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Health Affairs, Vol 16, Issue 2, 131-143
Copyright © 1997 by Project HOPE

Journal Article

Strategic and economic factors in the hospital conversion process

Cost containment and managed care pressures are driving hospitals to consolidate. Affiliation proposals from not-for-profit and for-profit partners will offer fundamentally different solutions to governance and economic issues. A clear definition of goals; an open, conflict-free proposal process; and a good understanding of value are the key ingredients of a successful transaction and regulatory approval, especially in an environment of heightened political interest in conversions.

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