- Shopping Bag ( 0 items )
In the past two decades countless nonprofit community hospitals and health care facilities have combined with for-profit institutions, joined large nonprofit systems, or converted to joint ventures with for-profit chains. As we enter the next millennium, this trend is accelerating.
Health Care Alliances and Conversions provides nonprofit directors with all the practical advice they need to plan for their institution's future and to create decision-making systems that will eliminate their risk of personal liability. This advice is particularly timely when it comes to nonprofit hospital conversions and alliances.
Health Care Alliances and Conversions provides nonprofit hospital directors and senior managers with practical guidance for understanding the numerous forms of conversions including the most controversial type of transactions—joint ventures with for-profit chains. The book is filled with the information and tools health care leaders need to plan for the future of their institutions and effectively evaluate their strategic partnering options.
In clear, concise, and non-legal language, authors James R. Schwartz and H. Chester Horn, Jr.—the nation's leading experts in the health care conversion field—explain nonprofit directors? fiduciary duties in these complex conversion transactions and offer practical advice that can help facilitate this difficult decision-making process. The book clarifies nonprofit directors? and trustees? responsibilities to the communities they serve and offers solid recommendations on how to manage the conversion process without damaging institutions? or directors? reputations.
The authors describe how to create marketing and valuation strategies that will meet the legal standards enforced by government regulators. They also reveal the steps for quickly closing a deal and provide the keys to avoiding pitfalls that can block approval. Step by step the book outlines how trustees and directors can protect themselves from personal liability, and explains the legal limitations on the use of conversion proceeds. In addition, the book is filled with easy-to-understand charts and tables that provide a handy reference summary of the legal duties that apply to these complex transactions.
A Blueprint for Effective Board Oversight and Action
Filled with practical information and step-by-step guidance, Health Care Alliances and Conversions is an indispensable resource for directors and trustees who are coping with the decision to convert their not-for-profit health care institutions.
"James Schwartz and Chet Horn . . . are now the nation's leading experts on not-for-profit hospital sales and conversions. Reading this book is truly learning at the knee of the master. It is indispensable for not-for-profit boards of directors'from the Foreword by Linda Miller, president, Volunteer Trustees Foundation for Research and Education
"This book is a comprehensive primer in the arcane world of nonprofit hospital asset conversions. It is a -must read? for nonprofit hospital trustees who are contemplating a sale, lease, or joint venture with a for-profit company."—Bud Lee, president, California Association of Catholic Hospitals
"The guide for decision makers, a how-to-do-it manual for every nonprofit hospital director in America. Our country's health care will be much improved if directors buy and read this book."-Phillip L. Isenberg, of counsel with the firm of Hyde, Miller, Owen & Trost, Sacramento, California; former California State Assemblyman and author of California's law regulating the sale or joint venturing of nonprofit hospitals with for-profits
The book contains black-and-white illustrations.
This book is a ground-breaking tool for board members and community representatives coping with the decision to convert their not-for-profit health care institutions to for-profit status.
Duty of Obedience to Charitable PurposeStep 1: Find Out to Whether You Can Convert Your Hospital at AllStep 2: Determine How You Can SpAnd the Charity's Money
Duty of Loyalty
Duty of Due Care
Get the Board Involved Early
Identify the Legally Permissible OptionsDetermine RestrictionsAvoid Common Errors
Assemble the Right Team of Experts to Work with Your Management, Identify the Problems, and RecommAnd Solutions
Shape Your Options to meet Your Goals and Work with Your CommunityMeeting Your GoalsEngaging the Community
Give Yourself Enough Time to Make a Reasoned Decision
Planning for the Post-Conversion Charity
Goal 1: Educate the Affected Community and Involve It in the Decision-making Process
Goal 2: Create a Structure for the Post-Conversion Charity That Is Consistent with Your State Law
Goal 3: Create a Charitable-SpAnding Plan for Your Post-Conversion FoundationThe Historical-Services OptionThe Charitable-Component OptionThe Supporting-Organization Option
Establish an Investment and Management Structure for the Conversion ProceedsStep 1:Setting Your Investment GoalsStep 2: Selecting an Investment AdviserStep 3: Establishing Written Investment Guidelines That Include DiversificationStep 4: Monitoring Investment PerformanceStep 5: Negotiating Terms to Protect the Charity from Loss or Excessive Fees
Selling Your HospitalThe Sale ProcessGetting the Right Advice at the Right Price: Marketing and Valuation Experts, Negotiating Expert FeesAvoiding Conflicts of InterestObtaining a Formal Valuation: Necessity, Timing, Source and CostUnderstanding Valuation Advice: Fairness Opinions and Valuation Opinions, Valuation MethodologiesMarketing Your Hospital: Soliciting Interest by Buyers, Getting the Bidding Started, Auction Sales: Optimizing the Possibility of Obtaining Fair Market Value, Single-Bidder Sales: "Shopping the Deal" and Protecting the Price, Choosing the "Best" OfferDocumenting the Agreement: Letter of Intent, Definitive AgreementConclusion
Joint VenturesKeys to a Successful Joint-Venture AgreementThe Typical Joint-Venture Model: Advantages, RisksPolicy AnalysisInvestment Analysis: What Percentage of Your Assets Will You Invest? Will Your Returns Equal the Value of the Assets You Invested? Could You Do Better Elsewhere? Process: Understanding the Issues, Get Fair Market Value, Make Sure the Deal Documents Protect YouProtecting Yourself and Your Hospital: Understand the Limitations of Your Expert(s), Let the Market Work for You, Pursue Your Values, Not Someone Else's, Evaluate Comparable Proposals, Be Wary About Using Selection Criteria Other Than PriceStructuring the Transaction: Letter of Intent, Contribution and Sale Agreement, Operating Agreement, The "Put," Conclusion
Legal Protections for Directors and Trustees—and the Consequences for Failing to Use ThemLegal Protections: Business Judgemnet and Careful Conduct Rules, Delegation, Reliance, and Other Safe Harbors, Directors' and Officers' Liability Insurance, IndemnificationLegal Consequences: Charitable-Trust Civil Actions, Internal Revenue ServiceConclusion
AppAndix A: Glossary
AppAndix B: The Law of Fiduciary Duties Affecting Directors and Trustees of Nonprofit HospitalsDuty of Obedience to Charitable Purpose: Defining the Trust, Adapting the Trust to Changing Times and Circiumstances, Restrictions on he bUse of Conversion ProceedsDuty of Loyalty: General Standards, Trust-Law Standard, Corporate-LAw Standard, california standard, real-Life ExamplesDuty of Due Care: Standards in Practice: Good Faith, reasonable Inquiry, Dure Diligence, Process Protections