Information about the Parties

Your nonprofit hospital or health plan is part of a system providing health care services to the entire community. In that capacity, it plays a unique role. If a nonprofit health entity in your area decides to convert, it will be very helpful to gather information on the quality of patient care, pricing, hospital and health plan finances and information about the health care delivery system in your community so that you can increase your influence in the conversion process.

Click here for specific recommendations for gathering information about a converting hospital (PDF).

It is also critical that you obtain as much information as you can about the proposed buyer of your hospital or health plan. You should gather all of the same information for the purchaser as you do for the converting entity. There is also research that you can do only on for-profits. Under the Securities Act of 1933, all companies that sell stock must file certain information with the U.S. Securities and Exchange Commission. You can obtain information about the company’s financial offerings, management, and other information through a service known as EDGAR. You can also request a copy of the company’s annual report containing a financial statement of its activities and changes in net assets. Regardless of whether the purchaser is nonprofit or for-profit, you can review information filed with state agencies and you can contact communities where conversions have occurred with the same purchaser and find out both the terms of the conversion and whether the community was involved.

What You Can Do

• If the purchaser is a nonprofit, gather its 990s and other relevant information.
• If the purchaser has stockholders, request a copy of its annual report and review its SEC filings.
• Regardless of the tax status, seek out other communities that have worked on conversions and have first hand knowledge of the buyer