Because equity capital is becoming an important financing source for health care organizations, the conversion of many such organizations from nonprofit to for-profit status is a significant public policy issue. Since many states require converting nonprofits to repay the “community” for its investment during the nonprofit status period, three questions arise: (1) How much is the entity worth? (2) How much of that worth should be returned to the community? (3) In what form should it be returned? The paper addresses these questions, and demonstrates why responsible public policy calls for them to be carefully considered if community interests are to be preserved.
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David W. Young; Ownership Conversions in Health Care Organizations: Who Should Benefit?. J Health Polit Policy Law 1 August 1986; 10 (4): 765–774. doi: https://doi.org/10.1215/03616878-10-4-765
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