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« A living city | Main | "My colleagues' coffers" »

Mar 05, 2014

Comments

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Axelskater

:) I laughed out loud at the "Best Cameo"

Tony Wilkins

Subliminal Award: Where did that "Twilight Zone" music come from?

Hartzman

The CFGG can be/would most likely be purchased by another non profit.

If the Community Foundation were to be purchased by a for profit company, they would have to pay property taxes.

Would make more sense tax wise as a non profit subsidiary write off for profit entity for tax reasons in my view.

Like a "non-profit" hospital.

g

Ed Cone

George, I do not think you are describing plausible, or in some cases even possible, scenarios about the future of this large local non-profit. In my view, you dilute the power of reasonable questions about PAC funding by including this stuff in the mix. In a Hartzmanesque worldview, one might posit that your real goal is to undermine the opposition.

Tony, I expect you to get to the bottom of the Twilight Zone question. Also, you look impressively professional and serious on the teevee.

Hartzman

The Yes Weekly Column lays out my specific objections.

I think the calling me crazy thing is a bit tired at this point.

Ed Cone

George, I read your Yes Weekly column. It was solid and sober.

Where was that guy on Tuesday night?

I pointed out that one of the risks you cited from the floor at the Council meeting was in practical terms impossible, and certainly wildly implausible.

If what you're doing is meant to be more than performance art, you're better off owning your words instead of complaining that a joke about your speaking style hurts your tender fee-fees.

Hartzman

"I pointed out that one of the risks you cited from the floor at the Council meeting was in practical terms impossible, and certainly wildly implausible."

Please explain.

Hartzman

"Cash-poor non-profit hospitals, unable to borrow money for needed improvements in facilities and equipment, are eagerly seeking for-profit suitors. And for-profit hospital companies and investment firms — eyeing the improving economy and the expected influx of millions more insured Americans as a result of the new federal health overhaul law — see opportunity in the non-profit sector.

But the transactions are also reigniting a long-running debate: Are the deals good for patients, or do they result in an overemphasis on profits that poses a threat to the quality of care?

Such questions are especially sensitive in Detroit and Boston, bastions of non-profit health care. In Massachusetts, state Attorney General Martha Coakley held a series of hearings on the proposed purchase of Caritas Christi Health Care, a Catholic chain that owns six hospitals, by private-equity firm Cerberus Capital Management. The deal remains a topic of intense debate.

...the acquisition trend is likely to pale in comparison to the late 1990s and early 2000s, when for-profit companies such as Columbia/HCA (now the Hospital Corp. of America) and Tenet Healthcare snapped up non-profit hospitals at a rapid clip."

http://usatoday30.usatoday.com/money/industries/health/2010-07-13-hospitalmergers13_CV_N.htm

Hartzman

As nonprofits consider strategies for the future, it is not unusual for a board or staff to explore the possibility of collaborating or entering into strategic alliances with another nonprofit(s) or even a for-profit entity.

...Note for nonprofits engaging in collaborations/strategic alliances with for-profit entities: Have you evaluated the risk of potential for prohibited "private benefit?" - One objective of any collaboration should always be to protect the charitable nonprofit’s tax-exempt status and avoid “private benefit” transactions.

On the other hand, built the right way, strategic alliances with for-profit corporations can be extremely effective. The Hitachi Foundation shares case studies of how to do it right: A Pocket Guide Nonprofit Leaders: Building Strong Partnerships with Businesses.

http://www.councilofnonprofits.org/knowledge-center/resources-topic/administration-and-management/partnerships-and-collaboration#sthash.QduqEIPz.dpuf
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Nonprofit Hospitals Swap Breaks for Mergers Under Law: Taxes

Some nonprofit hospitals are finding it easier to give up their tax exemption and merge with a for-profit company than to meet the charitable-care rules of the new health law.

...If they find that the best way for them to serve their communities is by partnering with a for-profit, they may pursue a joint venture or a deal that converts them into a for-profit.

A tax-exempt nonprofit hospital merging with a for-profit hospital typically would lose its tax-exemption and sell its assets to the for-profit group. Money it has received from the sale would go to create a charitable foundation that could continue to provide services.

...Some of it is likely to be across state lines. The not-for-profit Fauquier Health -- a community health system comprised of a hospital, rehabilitation and nursing center, wellness center and cancer center in Virginia -- announced in March that it is merging with a Tennessee for-profit holding company, LifePoint Hospitals, in a joint venture. One of the byproducts was a community foundation with a $100 million endowment.

...There are fewer requirements when two nonprofit hospitals are being merged than when a for-profit and nonprofit are being merged, she said. Among the criteria for the review are tax ramifications, conflicts of interest and the impact on charitable assets, she said.

http://www.bloomberg.com/news/2013-10-24/nonprofit-hospitals-swap-breaks-for-mergers-under-law-taxes.html
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What am I missing Ed?

Ed Cone

That hospitals differ in significant ways from a community foundation?

Your scenario reminded me of this blog post I wrote in 2002:

Sydney doesn't want to fly. I ask her why. She says she fears that terrorists will steal the plane and fly it into a building. I say that won't happen. She says, what if it does? I say, then we die. Lisa looks at me like I'm crazy for speaking to an eight-year-old that way, but I think she knows the answer and so it is fair to validate her understanding before quickly moving on to the reasons such events are highly unlikely. Now if I can just keep her from throwing up en route I will be dad of the day.

You are in my view arguing the equivalent of never getting on a plane again after 9/11. I think Mike Barber explained risk and reward pretty well the other night.

Your column was better than your oral presentation for being more realistic.

Ed Cone

This thread about the ownership of and prospects for Center City Park addresses some questions related to the potential sale of assets to for-profit entities.

Billy Jones

Apparently Ed didn't read the comments in the thread he linked to as his argument was thoroughly trashed there. But like Ed always says, "The best stuff is always in the comments."

No one has yet to prove that City Center Park and now GPAC can't be sold off to the highest bidder any time the "non profit" desires to do so.

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