital market.
    • Understanding these dynamics is crucial for assessing the true impact of hospital sales on communities.

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