Tax exempt hospital up and running, and the economic boom in that area has benefited the entire geographic area, that the board of directors has come to you and asked you to be chair of the board.

Fast Forward 5 years. You and the committee were so successful in getting your tax exempt hospital up and running, and the economic boom in that area has benefited the entire geographic area, that the board of directors has come to you and asked you to be chair of the board. This is an honor and by now you are so committed to the community that you are willing to take on this role. Since this is a nonprofit, you are not paid for your services on the board. The CEO of the hospital is paid, of course, and you are careful to make sure that the salary and benefits meet the IRS Intermediate Sanctions requirements. The CEO is also a member of the board. The board has decided that the hospital should open a free-standing outpatient clinic in a location on the other side of town. The CEO happens to own a parcel of land that would be ideal for this purpose and wants the hospital to buy it from her. Discuss the issues this raises and what processes you will follow to resolve the issue.

As you address each of these issues, remember to discuss the law and the implication

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