Hospital fund.docx - 1 In Practice Hospital\/HMO issues 1 HMOs federal loan programs ceased conversions provided access to capital through the public

Hospital fund.docx - 1 In Practice Hospital/HMO issues 1...

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1. In Practice – Hospital/HMO issues 1. HMOs – federal loan programs ceased, conversions provided access to capital through the public sale of securities. 2. Hospitals – impetus for hospital mergers and conversion of hospitals was for economic synergies and easier access to capital needed for new equipment to attract patient business (without this capital, nonprofit hospitals at competitive disadvantage) 1. Reorg corp structures in attempt to gain operational flexibility in the face of increased regulation, implement innovative approaches and improve balance sheets, attract doctors and patients, and deliver better health care more efficiently. 2. Yet only 1% of all nonprofit hospitals have converted (unlike high number of HMOs) 1. Institutions are more longstanding and have significant place in most communities 1. Ownership by national investor-owned firms would threaten valuable community institution and replace local control with new distantly determined standards.
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