In SEARCH’s ongoing efforts to research what has worked and what has not worked in Philanthropy around the nation, we came across this article. Note, it is from November 2000, but since it talks about conversion foundations (foundations formed from the sale of a non-profit hospital systems to for-profit hospital systems) it seemed appropriate to consider what it says.
Here’s an example of concerns this article identifies.
An examination of six foundations, spread geographically across the country, reveals a pattern of problems in how the boards operate and the grants they make. These include conflicts of interest involving trustees and grantees; boards stacked with the directors from the newly converted for-profit hospital; members with no grant-making experience; lavish spending on trustee meetings, compensation and offices; grant-making to for-profit corporate healthcare companies and consultants; and grant-making with no remote health benefit.
The article also mentions that in some states the Attorney General has no oversight of hospital conversion foundations, or that the AG’s office is too busy or too underfunded to monitor them closely. We are lucky here in North Carolina to have Attorney General Josh Stein and his staff who have already demonstrated a strong conviction in making sure this does not happen with the sale of Mission Health System to HCA which went into affect on Feb. 1, 2019.
Read the entire article at this link.