For-profit and nonprofit mergers: concerns and outcomes.
This article examines whether merger with an investor-owned chain is beneficial to nonprofit hospitals. Drawing on the experience of Lovelace Medical Foundation, a hospital-based group practice in Albuquerque, New Mexico, in its merger with the Hospital Corporation of America, this article describes the uncertainty that accompanies a merger, elucidates specific concerns of nonprofit hospitals about loss of autonomy to a large corporation, and sets guidelines for making sure most anticipated fears fail to materialize as a result of premerger planning.
D002202:Capital Financing; D005069:Evaluation Studies as Topic; D006268:Health Facilities / Q000592:standards*; D006273:Health Facility Merger / Q000592:standards*; D006739:Hospital Administration; D006744:Hospital Bed Capacity, 100 to 299; D006777:Hospitals, Proprietary / Q000458:organization & administration*; D006788:Hospitals, Voluntary / Q000458:organization & administration*; D008962:Models, Theoretical; D009516:New Mexico; D010067:Ownership / Q000191:economics