Nonprofit hospitals exist to serve their communities by offering fair, high-quality care. Because they are nonprofit, they receive benefits like tax exemptions, and in return, the public expects them to use funds to help patients, rather than to enrich individuals. At the heart of these hospitals are their boards of directors (or trustees), which oversee resources and ensure their decisions focus on patient needs. When a board member uses this position for personal gain, the hospital’s purpose is lost, and those who rely on its care suffer.
I have worked in health care for over 25 years, including as CEO of several hospitals. I have seen how important it is for hospital boards and executives to stay focused on patients. Good boards ensure money is spent wisely, patients are treated fairly, and the hospital is transparent about finances and decisions. However, when personal or political gain drives decision-making, resources are not spent where they’re needed most — on patient care. The result is a loss of trust, as patients feel they are not the priority.
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Hospital boards must remain above suspicion and preserve their integrity in order to be effective. If board members have personal motivations or do favors for powerful people, the board’s focus shifts to helping themselves. This is especially serious in nonprofit hospitals, which receive tax dollars or public support for the community’s good. If that does not happen, it is more than a broken promise — it can be fraud against the public.
A worrying example of these problems can be seen at Cooper Health System in Camden, New Jersey. The board is led by George Norcross, a political figure who has been linked to many controversies, including a recent racketeering indictment. Although everyone is innocent until proven guilty, Norcross’s use of political power for personal benefit raises questions about how Cooper Health is run.
Cooper Health has been accused of taking advantage of its nonprofit status and political connections to gather large amounts of state funding — allegedly more than other nonprofit hospitals in New Jersey. While getting extra funding is not wrong by itself, issues arise when that money might be used for personal gain instead of patient care. There have been reports of Cooper hiring former political allies at high salaries and paying companies linked to Norcross. These choices make people wonder if the board is acting in the hospital’s best interest or just helping themselves.
These distractions create problems. Instead of working on better patient outcomes, Cooper’s board and leaders are busy with lawsuits and bad publicity. This focus on self-preservation or profit can then lead to worse care for patients.
Cooper Health is not the only hospital where these problems occur, but it stands out as a warning about what happens when boards lose sight of their main duty: caring for patients. Hospital boards face a lot of pressures, including financial challenges and political expectations. However, they must remember that their chief responsibility is to protect the hospital’s mission. Without strong safeguards against conflicts of interest, misuse of power is almost certain to happen.
When boards do not meet their duties, the public and government should step in. If board members stay in place despite serious concerns, regulators need to decide whether or not to act against that hospital.
Ultimately, hospital boards must put patients’ interests above everything else. Leaders should not let political favors or personal profits overshadow the reason nonprofits exist: to improve community health. Cooper’s story shows why it is so urgent to fix these problems. If boards continue to allow people with serious conflicts of interest to remain in power, more and more hospitals could be steered away from their missions. We must push for change now, or risk letting entire communities lose access to fair, high-quality care.
The solution starts with leadership. By adopting rules to avoid conflicts of interest, removing questionable figures, and being fully transparent about how decisions are made, hospital boards can show they truly serve the public. When board members are ethical and honest, patients get the care they need, trust in the hospital stays strong, and the community benefits from a system that lives up to its nonprofit goals.
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