You are a member of the board of directors for Selfless Health, an integrated delivery system that includes an academic medical center, three community hospitals, a long term care facility, and a home health agency. Selfless Health struggles to operate in the black, in fact any years where the system does not lose money is considered an achievement. The board has been approached by MMC (Massive Mega-Capital, a venture capital firm) with an offer to acquire the health system.

The board chair has asked you to provide a summary analysis comparing not-for-profit and for-profit health systems. What are the benefits and risks of each model? Is there evidence of the superiority of either system? Does your home state allow for-profit ownership of hospitals? Conclude your summary with a recommendation for Selfless Health. Should it accept the takeover? Why or why not?

Sample Solution