Question

Reasons why hospitals convert from nonprofit to for-profit status include all but which of the following?...

Reasons why hospitals convert from nonprofit to for-profit status include all but which of the following?

a. The hospital managers can gain from the transaction.
b. The hospital has access to equity capital
c. There will be a decrease in taxes.
d. All of the above.
e. None of the above.
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Answer #1

ANSWER - OPTION D

ALL OF THE ABOVE

The above given reasons are nor responsible for the conversion of hospitals from non profit to the profit seeking hospitals. The hospitals become for - profit when they feel that by for - profit status they can improve the standard of their health care services and can increase their efficiency and quality by employing more qualified doctors.

Thus the above reasons of tax benefits, access to equity capital and managerial gain do not stand true.

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