The Effect of Board Structure, Board Policies, and Financial Position on Charity Care Provided by Nonprofit Hosptials

Conference Paper

Abstract

  • In this study, 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' boards of directors is associated with board governing decisions related to charity care. Then, we examine whether these same board governing decisions are associated with the reported amount of charity care provided by hospital management. 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). Overall, using nonprofit hospitals’ 990 tax return data, we find a positive association between boards with a greater percentage of independent members and board governing decisions related to discounted (free) charity care guidelines. We also find a positive association between board governing decisions related to discounted charity care guidelines and the amount of charity care provided by hospital management
  • Authors

  • Ragland, Linda
  • Plante, Catherine
  • Publication Date

  • March 3, 2018