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Methods Of Healthcare Delivery System01:26

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At the different levels of the healthcare system, we see varying methods of healthcare used. These methods include managed care systems, case management, and primary healthcare.
Managed Care System:
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Hospital conversion foundations. Issues in creation, operation, and evaluation.

C M Baker1

  • 1School of Nursing, Center on Philanthropy, Indiana University, Indianapolis, Indiana, USA. cbaker1@iupui.edu

JONA'S Healthcare Law, Ethics and Regulation
|March 13, 2002
PubMed
Summary
This summary is machine-generated.

Many nonprofit hospitals converting to for-profit status fail to establish foundations for charitable assets, leading to significant public monetary losses. This analysis explores legal and organizational challenges in creating effective hospital conversion foundations.

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Area of Science:

  • Healthcare Management
  • Nonprofit Law
  • Public Finance

Background:

  • The conversion of nonprofit hospitals to for-profit entities is a significant trend in US healthcare.
  • Associated nonprofit charitable assets now exceed $9 billion.
  • Less than 21% of converting hospitals establish hospital conversion foundations, resulting in substantial public monetary losses.

Purpose of the Study:

  • To examine key legal and organizational issues concerning hospital conversion foundations.
  • To identify factors influencing the establishment and effectiveness of these foundations.

Main Methods:

  • Review of legal and organizational frameworks for hospital conversions.
  • Analysis of factors influencing foundation establishment, mission, revenue use, governance, and evaluation.

Main Results:

  • A low rate of hospital conversion foundation establishment (less than 21%) among 525 converting hospitals.
  • Considerable public monetary losses due to the lack of established foundations.
  • Identification of critical issues in fair value assessment, mission definition, revenue allocation, governance structures, and performance evaluation.

Conclusions:

  • The establishment of hospital conversion foundations is crucial for preserving charitable assets during nonprofit hospital conversions.
  • Addressing legal and organizational challenges is vital to ensure fair value, appropriate mission alignment, and effective governance.
  • Improved practices are needed to maximize public benefit from the conversion of nonprofit healthcare assets.