Almost a dozen not-for-profit hospitals in New Jersey have been bought by for-profit companies. The debate is on n New York and Connecticut where for-profit ownership is basically “prohibited.”
A recent article Ct Mirror article noted “State law makes it difficult, if not impossible, for for-profit hospitals to operate in Connecticut. But Tenet Healthcare, a national, for-profit hospital chain, is in the process of acquiring four Connecticut hospitals. That’s inspired two competing efforts in the legislature. One push is to change state law to make it easier for hospitals to be run by for-profits. The other is to restrict the ability of hospitals to become for-profit.”
“One of the major issues legislators are trying to tackle this session is the ability of nonprofit hospitals to convert to for-profits. It’s a complex and highly charged issue. Some people fear that without the ability to become for-profit, small community hospitals could struggle to survive. Others say allowing hospitals to become for-profit could hurt workers and communities unless protections are built into law.”
“Currently, Connecticut has 28 nonprofit hospitals and one for-profit (Sharon Hospital, which became for-profit before the current restriction was created). Tenet is poised to acquire Waterbury, Bristol, Manchester Memorial and Rockville General hospitals as part of a partnership with the Yale New Haven Health System — deals that would make the four hospitals for-profit but wouldn’t change the Yale system’s status as a nonprofit. The situation in Waterbury is particularly charged because of a fight over givebacks between the hospital and the unions representing workers.”
“Hospital officials say there are only two major differences. For-profit hospitals pay property and income taxes while nonprofit hospitals don’t. And for-profit hospitals have avenues for raising capital that nonprofits don’t have. (The ability to access capital is important for hospitals looking to upgrade facilities or buy costly medical equipment or information technology systems.)”
Click here to read the full Ct Mirror article “How different are for-profit and nonprofit hospitals?” by Arielle Levin Becker.
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Jonathan M. Metsch, Dr.P.H., is Clinical Professor, Preventive Medicine, Icahn School of Medicine at Mount Sinai; and Adjunct Professor, Baruch College ( C.U.N.Y.), Rutgers School of Public Health, and Rutgers School of Public Affairs and Administration.
This blog shares general information about understanding and navigating the health care system. For specific medical advice about your own problems, issues and options talk to your personal physician.