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While not necessarily improper, administrators and board members might be forced to choose between what’s best for the hospital and what’s best for their private interests.

By
ANDREA FULLER and

MELANIE EVANS
Aug. 21, 2016 12:31 p.m. ET

Nonprofit hospitals have extensive business ties that can pose conflicts of interests for their administrators and board members, a Wall Street Journal analysis of newly released Internal Revenue Service data shows.

While having relationships with companies doing business with a nonprofit hospital isn’t necessarily improper—as long as the deals are disclosed and at market rate—administrators and board members sometimes may be forced to choose between what’s best for the hospital and what’s best for their private interests.

“Just because something is legal doesn’t mean that it’s appropriate,” said James Orlikoff,a Chicago-based hospital governance consultant. “You run the real risk of violating the public trust.”

https://www.wsj.com/articles/nonprofit-hospitals-business-relationships-can-present-conflicts-1471797105?mod=e2tw