Chapter 9.B.1: Nonprofit and Public Entities

Queen of Angels Hospital is located near downtown L.A.  At one point in its history, the vast majority of L.A. residents had been born there, including many movie starts.  In 1985, it merged with Hollywood Presbyterian, which was then closed it in 1989, before selling its newer facility to Tenet Health System, a major for-profit chain.  During the 1990s, the abandoned hospital was the site for many films, including Patriot Games, Ghost, Apollo 13, Reality Bites and Naked Gun 33 ½

In 1996, it was purchased by a pastor who, working with congregations and others, runs it as a shelter and social services facility for poor and homeless people, http://www.dreamcenter.org/

A good collection of information and resources about nonprofit hospital conversions can be found on this web site maintained at Duke University: http://ncschospitalconversion.wordpress.com/hospital-conversion-in-the-carolinas/

For general advice on corporate responsibility in health care, see  OIG and AHLA, Corporate Responsibility and Corporate Compliance: A Resource for Health Care Boards of Directors (2003) 

Recent scholarship has focused on a hybrid corporate form known as public benefit corporations, which have both for-profit and nonprofit elements. See Terry L. Corbett, Operationalizing the Health Care Benefit Corporation, 24 J. Health Care L. & Pol'y 267-345 (2021);Yaniv Heled, Liza Vertinsky, Cass Brewer, Why healthcare companies should be(come) benefit corporations. 60 B.C. L. Rev. 73-144 (2019); Terry L. Corbett. The case for a health care benefit corporation. 47 Cap. U. L. Rev. 183-339 (2019).

For Further Readings on religious hospitals, see Kathleen Boozang, Deciding the Fate of Religious Hospitals in the Emerging Health Care Market, 31 Hous. L. Rev. 1429 (1995); Lisa C. Ikemoto, When a Hospital Becomes Catholic, 47 Mercer L. Rev. 1087 (1996); Lawrence Singer, Realigning Catholic Health Care: Bridging Legal and Church Control in a Consolidating Market, 72 Tulane L. Rev. 159 (1997); Comment, 17 St. Louis U. Pub. L. Rev. 157 (1999).

On conversion to for-profit status, see Mark A. Hall & Christopher Conover, Privatization of Blue Cross Plans: Public Benefit or Public Harm?, 27 Annu. Rev. Public Health 443 (2006); David Hyman, Hospital Conversions: Fact, Fantasy, and Regulatory Follies, 23 J. Corp. L. 741 (1998); Mark Krause, “First, Do No Harm”: An Analysis of the Nonprofit Hospital Sale Acts, 45 UCLA L. Rev. 503 (1997).

On the business judgment rule, see Michael Peregrine & James Schwartz, The Business Judgment Rule and Other Protections for the Conduct of Not-for-Profit Directors, 33 J. Health L. 455 (2000); Mary O’Byrne, Directors’ Duty of Care to Monitor Information Systems in HMOs: Some Lessons from the Oxford Health Plan, 14 J. L. & Health 45 (2000).

For discussion of the post-Enron corporate governance issues raised by the Sarbanes-Oxley Act, see Robert W. Friz et al., The Sarbanes-Oxley Act: Considerations for Nonprofit Health Care Organizations, 18(5) The Health Lawyer 1 (June 2006); Michael J. Myers, Juxtaposing Sarbanes-Oxley with JCAHO Governance Standards: A Shortcut to Auditable Health System Compliance?, 51 S.D. L. Rev. 465 (2006); Glenn T. Troyer et al., Governance Issues for Nonprofit Healthcare Organizations and the Implications of the Sarbanes-Oxley Act, 1 Ind. Health L. Rev. 175-211 (2004); James G. Wiehl, Roles and Responsibilities of Nonprofit Health Care Board Members in the Post-Enron Era, 25 J. Leg. Med. 411 (2004); Symposium, 3 Seattle J. Soc. Justice 205 (2004); Note, 2011 U. Ill. L. Rev. 229.