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Protecting Health, Preserving Assets

Laws Governing Conversions, Mergers, and Acquisitions Among Health Care Entities

By Natalie Seto, Kathy Collins & Bess Karger Weiskopf

When nonprofit health care corporations and insurers convert to for-profit status, billions in charitable assets are transferred into organized philanthropy. Issues about valuation and conflicts of interest remain unresolved in many states, however, and threaten a lifeline for persons who increasingly face barriers to adequate health care. Twenty-one state laws address the restructuring of nonprofit entities.

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