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The Pot of Gold

Monitoring Health Care Conversions Can Yield Billions of Dollars for Health Care

By Eleanor Hamburger, Jeanne Finberg & Leticia Alcántar

When nonprofit corporations convert to for-profit status, they are obligated by the laws in most states to turn over their assets to another nonprofit organization dedicated to similar purposes. Without careful monitoring, however, health maintenance organizations and hospitals may successfully hold onto billions of dollars that are rightfully systems owed to the public. This article outlines the law relating to health care conversions and describes various advocacy strategies for recapturing billions of dollars owed to health care charities when a health plan converts from a nonprofit to a for-profit corporation.

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