News Headlines Article

Nonprofit Hospitals Adjust to Attract Investors
The Wall Street Journal

Late last year, a hospital operator with $14 billion in annual revenue sent a team of executives to Boston to schmooze with investors during lunch.

For most of corporate America, such events aren’t unusual. But this large hospital is a nonprofit.

As Trinity Health of Livonia, Mich., shows, more nonprofits are starting to resemble big business. In health care, where nearly 60% of hospital operators are private nonprofits, recent consolidation has created large organizations that span several states, with multibillion-dollar budgets and tens of thousands of employees.

While they don’t have traditional shareholders, they have long had bondholders through their borrowing in the $3.7 trillion municipal bond market, which is open to nonprofits in addition to local governments.