With The ACA Under Fire, Can Health Conversion Foundations Patch The Safety Net For Low-Income Americans?

With the threatened repeal of the Affordable Care Act (ACA), a surprising source is emerging as the nation’s largest pool of philanthropic dollars for health: health conversion foundations. Together, 228 conversion foundations represent some $27.5 billion of assets, according to our estimates. What’s more, conversion foundations are already often the largest health funders in their geographic area, dispensing more than $1.3 billion a year, based on our research, to enhance the health and well-being of mostly low-income Americans and patching a fraying safety net in the process. Sometimes called health legacy foundations, health conversion foundations form when a nonprofit health care organization converts to for-profit status or is sold to a for-profit or another nonprofit. Transaction proceeds form the basis for a new foundation intended to support the health of the community or state that the organization once served. While some conversion foundations still focus on access to health care and insurance coverage, many are moving “upstream” to address issues such as social determinants of health (for example, access to healthy food) and health equity. “This work has evolved over the 10 years we’ve been around,” said David Sandman, president and CEO of the New York State Health Foundation, a conversion foundation, in a telephone interview. That funder’s assets top $270 million. “Today, much of our work is prevention-focused. We’re focusing on creating health...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: GrantWatch Hospitals health conversion foundations health insurers health legacy foundations Health Philanthropy Health Reform mergers and acquisitions Safety Net Social Determinants of Health Source Type: blogs