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Nonprofit hospitals’ leaders: Private profit and public service

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The Wall Street Journal has used its  extensive analysis of   the outside business ties of executives and trustees of hospitals that, under the tax code, are deemed “nonprofit” to show just how pervasive those ties can be. Indeed, these connections can be very lucrative  for some people involved in the governance of these institutions. The mating of “public service” and private profit.

The article shows a staggering level of conflicts of interest.

The paper notes:”While having relationships with companies doing business with a nonprofit hospital isn’t necessarily improper—as long as the deals are disclosed and at market rate—administrators and board members sometimes may be forced to choose between what’s best for the hospital and what’s best for their private interests.”

“Hospitals rank among the largest nonprofits in the country. Because they often are big employers and have complex business arrangements, they face these dilemmas far more often than most other kinds of nonprofits, the WSJ notes.

To read the article, please hit this link.

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