Know the effects of not-for-profit conversions

Because Congress and the business community currently are challenging established traditions regarding hospitals' tax status, healthcare administrators considering converting a public hospital to a not-for-profit structure must understand the tax consequences of such a move. A public hospital's conversion to not-for-profit status can affect its reporting requirements, unrelated business income tax, access to tax-exempt financing, ability to attract charitable contributions, required charter and bylaw amendments, compensation flexibility, public disclosure, and the ability to reconsider a conversion decision.