FIDUCIARY RESPONSIBILITIES IN NONPROFIT HEALTH-CARE CONVERSIONS

Conversions of nonprofit hospitals to for-profit status have been cont roversial because of concerns that community interests are not represe nted in the deals. As a result, several states have,either passed or a re considering conversion legislation. However, dramatic variability a mong states in approaching conversions remains, including the extent o f attorney general intervention. Federal or state legislation could st andardize rules for nonprofit conversions, but such comprehensive legi slation is unlikely. Instead, this article argues that CEOs and truste es of nonprofit organizations undergoing conversions must honor their fiduciary duties to ensure that a conversion represents community inte rests.