Corporate reorganization: the last gasp or last clear chance for the tax-exempt, nonprofit hospital?
The current revolution in health care organization and financing, increased competition, and a retrenching of industry from its commitments to expansion of health care benefits challenge the nonprofit hospital's existence as a viable entity. Hospital governing boards and administrators have turned to corporate reorganization in order to maintain their financial position and to continue to serve their communities. This Article examines the not-for-profit concept and the problems facing nonprofit hospitals. It reviews the pros and cons of reorganization and the for-profit/nonprofit controversy. It questions whether the hybridization of the hospital results in a stronger or weaker species and discusses the possible effects of the newly structured entity on the quality and delivery of health care. Finally, the Article suggests that the nonprofit hospital may survive only by a continued commitment to societal and communal values, to service rather than to profit; that this commitment is adequate justificaton for the preservation of the nonprofit system, and its preservation will reinforce and strengthen the concept.
Horwitz
M
M
Helapol Associates, Manchester, CT.
D003363:Cost Control / Q000331:legislation & jurisprudence; D003953:Diagnosis-Related Groups / Q000331:legislation & jurisprudence; D006739:Hospital Administration / Q000331:legislation & jurisprudence*; D006754:Hospital Restructuring / Q000331:legislation & jurisprudence*; D006788:Hospitals, Voluntary / Q000331:legislation & jurisprudence*; D006801:Humans; D007882:Legislation, Hospital; D013660:Taxes / Q000331:legislation & jurisprudence; D014481:United States