Directors' duty to obtain a fair price in the conversion of nonprofit hospitals.
Boards of Directors of tax-exempt hospitals are increasingly struggling with whether to convert their facilities to for-profit status. Other than the traditional duties of loyalty and fair dealings imposed upon directors, there is currently little guidance to assure that boards obtain a fair price for the hospital in such conversions. The author provides recommendations to assure proper valuation.
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Smith, Read, Shaw & McClay, LLP, Washington, DC, USA.
D002608:Charities / Q000331:legislation & jurisprudence; D005375:Financial Audit / Q000379:methods / Q000592:standards*; D006077:Government Agencies; D006273:Health Facility Merger / Q000191:economics* / Q000331:legislation & jurisprudence; D006275:Health Facility Planning / Q000191:economics / Q000331:legislation & jurisprudence; D006777:Hospitals, Proprietary; D006788:Hospitals, Voluntary / Q000191:economics* / Q000331:legislation & jurisprudence; D010067:Ownership; D013219:State Government; D019464:Tax Exemption / Q000331:legislation & jurisprudence; D014481:United States