Do not-for-profit hospitals and health plans warrant special government protection?
No, says a new report published in the recent Health Affairs journal.
"In my view, the case has not been made for a general policy of government protection for the nonprofit health sector," according to the report by Georgetown University law professor M. Gregg Bloche.
In his report, Bloche wrote that the freedom not-for-profits enjoy from investors and financial disclosure laws can be a competitive advantage that publicly traded companies don't enjoy.
Bloche's report said lawmakers should neither reflexively oppose for-profit companies in the health sector nor turn a blind eye to the not-for-profits.
He said "robust policing" is needed for deals that dispose of a not-for-profit's assets. It is important, he said, to avoid "opportunistic behavior" and "golden parachute" payments to executives.