Going public: transforming non-profit hospitals into investor-owned corporations--advantages and disadvantages.

Going public is not a good strategy for every hospital. However, hospitals that could benefit should establish a strategic plan for going public. Investor demand indicates that equity financing is not only popular, but that it can be profitable for companies. In 1983 Russell (1985) noted that 889 companies raised $12.95 billion by going public. In 1984 equity raised dropped back to $3.5 billion. There are more challenges facing hospitals today than at any moment in history. Some hospitals need to make radical philosophical and financial changes if they are to survive. Going public, if done properly and conscientiously, can provide hospitals with interest-free dollars and future financing at reasonable costs.