Member Article

Membership substitution transactions are the most common form of business combination transaction in the nonprofit hospital industry. They are also widely misunderstood and the source of many mistakes. Many large 501(c)(3)s have become more acquisitive as a result of economic pressures of the ACA. Nonprofit health systems have been getting much better at participating in and winning competitive sale processes, resulting in an increased use of this business combination form.

http://www.bondbuyer.com/news/commentary/membership-substitution-transactions-226128-why-are-they-so-misunderstood-1125169-1.html