We examine the association between board composition, board governance and charity care provided by nonprofit hospitals. First, we investigate whether the composition of nonprofit hospitals' board of directors is associated with board governing decisions related to charity care. Then, we examine whether nonprofit hospitals' board governing decisions are associated with the amount of charity care provided. These research questions are motivated by legislators’ and regulators’ interest in better understanding how nonprofit hospitals behave in terms of their charitable missions (Kennedy, Burney, Troyer and Stroup 2010). Using nonprofit hospitals’ 990 tax return data, we find a positive association between board composition (i.e., boards with a greater percentage of medical doctors and independent members) and board governing decisions related to charity care. We also find a positive association between board governing decisions (i.e., stronger discount charity care decisions and having open accessibility to financial reports) and the amount of charity care provided.
