Jove
Visualize
Contact Us
JoVE
x logofacebook logolinkedin logoyoutube logo
ABOUT JoVE
OverviewLeadershipBlogJoVE Help Center
AUTHORS
Publishing ProcessEditorial BoardScope & PoliciesPeer ReviewFAQSubmit
LIBRARIANS
TestimonialsSubscriptionsAccessResourcesLibrary Advisory BoardFAQ
RESEARCH
JoVE JournalMethods CollectionsJoVE Encyclopedia of ExperimentsArchive
EDUCATION
JoVE CoreJoVE BusinessJoVE Science EducationJoVE Lab ManualFaculty Resource CenterFaculty Site
Terms & Conditions of Use
Privacy Policy
Policies

Related Experiment Videos

Those conversion blues.

D A Forgione1

  • 1Merrick School of Business, University of Baltimore, MD, USA.

Journal of Health Care Finance
|June 3, 1999
PubMed
Summary
This summary is machine-generated.

Nonprofit health organizations are converting to for-profit status to access capital amid declining payment rates. This transition presents challenges balancing public benefit with the need for capital and market flexibility.

Related Concept Videos

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by
Same author

Diversion of prescription drugs to the black market: what the states are doing to curb the tide.

Journal of health care finance·2001
Same author

Incentivising appropriate care: the case of immunizations.

Journal of health care finance·2000
Same author

The use of DRGs in health care payment systems around the world.

Journal of health care finance·1999
Same author

Corporate compliance plans in health care organizations: a top-down perspective.

Journal of health care finance·1998
Same author

Health care financial and quality measures: international call for a "balanced scorecard" approach.

Journal of health care finance·1997
Same journal

The Growing Importance of Cost Accounting for Hospitals.

Journal of health care finance·2019
Same journal

Cost of Practice Transformation in Primary Care: Joining an Accountable Care Organization.

Journal of health care finance·2019
Same journal

Assessing the cost burden of United States FDA-mandated post-approval studies for medical devices.

Journal of health care finance·2017
Same journal

Determinants of differentials in pneumonia mortality in the UK and France.

Journal of health care finance·2014
Same journal

Health policies and intervention strategies: a description of current issues and approaches to care of the public health and health care system in the United Arab emirates.

Journal of health care finance·2014
Same journal

The impact of star physicians on diffusion of a medical technology: the case of laparoscopic gastric bypass surgery.

Journal of health care finance·2014
See all related articles

Area of Science:

  • Healthcare Management
  • Health Economics
  • Nonprofit Sector Transformation

Background:

  • Capitated payment systems are increasingly prevalent, leading to reduced average payment rates for health services.
  • Managed care organizations introduce competitive pressures, driving demand for capital investment in information systems, cost-efficient facilities, and innovative service delivery models.

Purpose of the Study:

  • To examine the motivations and challenges associated with nonprofit health care organizations converting to for-profit status.
  • To analyze the implications of these conversions for accessing capital markets and maintaining organizational viability.

Main Methods:

  • Qualitative analysis of conversion trends in U.S. health care organizations.
  • Review of financial, regulatory, and operational factors influencing conversion decisions.

Related Experiment Videos

Main Results:

  • Conversions are driven by the need for capital and market expansion, but face significant hurdles.
  • Obstacles include public benefit obligations, private inurement concerns, and political costs.
  • Balancing public interest with organizational flexibility and capital access is critical.

Conclusions:

  • The conversion of nonprofit health care organizations to for-profit status is a complex process with significant trade-offs.
  • Successful conversions require careful structuring to protect the public interest while ensuring financial viability and competitive advantage.
  • Navigating regulatory and political landscapes is essential for organizations seeking to access equity capital markets.